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15th April 2024
 
THE HOT STORY
Lloyd's of London chair says getting staff into the office on Fridays is a 'lost cause'
Lloyd's of London chairman Bruce Carnegie-Brown says trying to persuade staff to work in the office on Fridays is a “lost cause.” While Lloyd’s says it has seen progress in efforts to “get Monday back,” Mr Carnegie-Brown said: “I'd love to recover a bit more of Friday but I think it's a lost cause.” He added that while he did not “mind too much” if attendance rates do not entirely return to pre-pandemic levels as some work can be done digitally and remotely, “there's also a complex aspect to insurance” and some elements require bespoke solutions that are better handled in person. Transport for London data analysed by the Centre for Cities think tank shows that there are notably fewer journeys through stations in the Square Mile on Fridays.
LEGAL
Offering older colleagues a chair could be age discrimination
Offering a chair to an older colleague at work could count as age discrimination, according to an employment tribunal. The ruling came in the case of a 66-year-old recycling plant operative who sued for discrimination after a colleague asked him if he wanted to sit down during his shift. Although the claim was dismissed, the tribunal agreed that the move was "unwanted conduct" that could have been discriminatory. The judge said the older employee could conclude that he was being treated differently and disadvantageously. The employee believed that he was being singled out as no one else at the site used chairs. The tribunal heard that the employee's boss had offered him a chair due to concerns about his health, not his age.
DIVERSITY, EQUITY & INCLUSION
Firms pull up a chair in shift to gender-neutral language
Over the past five years, more than half of FTSE 100 companies have replaced 'chairman' with 'chair' in a shift towards gender-neutral language. The move represents changing attitudes in the City and comes amid increased scrutiny of representation on corporate boards. In 2019, 98 FTSE 100 companies used the title 'chairman,' even when the head of their board was a woman. However, analysis of company results, announcements and filings over the past five years has shown 62 FTSE 100 businesses now use 'chair.' Only 32 still exclusively refer to the head of the board as 'chairman,' while six companies use both 'chair' and 'chairman.' The male-dominated finance and insurance industry is more likely to retain the use of "chairman," analysis shows.
WORKFORCE
Record number of students quit university due to rising living costs
According to statistics from the Student Loans Company, a record 41,914 undergraduate students quit in the year to August 2023, equivalent to one in 37 of the student population. Research from the Higher Education Policy Unit reveals that seven in ten students have considered leaving higher education since starting their degree, with two-fifths citing rising living costs. The financial gap between student income and expenditure needed to complete a degree comfortably stands at £621 per month. The data was published ahead of this week's National Scholarships Week, which aims to highlight the availability of scholarships for undergraduate study. So far, National Scholarships Week's corporate funders have pledged £800,000 in new funding to be split across 75 scholarships. While the average award is £14,000, some grants pay up to £42,000.
Asda fails to fix payroll issues
Asda is facing a payroll crisis that has left thousands of workers out of pocket. An internal systems update resulted in almost 10,000 workers receiving incorrect payslips, with some missing hundreds of pounds. Store managers were only permitted to make £200 payments to affected staff, leaving workers up to £500 out of pocket. Nadine Houghton, national officer at the GMB union, said: “Paying staff properly is a basic for any employer," adding: "Cost-cutting by slashing staff who processed wage errors means this huge backlog still isn't resolved and the company are unlikely to have resolved this by next payday.”
Universal Credit 'will need to change' to tackle long-term sick
The Resolution Foundation think tank has warned that Universal Credit is not ready to support the growing numbers of people who are out of work due to long-term ill-health. The number of claimants out of work due to ill health has almost doubled since 2013 to 2.3m, the think tank says, and economist Alex Clegg says the system "will need to change to tackle Britain's new challenge of long-term sickness," along with other measures in the NHS, education system, and in labour market policy. The think tank has also raised concerns over the impact of the introduction of Universal Credit on the severely disabled - who are set to lose out by an average of £2,800 by 2024/25 in comparison to the previous benefits system.
