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UK Edition
22nd January 2024
 
THE HOT STORY
UK judge rules against FCA manager who wanted to work from home
Elizabeth Wilson, a senior manager at the Financial Conduct Authority, has had her demand to work from home full-time quashed by a judge, who said the regulator was within its rights to deny the request. Judge Robert Richter wrote in a judgement made last month and only just published: "It is the experience of many who work using technology that [remote working] is not well suited to the fast-paced interplay of exchanges which occur in, for example, planning meetings or training events when rapid discussion can occur on topics.” He also pointed to “a limitation to the ability to observe and respond to non-verbal communication which may arise outside of the context of formal events but which nonetheless forms an important part of working with other individuals.” Lawyers said they expect more legal disputes over the issue as employers increasingly demand staff spend more time in the office.
WORKFORCE
Modest rise in unemployment expected this year
The number of workers at risk of redundancy in UK businesses rose by 58% in 2022, reaching 278,149. The increase reflects efforts by businesses to cut costs and offset the impact of weak demand and higher interest rates. Despite this surge, redundancy notices remain significantly lower than pre-pandemic levels. Historically, an average of 381,000 dismissal notices were sent to the government annually between 2016 and 2019. Yael Selfin, chief economist at KPMG UK, said the figures indicated that there would be "a gradual rise in unemployment over the coming year, but may not point at a significant acceleration." Ellie Henderson, an economist at Investec, said that government support to cushion the blow to the economy from the pandemic "artificially prolonged the life of struggling companies, effectively preventing redundancies that would likely have happened had the schemes not been in place."
Number of women in work hits record high
The number of women in work has reached a record high of 16m, with thousands of over-50s returning to employment. Last year, 130,000 older women rejoined the workforce, helping to boost the total number of jobs in the economy to almost 37m. Mel Stride, Secretary of State for Work and Pensions, expressed satisfaction with the progress, stating, "Two million more women in work since 2010, alongside record female employment and job levels, shows our plan is working." The Back to Work plan aims to provide extra support to 1.1m people not working. Economic inactivity has also decreased by nearly 335,000 since the pandemic peak.
Former KPMG staff angry over pensions
Partners of KPMG UK have been accused of freezing the pensions of former colleagues for up to 15 years, while awarding themselves high pay packets. Some past employees say they have not had an inflation-linked rise in their pensions since 2008, resulting in a 37% decrease in real terms. The decision not to provide discretionary rises is seen as unfair, especially as the pension fund is currently in surplus. KPMG said: "Pension benefits under the scheme built up before April 1997 are subject to discretionary increases and this year the scheme has not made a discretionary increase to payments. This is because while the scheme currently has a small actuarial surplus, it is still and will continue to receive annual contributions from the firm rather than being fully funded itself."
LEGAL
Female finance executive wins £100k compensation in sexual harassment case
A female finance executive has been awarded nearly £100,000 in compensation after winning a sexual harassment case against her boss. An employment tribunal in Southampton ruled that Louise Crabtree had suffered a "campaign of sexual harassment" and an "excessive attempt" at a romantic relationship. Marc Bandemer, the UK chairman of an investment management company, had made inappropriate comments, bought Crabtree a diamond ring, and referred to her as "naughty" in front of colleagues. Crabtree was demoted after rejecting his advances. Judge James Dawson awarded her the compensation, stating that the harassment was not acceptable and that Bandemer's behaviour was linked to Crabtree's gender. Crabtree joined the company as an executive director in April 2021 and initially had a friendly relationship with Bandemer. However, his actions escalated, and she said she felt helpless and degraded. Her failure to object to comments did not imply that she welcomed them.
Removing women from chat groups while on maternity leave is discrimination
An employment tribunal has ruled that a company which removed a woman on maternity leave from a work WhatsApp group had breached equality laws. Dental sales negotiator Asha Lad sued her employer for pregnancy discrimination after a senior male colleague refused to let her back into a work WhatsApp group while she was on maternity leave, arguing that there was “no reason” for her to have access to it while off. But a panel agreed that excluding women from staff chats they were previously part of is “isolating” and is reasonably and objectively to be viewed as less favourable treatment.
PM urged to appoint anti-corruption tsar
Rishi Sunak has been urged to appoint an anti-corruption tsar. The role has been vacant since John Penrose resigned in June 2022. Lord Pickles, who oversees the watchdog on post-government appointments, stressed the importance of filling the role with someone who can "tell important truths to government." Campaigners believe that the lack of an anti-corruption tsar has worsened issues such as PPE procurement, government appointments, and funding decisions. Margaret Hodge, chair of the cross-party group on anti-corruption and responsible tax, said the UK was “no longer a trusted jurisdiction” and called for the Prime Minister to appoint someone to “provide political leadership and tackle the corrosive impact of corruption head on.”
HEALTH & WELLBEING
IPPR warns of 'profound' fiscal threat to UK unless action on health is taken
Escalating levels of illness and health-related economic inactivity in the UK are exacerbating inequality and posing a significant fiscal threat, according to research by the IPPR Commission on Health and Prosperity. The study reveals that one in four working-age Britons without a job reside in just 50 local authorities. Individuals living in deprived areas are one and a half times more likely to experience economic inactivity and twice as likely to be in poor health. Illness is linked to low productivity, high poverty, and persistent unemployment, resulting in "bad health blackspots" across the country, the IPPR says. The Office for Budget Responsibility has warned that the rising number of people moving into inactivity and on to benefits is becoming unaffordably expensive. The IPPR emphasizes that health-related inactivity is one of the most profound fiscal threats faced by the UK. It suggests tackling the issue at a regional level with new health zones that have the power to invest, raise local taxes, and set missions.
