Debenhams Ottaway’s Employment Law Round Up – April 2026

Click the links below to read more about some recent and upcoming changes in employment law:

• Job offer imposed obligations restricting employer’s right of withdrawal
• Government proposes to prevent misuse of NDAs in workplace harassment and discrimination
• High Court determines compensation for leaver denied share options
• Government publishes guidance for large employers on creating gender equality action plans
• Regulations laid to enable Fair Work Agency to carry out enforcement actions

Job offer imposed obligations restricting employer’s right of withdrawal

The Employment Appeal Tribunal has highlighted in the recent case of Kankanalapalli v Loesche Energy Systems Ltd [2026] EAT 49 that a “conditional” job offer cannot always be safely withdrawn if the conditions are not true pre-conditions to a contract being formed but are instead conditions that take effect only after the contract has already been formed.

In this case, although references and right‑to‑work checks were outstanding, the EAT said the tribunal should have treated the contract as already concluded: the offer set out key terms, it had been accepted, and the employer had taken steps towards the start of employment. The conditions were therefore better viewed as allowing termination if not satisfied, rather than as preventing a binding contract from existing. As there was no notice clause, the EAT implied a reasonable notice period and held that three months was reasonable given the seniority of the role, the recruitment process and the international move.

The decision underlines the importance of clearly drafting any true pre‑contract conditions and including express notice provisions in offer documentation. If checks such as references or right‑to‑work are meant to allow withdrawal without notice, the offer should clearly state that no binding contract arises unless and until those checks are completed.

Government proposes to prevent misuse of NDAs in workplace harassment and discrimination

On 15 April 2026, the Government launched a consultation on proposals to curb the misuse of NDAs in workplace harassment and discrimination cases. The proposals relate to new section 202A of the Employment Rights Act 1996 (inserted by the Employment Rights Act 2025), which is expected to come into force during 2027.

If brought into force, this would invalidate contractual terms that try to prevent workers from raising or speaking about relevant harassment or discrimination, or how their employer handled it, unless the agreement is an ‘excepted agreement’ meeting specific protective requirements set out in regulations, such as independent legal advice and a mandatory cooling‑off period.

Ahead of these possible changes, you should start thinking proactively about your documentation. In particular, you may want to consider auditing NDA clauses in settlement agreements, employment contracts and policies to identify wording that could restrict disclosures about harassment or discrimination.

High Court determines compensation for leaver denied share options

The High Court has confirmed in the recent case of Dixon v Globaldata PLC [2026] EWHC 850 (Ch) that employers who go back on clear assurances about share options can face significant compensation claims where an individual relies on those assurances to their detriment.

In this case, the employee relied on a promise that his options would remain exercisable after leaving, and the court awarded equitable compensation on the same basis as other option holders who exercised through the relevant sale process. Crucially, the award also included replacement options granted after he left to continuing plan participants, which the court considered it was unconscionable to withhold in the circumstances.

The decision is a reminder that assurances about share incentives can be binding and costly if not honoured.

Government publishes guidance for large employers on creating gender equality action plans

On 7 April 2026, the Government published step‑by‑step guidance for employers with 250+ employees on how to prepare gender equality action plans under the Employment Rights Act 2025. Plans can be produced voluntarily from 6 April 2026 and are expected to become mandatory from Spring 2027, subject to secondary legislation setting the detail and commencement arrangements.

The guidance sets out a six‑step process requiring employers to

• understand the drivers of their gender pay gap and menopause‑related impacts

• choose at least two actions (including one on pay and one on menopause support)

• provide brief supporting narratives

• submit the plan via the gender pay gap reporting service

• track progress

• review/update over time.

While intended to support meaningful action on gender equality, the guidance adds to compliance demands. You should use the voluntary period to pilot your gender equality action plan now, so you can identify gaps, shape clear and defensible messaging, and put robust processes in place well before reporting becomes mandatory.

Regulations laid to enable Fair Work Agency to carry out enforcement actions

From 7 April 2026, the Fair Work Agency became operational, bringing together key labour market enforcement and licensing functions. Regulations have been made to ensure that it can carry out enforcement activity in its own name in areas such as employment agency rules, gangmaster licensing and labour exploitation (although further commencement regulations are still required for some wider Employment Rights Act 2025 powers).

While the agency’s full powers under the Employment Rights Act 2025 are being phased in and not all are yet in force, the direction of travel is clear: enforcement will be more centralised and robust. The Government has previously confirmed that the agency is expected to take over national minimum wage enforcement from HMRC and, over time, may also become responsible for enforcement relating to holiday pay and statutory sick pay, although no implementation timetable has been confirmed.

In short, you should treat the Fair Work Agency as a trigger to get your business’s core employment compliance in order now, rather than waiting for the full suite of powers to take effect.