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20th December 2024
 
THE HOT STORY
Labour MP says terminally ill workers deserve better rights
Labour MP Lee Barron has led a debate at Westminster Hall for a change in the law to create additional employment protection for people who have been told they have less than six months to live. Barron said a "loophole" meant some employers were able to dismiss workers who were terminally ill. However, responding on behalf of the government, a minister in the Department of Business and Trade said a change was not needed. Justin Madders told the debate that the "flexible approach we currently have is the right one." But Barron, a supporter of the Dying to Work campaign, said calls for change would not go away. He said: "If you have been given a terminal diagnosis, the last thing you should be worrying about is taking your workplace to an employment tribunal. [The debate] is about our values as a society and our values are of compassion and fairness. Those values shouldn't stop at the front door of your workplace."
REMUNERATION
UK employers hold pay deals at 4% for fifth month running
UK employers have held pay deals at 4% for a fifth month running, down from 6% over 2023 as a whole, according to a survey by human resources data firm Brightmine. Pay deals were steady in the three months to November and are expected to slow next year as companies economise to meet higher tax bills introduced by the new Labour administration's first budget, the survey showed. "While it's great to see pay awards are still being offered across all industries, there's no doubt that businesses next year are facing a tough landscape and will have to make some difficult decisions," observed Sheila Attwood, Brightmine senior content manager.
DIVERSITY, EQUITY & INCLUSION
Call to end race-based internships
The Telegraph reports that Downing Street faces increasing pressure to prohibit "race-based" internships that exclude white applicants, particularly following the controversy surrounding intelligence services offering summer internships only to individuals from "Black, Asian, mixed heritage or ethnic minority" backgrounds. In the House of Commons, Claire Coutinho, the shadow equalities minister, said: "Equality in this country must mean equality of opportunity," as she urged the government to clarify that such hiring practices should not be sanctioned. In response, equalities minister Seema Malhotra affirmed that discrimination as described is illegal. Former home secretary Suella Braverman argued that "discrimination in the name of 'diversity' has gone too far," and said that equality should ensure fairness for all. A spokesperson for MI5, MI6, and GCHQ defended the programme as a "lawful measure" to enhance participation. 
LEGAL
Prenuptial agreements should be made legally binding, Law Commission says
The Law Commission has proposed significant reforms to matrimonial law, advocating for legally binding prenuptial agreements to reduce disputes over asset division during divorce. The commission argues that current rules are unpredictable and often lead to conflict, saying that they "promote dispute." The 2010 Supreme Court ruling in the Radmacher case recognised prenups but did not make them automatically binding. Critics, including Prof Sharon Thompson from Cardiff University, warn that such changes could disadvantage less wealthy partners, particularly women, who may sacrifice careers for family. Thompson pointed to the potential long-term economic vulnerability of spouses who sign prenups without fully understanding their implications, saying: "The damage this does to spouses' earning capacity can be irreparable." The commission's recommendations aim to ensure that prenups are enforceable if entered into freely and with consideration for the needs of all parties involved.
Boss was sacked over Beijing spy warning
The former CEO of Imagination Technologies was unfairly dismissed after raising concerns about a potential Chinese takeover that could threaten national security, an employment tribunal has heard. Ron Black alerted GCHQ four years ago, fearing that the company's technology might be exploited for military or espionage purposes. Following his warnings, he and his wife, also a senior executive, were sacked, allegedly due to pressure from Chinese directors. The employment tribunal in Watford ruled in favour of Black, saying that his legally protected disclosures were the main reason for his dismissal. Compensation details will be determined in a future hearing.
TECHNOLOGY
Employers urged to be aware of Gen Z over-confidence with AI
Employers risk assuming that Gen Z employees are “AI natives” and must be mindful of Gen Z over-confidence in relation to artificial intelligence (AI) literacy, according to a new EY report developed with support from Microsoft and TeachAI. The How can we upskill Gen Z as fast as we train AI? report uses quiz-style questions to provide insights into the AI aptitude of more than 5,000 Gen Z respondents across 16 countries. The report also reveals that while Gen Z understands which products and tasks benefit from AI, their ability to critically assess the technology falls short. Dan Black, EY Global Talent Strategy Leader, said: “Gen Z are the world leaders of tomorrow and some of today’s leading technology users. With more exposure to AI at the start of their career than any other generation in the workforce, they’re also the most exposed to the impacts of AI. Educators and employers must prioritise skilling this generation in AI literacy, not just around task-driven use but in relation to deeper evaluation and critical thinking for much broader and loftier use.”
RETENTION
Empower teachers to challenge parents over disruptive behaviour, report says
A report published by the Tony Blair Institute has called on the government to give teachers the power to fine parents for failing to address their child's disruptive behaviour - and to be able to escalate extreme cases to the police, social services or the NHS if parents refuse to engage. Alexander Iosad from the think tank said teachers are currently "powerless and unsupported to tackle a rising epidemic of disruptive and dangerous behaviour." He said: "We have heard time and time again about the challenges of teacher retention . . . yet almost nothing about the hidden crisis driving their exit. For any other career, a safe, non-disruptive environment is the bare minimum."