Britain's workforce at risk of burn-out
The UK is at risk of becoming a "burnt-out nation" as a worrying number of people take time off work due to poor mental health caused by stress, according to Mental Health UK. A YouGov survey found that 35% of adults faced high or extreme levels of pressure at work, with 20% requiring time off in the past year. Chief executive Brian Dow called for government intervention and better support for the workforce. The survey also revealed that many workers do not feel comfortable voicing concerns about stress, and almost half of them believe their employers lack plans to address chronic stress. Mental Health UK urged Prime Minister Rishi Sunak to hold a national summit to create healthy workplaces and support workers.
Money worries linked to worse biological health, study finds
Money worries can have a significant impact on biological health, according to a study conducted by researchers from UCL. The study found that interactions between the immune, nervous, and endocrine systems were worse in individuals experiencing financial strain and other stressful experiences. The paper's lead author, a PhD candidate, Odessa Hamilton, said: “When the immune and neuroendocrine systems function well together, homeostasis is maintained and health is preserved. But chronic stress can disrupt this biological exchange and lead to disease.”
DIVERSITY, EQUITY & INCLUSION
Government seeks to crack down on civil servant activists
Cabinet Office Minister John Glen has launched a review to prevent civil servants from carrying out “diversity activism” during work hours. The review aims to ensure that civil servants focus on the core mission of the civil service and spend their time on their primary job. The new system will require mandarins to engage in “network activities” in their own time, before and after the working day or during lunch breaks. The move has faced criticism from the FDA union. Its general secretary, Dave Penman, accused ministers of demonising the civil service.
WORKPLACE
Majority of employees not confident in choosing workplace pension provider
The majority of employees are not confident in selecting a workplace pension provider, according to a survey by the Pensions and Lifetime Savings Association (PLSA). The survey found that 69% of employees are not in favour of the lifetime provider model. Just under one third of respondents said they would choose their own pension provider if given the option. Women and older savers were more likely to prefer their employer to choose their workplace pension provider. The survey also revealed that only 19% of savers were confident in selecting a provider, while 55% lacked confidence. PLSA deputy director of policy Joe Dabrowski highlighted the value that savers place on their workplace pension scheme and employer to manage high-quality provision. He also emphasised the need to protect employees who lack confidence or the necessary skills to make good choices.
An absent boss may encourage workers back to the office
New research suggests that a third of hybrid workers with the option to work from home say they would come into the office more regularly if their boss wasn't around so much. The study found that cost, location, and workspace quality were the main factors influencing workers' decision to work remotely. Over half of the respondents cited cost-of-living as the reason for wanting to work from home more often. Additionally, 54% mentioned that a better location would encourage them to go into the office, while 38% wished for a better workspace. The survey also revealed that 30% of hybrid workers do not have the desired working arrangements offered by their employers.
CORPORATE
Bain Capital considers sale of Zellis
Bain Capital is considering a sale of Zellis, the UK payroll software firm, with a potential value of £2bn. The buyout firm has been discussing exit options with potential advisers and may start a sale process later this year. However, Bain could also decide to keep the asset for longer. Zellis provides human resources and payroll software and outsourcing services, handling the payrolls of about 5 million employees every month. Bain acquired the firm in 2017.
INTERNATIONAL
Spanish court rules former Facebook moderator's mental health was damaged by work
A Spanish court has ruled that a former Facebook moderator's mental health was damaged by his work reviewing graphic content. The court upheld a decision by Spain's social security agency, stating that the moderator's psychiatric treatment was due to work-related issues. The ruling could have implications for how social media firms work with moderators. The moderator, employed by CCC Barcelona Digital Services, part of Telus International, between 2018 and 2020, is now entitled to extra compensation for sick leave. The court's decision is the first of its kind in Spain. The moderator's lawyer, Francesc Feliu, stated that around 20 other former and current content moderators at CCC are also seeking similar legal grounds. The court described the content the moderator had to watch, including self-mutilations, beheadings, torture, and suicides. Facebook has not yet commented on the ruling, while Telus expressed disappointment and plans to appeal. In 2020, Facebook settled with US content moderators suffering from mental health issues. Last year, a moderator in Germany was put on paid leave after calling for improved working conditions.
Thousands of Indian men seek jobs in Israel
Thousands of men in India's Harayana state queued for jobs during a recent recruitment drive to send workers to Israel due to a labour shortage caused by the offensive in Gaza. Masons, painters, electricians, plumbers, and farmers were among those looking for work in Israel, with some willing to risk going into a conflict zone for the opportunity to earn five times more money than they would at home. Unemployment in India is a key concern. The urban unemployment rate is 6.6% and over 17% of workers under 29 are unemployed. Israel plans to bring in about 70,000 foreign workers to boost its construction sector, including workers from China and India. Around 13 million Indian nationals work overseas as labourers, professionals, and experts. India and Israel signed an agreement last year to allow more than 40,000 Indians to work in Israel in the nursing and construction sectors.
OTHER
UK's super-rich are not leaving for tax reasons, research says
The UK's super-rich have no plans to leave the country for tax reasons, according to research by experts at the London School of Economics (LSE). The study, which interviewed 35 members of the UK's richest 1%, found that none of them would consider moving to a tax haven due to the fear of being bored in “culturally barren” places. Sam Friedman, a sociology professor at LSE and the lead author of the research, said: "We need to challenge the prevailing assumption that if you tax the rich, they will leave. The rich are not only strongly embedded, but they are also acutely aware of the stigma of tax migration of being seen as unduly self-interested or moving to places others consider culturally barren and boring."  
 


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