THE HOT STORY

Employers predict stable pay growth

Employers anticipate stable or increased pay growth in the coming year, driven by rising living costs, according to a poll by Incomes Data Research (IDR). The survey of 121 businesses employing nearly 3m people revealed that 44% expect pay growth to remain around 3%, while 28% predict higher increases. Zoe Woolacott from IDR said: "Inflation is currently higher than it was a year ago and this has applied upward pressure on pay." The median pay award is projected at 3.4%, with some firms considering increases of 4% or more.

The Times

WORKFORCE

Scottish Government tackles unemployment crisis

The Scottish Government is set to announce new measures to address long-term unemployment. Deputy First Minister Kate Forbes will reveal the plans during a visit to a Glasgow building site. She will meet workers who have benefited from the No One Left Behind service. Since its inception, the scheme has helped 28,699 individuals secure employment and assisted 40,578 others in gaining training, work experience, or re-engaging with education. Forbes said: "These measures are crucial for supporting our communities."

The Press and Journal

More firms get a taste for 'peanut butter' pay hikes

A new report from Payscale suggests that employers are increasingly considering "peanut butter raises" - an approach which involves uniform pay increases spread evenly across the firm rather than performance-based pay hikes. The report indicates that over 40% of organisations are adopting this method, rising to 56% among firms which expect to exceed their revenue goals. Critics argue that this method fails to recognise higher-performing employees while also rewarding lower performers.

The Guardian

EIS launches second strike ballot

Scotland's largest teaching union, the Educational Institute of Scotland (EIS), is conducting a second ballot for potential industrial action due to unresolved issues regarding teacher workload. EIS general secretary Andrea Bradley highlighted that this vote is crucial for holding political leaders accountable, especially as commitments made by the Scottish Government remain unmet. Despite 85.9% support for strike action in the previous ballot, participation was below the required threshold. Education Secretary Jenny Gilruth emphasised the need for discussions over strikes.

The Press and Journal

The Scotsman

UK Treasury offers up to £100,000 exit packages to cut hundreds of jobs

The UK Treasury is offering its officials up to £100,000 to leave voluntarily as part of plans to cut hundreds of jobs in the finance ministry, the Financial Times reports.

Financial Times

LEGAL

Odey challenges FCA ban

Hedge fund manager Crispin Odey is set to challenge the Financial Conduct Authority's (FCA) efforts to ban him from the industry. The FCA claims Mr Odey, founder of Odey Asset Management, attempted to "evade and obstruct efforts" to hold him accountable for sexual misconduct allegations. Officials say he "deliberately sought to frustrate" the firm’s disciplinary processes by using his majority shareholding to oust its executive committee. The City watchdog last year announced plans to hand Mr Odey a £1.8m fine and bar him from the financial services industry, saying he had demonstrated a "clear lack of integrity." A hearing is set to take place in the Upper Tribunal in London.

The Times

NHS staff face uncertainty over immigration changes

The government has acknowledged it lacks data on how proposed immigration rule changes will affect NHS staff. Health Minister Karin Smyth confirmed the Department for Health and Social Care does not know the national impact of these reforms. The changes aim to extend the period for gaining indefinite leave to remain from five to ten years, with some facing a potential 15-year wait. Helga Pile, head of health at Unison, commented: "To introduce these life-altering rules with so many unanswered questions is nothing short of reckless." Amber Jabbal, director of policy at the Royal College of Nursing, said analysis indicates that one in 10 registered nurses would be affected.

The Independent

INTERNATIONAL

Germans' 'lifestyle part-time' work faces scrutiny

The economic wing of Chancellor Friedrich Merz's centre-right Christian Democratic Union (CDU), the Mittelstands- und Wirtschaftsunion (MIT), has criticised what it calls "lifestyle part-time" - a reference to "not people who need to reduce their hours to take care of children, or sick relatives or pursue education. It's about people who just want more free time," MIT spokeswoman Juliane Berndt explained to Deutsche Welle. "With a four-day week and an exaggerated work-life balance, prosperity cannot be maintained," Merz said in early January. He also complained that Germans call in sick for work too often, and suffer from a lack of work ethic.

Deutsche Welle (EN)

Investigation into WhatsApp privacy claims by US authorities

US law enforcement is probing allegations from former Meta Platforms contractors suggesting that company personnel have gained access to WhatsApp messages, contradicting the company's assertions that the service hosts private and encrypted communications. The claims, which highlight alleged “unfettered” access to chats, are being investigated by special agents from the US Department of Commerce, and echo similar allegations raised in a 2024 whistleblower complaint to the US Securities and Exchange Commission. The ongoing inquiry has not been publicly disclosed until now.

Bloomberg

EU plans to extend 90-day rule for some non-EU workers

The European Commission is to look into allowing certain non-EU professionals to stay in the EU beyond the current 90/180-day rule. “The Commission will work closely with Member States to identify pragmatic solutions to accommodate extended short stays for selected categories of third-country nationals, ensuring a security and economic benefit for the Union, as well as legal clarity for travellers," the commission outlined in its strategy to allow longer short-stay Schengen visas for certain professional categories.

The Local

Singapore strategy aims to help workers navigate AI impact on jobs

Singapore is launching a national workforce strategy to enhance artificial intelligence literacy among its workers. The Economic Strategy Review (ESR) committees emphasised the need for continuous learning to adapt to technological changes. Deputy Prime Minister Gan Kim Yong said that growth no longer guarantees job creation due to the increased profile of automation. He highlighted the importance of skills upgrading and education to prepare workers for future challenges. The strategy includes integrating training with work and enhancing AI fluency across the workforce, ensuring Singaporeans remain competitive in a rapidly evolving economy.

Straits Times

OTHER

More fines issued for term-time holidays

The Department for Education has published new figures showing that a record 459,288 fines were issued in England last year to families who took children on holiday during term-time, up 4% year-on-year, and accounting for 93% of all fines for unauthorised school absences. In Yorkshire and the Humber, the region with the highest rate of fines, the rate fell slightly to 103 fines per 1,000 enrolled pupils, while in London, where the rate is lowest, it rose slightly to 36 per 1,000 pupils. A DfE spokesperson said term-time holidays "place the burden on teachers to support missed learning - affecting the entire class." ASCL general secretary Pepe Di'Iasio said it is "clear that fines are not acting as much of a deterrent" against the "vast increase" in the cost of holidays outside term time, and the government should "consider any ways they can limit how travel firms raise their prices during school holidays."

Schools Week

BBC News

The I

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