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European Edition
7th January 2026
 
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THE HOT STORY

UK workers refuse promotions to avoid tax trap

Research for the Telegraph suggests that a number of high-paid workers in the UK are turning down promotions, cutting hours or donating to charity to avoid a £100,000 (€115,000) tax threshold. The analysis saw 43% of managers say they or their employees have deliberately reduced income to avoid punitive tax rates. Frozen thresholds and growing awareness of a tax trap which removes childcare benefits and tapers the personal allowance - creating effective marginal tax rates of 62% - have led many to boost pension contributions, use salary sacrifice schemes, cut hours, turn down promotions, retire early or donate to charity. Economists, tax experts and NHS leaders warn the cliff edge is irrational and damaging productivity. Petra Wilton, from the Chartered Management Institute, said: "When employees make those decisions, organisations lose experience and valued leaders, and teams feel the impact immediately." 
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GUIDE

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TECHNOLOGY

Riga to host Forum on labour market transformation

On 16 March 2026, Riga will host the "Future of Work in the Age of AI" forum, gathering over 600 participants and 60 speakers from 20 countries. Organised by the Future of Work Institute ERDA, the State Employment Agency of Latvia, and Google, the event aims to address the impact of AI on Europe's workforce. Evita Simsone, Director of the State Employment Agency, said: "AI literacy will become a prerequisite for everyone entering the labour market." The forum will feature discussions on skills development, job transformation, and the role of education in adapting to AI.
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REMOTE WORKING

Water boss blames home workers for local water crisis

South East Water chief executive David Hinton has suggested that an increase in home working in the UK was partly to blame for leaving residents of Tunbridge Wells without water for nearly a fortnight in December.  “Starting in 2021, we had an uptick in demand following Covid. We are a commuter-based area and a lot of our customers are spending a lot more time at home,” he told MPs on the environment select committee. “There were lifestyle changes and we’ve had some really extreme weather events over that period between 2021 and 2025. And that has meant the resilience of these particular areas has been stretched.”
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WORKFORCE

Skilled workers struggle with new Danish employment rules

Denmark's new employment reform aims to simplify the welfare system, but it risks neglecting skilled professionals. Vinadda Kristensen, who has worked in the shipping industry for over 20 years, highlighted her struggles with the Jobcenter system. She noted that support often varies by caseworker, with some applying a rigid approach that fails to address individual needs. Kristensen emphasised the importance of tailored support, including professional development and networking opportunities, rather than mandatory sessions that do not align with her experience. She says: "A welfare system that recognises individual experience will better serve job seekers."
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HIRING

A UK degree is not a 'passport to social mobility'

Professor Shitij Kapur, the Vice Chancellor and President of King's College London, has told the Guardian that a university degree is no longer a "passport to social mobility" in the UK due to the country's "surfeit" of graduates, with a degree now acting more like "a visa for social mobility - it gives you the chance to visit the arena that has graduate jobs and the related social mobility, but whether you can make it there is not a guarantee." Rising competition for graduate roles, he suggests, "is not just all because of AI filling out forms or AI taking away jobs. It's also because of the stalling of our economy and causing a relative surplus of graduates."
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RISK

KLM faces de-icing fluid crisis

Severe winter weather has led to a shortage of de-icing fluid for KLM at Amsterdam's Schiphol airport, causing significant flight cancellations. KLM reported that its 25 de-icing trucks have been operating continuously, using about 85,000 litres of fluid daily. The airline has sent employees to Germany to secure more supplies. "Since Friday KLM has been de-icing aircraft at Schiphol ​around ‌the clock using de-icing ‍fluid ⁠delivered daily," the Dutch arm of airline group Air France-KLM said. "Due to a combination of extreme weather conditions and delays in supply from the provider, stock levels are running low. This challenge is currently widespread across Europe," it added. Winter conditions are expected to persist.
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INTERNATIONAL

US Chamber gets fast-tracked appeal in $100,000 H-1B fee dispute

A US appeals court has agreed to expedite an appeal regarding President Donald Trump's $100,000 fee on new H-1B visas for hiring skilled foreign workers. The US Chamber of Commerce argued that a swift review is crucial to protect employers' rights ahead of the H-1B visa lottery in March. "Those employers' ability to participate in the H-1B program this year therefore hinges on the outcome of this appeal; without relief by March, it will be too late,” the Chamber said. The appeal follows a December 24 decision by a district judge affirming the fee's legality. The Trump administration has said  the H1-B program has been abused by US employers who seek to replace American workers with lower-paid foreign workers.

Bank employees in India rally for five-day week

The United Forum of Bank Unions (UFBU), an umbrella body representing nine unions in India's banking sector, organised a demonstration at Bank Square, Sector 17, Chandigarh, as part of its nationwide campaign demanding the immediate implementation of a five-day working week. The gathering heard that if the five-day work week was not implemented, the agitation would intensify, culminating in an all-India bank strike on January 27. "It is unfortunate that the government is not responding to our genuine demand. There would be no loss of man-hours because we have agreed to an extra 40 minutes working per day from Monday to Friday," UFBU said in a statement.

Oil industry makes the case for Maduro's successor

Delcy Rodríguez was sworn in as acting president of Venezuela in Caracas on Jan. 5. Bloomberg reports that executives, lawyers, and investors tied to the oil industry made the case for Rodríguez as Nicolás Maduro's successor following his ouster, observing that as an oil minister herself, she would be best placed to guide the US plan to optimise Venezuela's oil production. However, the biggest US oil majors were not among Rodriguez's advocates. A spokesperson for Chevron, the only major US oil company licensed to operate in Venezuela, said it “had no advance notice of the recent operation and did not engage in any discussions with administration officials regarding governance for a post-Maduro Venezuela.” 

Hong Kong accounting firms plan hiring spree

KPMG, Deloitte and EY are expanding their respective workforces in Hong Kong, as they aim to attract new accountants while integrating artificial intelligence to enhance efficiency. Andrew Wong, partner at KPMG China, said: "We do not believe AI is a replacement for humans," as he highlighted that AI in fact complements human roles. Derek Lai from EY noted that AI tools are essential for attracting young talent, especially in debt restructuring, where efficiency is crucial.
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OTHER

Milan school shakes up education model

Milan's Simona Giorgi school will adopt a Finnish-inspired model that limits teacher talk to ten minutes per lesson, abolishes homework, and encourages learning through games, debates, and even a “decompression room” filled with spongy seating. Headmistress Anna Polliani said the changes aim to support students’ well-being, and reflect 12 years of experimentation with laptops, bilingual teaching, and reduced daily topics.
 
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