WORKFORCE
Job cuts loom at black cab firm
Up to 45 employees at black cab manufacturer London Electric Vehicle Company are set to lose their jobs as part of a strategy to "drive efficiencies" within the business. The Coventry-based manufacturer plans to reduce its workforce through a mix of temporary staff layoffs and voluntary redundancies. Despite the cuts, vehicle production at Ansty Park will continue unaffected, ensuring no disruption to customers or sales. The announcement follows a strike by around 100 workers in June over a pay dispute, where members of the union Unite rejected a proposed 3.5% pay rise and a £400 one-off payment for lower-grade employees. The plant, which produces electric taxis, opened in 2017 and currently employs about 400 staff.
No Christmas cheer for housing workers
Over 100 workers from Livv Housing have initiated strike action due to a pay dispute, with the Unite union labelling the association a "Scrooge employer." The conflict arose from a proposed 5% pay increase, which workers deem insufficient in the light of rising living costs. Unite general secretary Sharon Graham said: “This dispute will only end when Livv puts forward an acceptable pay offer, something it can well afford to do.” Livv Housing has also cancelled staff Christmas parties, citing a lack of interest from employees. The strike is set to continue on multiple dates in December, affecting both Unite and Unison members.
CORPORATE
Body Shop is 'back for good and back in profit'
The Body Shop, which was bought out of administration in September by a consortium led by the British cosmetics tycoon Mike Jatania, is understood to have reported a £2m profit on £28m of sales in the first three months under its new owners. “I am so thrilled at how we are ending the year. Storm Darragh may have tried its worst, but we weathered it and some," said a note to staff from chief executive Charles Denton. He added that the chain had ended last week 17% ahead above internal sales forecasts, adding “throw whatever you like at us, and we’ll come bouncing back . . . back for good and last month . . . back in profit baby!”. The retailer is now operating 113 stores in the UK, where it employs more than 1,200 people including at its headquarters.
CYBERSECURITY
Yahoo slashes cybersecurity team by a quarter
Yahoo has laid off approximately 25% of its cybersecurity team, known as The Paranoids, resulting in the loss of 40 to 50 employees from a total of 200 since the beginning of 2024. Valeri Liborski, Yahoo's chief technology officer, acknowledged the difficult nature of the decision in an email to staff. The layoffs included the complete elimination of the so-called red team, which conducted cyberattack simulations to identify vulnerabilities. Yahoo spokesperson Brenden Lee said: “Yahoo's security program has matured significantly over the past seven years and is widely recognised as a world-class, industry-leading operation. As part of this evolution, we've made strategic adjustments, including transitioning offensive security operations to an outsourced model . . . This change reflects the sophistication of our program and enables us to concentrate resources on critical security priorities, maintaining the highest standards of protection for our users and platforms.” Overall, Yahoo laid off over 1,600 employees last year, or about 20% of its workforce, as part of a plan to enhance profitability.
INTERNATIONAL
Japan brokerages boost pay and perks for retirement-age staff
Japan's leading securities firms are increasing salaries and benefits for workers aged 60 and above, reflecting the urgent need to retain talent in a rapidly ageing society. At Daiwa Securities Group, senior employees in this age bracket have seen an average pay rise of 15% over the past two years. Nomura Holdings has also enhanced benefits, including paid sick leave, to match what younger employees get. “The diverse experience and skill sets of employees at 60 or over are important for our business,” Nomura said. As an example, Japan's biggest brokerage observed that “employees with experience in the world where interest rates are above zero can provide information that is difficult for younger generations to imagine.” As Japan faces a declining fertility rate, employers are being advised to do more to motivate older employees, including setting remuneration in line with performance and job responsibilities, according to a report by business lobby Keidanren. “Redeploying senior people as a workforce will be essential if companies want to stay in business or achieve growth,” said Nobuhiro Maeda, a senior analyst from NLI Research Institute's gerontology promotion office. “Labour shortage problems are expected to become even more dire from now.”
KPMG develops platform to reinforce corporate culture among employees
KPMG has developed a platform that aims to connect its 36,000 US employees to company culture efforts. The Culture Champions Network (CCN) "brings together people that raise their hand . . . and [are] really committed to leading the way as it relates to culture, and being an ambassador, and a role model for culture," according to vice chair of talent and culture Sandy Torchia.  The CCN platform is gamified, so as employees participate in qualifying virtual and in-person events — such as business resource group events, mentoring sessions, volunteer work, nonprofit board service, and learning and development courses, Torchia said — they can earn titles ranging from “enthusiast” to “catalyst” and eventually “legend.” Torchia said: “We wanted to give people the path and recognise them for the things that they’re doing, and also it’s helpful sometimes to have a reminder of what else you might want to do to not only achieve status along the culture legends journey, but also just to make KPMG a great place to work."
China’s food delivery platforms begin to enforce rider breaks
Meituan and Ele.me, China's two major on-demand delivery service providers, have introduced new features that alert or forcibly log out couriers who work excessively long hours, in a bid to prevent rider fatigue. Meituan's system detects prolonged working hours through the courier app, prompting riders to take a break after a certain amount of time, typically longer than 12 hours. If the suggestion is ignored, the app will eventually require the rider to go offline. The platforms are introducing the alert system as food delivery crew, along with Uber-style taxi drivers, bear the brunt of China’s economic slowdown and weakened consumer spending, forcing them to work extremely long hours to make ends meet.
 


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