Arrival staff face recall of £30m
Employees who lost their jobs at Arrival, the bankrupt electric vehicle company, may have to repay £29.6m used to buy share options that are now worthless. The company's US-listed shares crashed, leading to the collapse of its two UK divisions. Administrators at EY are seeking to recover the funds for creditors, and those who borrowed money to buy shares face repayment by 2027. Most of the employees who borrowed money have already left the business. Arrival owed almost £200m when it appointed administrators.
HIRING
One in three businesses struggle with staff shortages
A study by recruitment firm Indeed Flex shows that one in three businesses is understaffed at least once a week due to a lack of available employees. The research revealed that frequent employee sickness is a major issue for companies experiencing staff shortages. Difficulties in recruiting enough people and staff unwillingness to work certain days or hours were also cited as common challenges. One in four businesses has struggled to fill vacancies this year, leading to an increase in the employment of temporary workers.
New partnership aims to address teacher recruitment crisis
The Department for Education has partnered with the Scout Association to inspire young teachers. The collaboration aims to give 14 to 18-year-old Scouts the skills and knowledge needed to consider a career in teaching. While critics have labelled it a gimmick, the initiative is not intended as a panacea for the teacher recruitment crisis. The charity Now Teach has been leading efforts to attract more career-changers to teaching. Teacher and writer Harry Hudson says career-changers bring fresh perspectives and enhance the status of the profession. "We need to move beyond the old-school parochialism that says you're either born a teacher or never a teacher," he adds.
INTERNATIONAL
Portugal to implement tax cuts for middle class worth €1.5bn
Portugal's new minority government, led by Prime Minister Luis Montenegro, plans to approve tax cuts worth €1.5bn for the country's middle class. The government aims to reduce income tax rates by 0.5 to 3 percentage points from 2023 levels, with a focus on the middle class. Montenegro believes that high taxes hinder investment and limit job creation. According to the OECD, Portugal has the ninth-highest tax burden on workers' income among OECD member countries. Analysts expect Montenegro to secure opposition support for his urgent measures, including tax cuts and wage hikes for certain professions. However, the stability of his government remains uncertain, as it relies on the support of either the far-right Chega or the centre-left Socialists. Montenegro's goal is to achieve balanced budgets and stimulate economic growth, aiming for a growth rate close to or above 3.5% by the end of the four-year term. The economy expanded by 2.3% in 2023, a significant slowdown from the previous year. The Bank of Portugal forecasts 2% growth in 2024.
India emerges as global hiring hotspot
Wealth surge, China pivot, and a fear of missing out have made India a new global hiring hotspot. The employment market is booming, with stories of ghosted employers, million-dollar trading jobs, and private bankers demanding up to a 50% pay hike. Signs of expansion are everywhere, with international firms like Optiver and Citadel Securities opening offices in Mumbai and Gurugram. Local firms like ICICI Securities are also growing rapidly. India's economy is expanding at over 7% per annum, and the government is making it easier to do business. The market is especially hot in the wealth industry, with private bankers and wealth managers seeing significant pay increases. However, there are doubts about the sustainability of the boom and concerns about the rising pay scales. Despite this, India's moment as a global hiring hotspot seems to have arrived.
OTHER
Ministers urged to act over ‘persecution' of carers who broke earnings rules
The government has been urged to launch an inquiry into the prosecution of unpaid carers who were chased by the Department for Work and Pensions (DWP) after unwittingly breaching earnings rules. Former Work and Pension Secretaries David Blunkett, Alan Johnson, and Iain Duncan Smith have criticised the DWP's treatment of benefit recipients' who have made minor mistakes. In some cases, unpaid carers have been pushed into debt, given criminal records, and forced to sell their homes due to the DWP's actions. MPs are planning to question the Welfare Minister, Mims Davies, on the issue of carer's allowance overpayments. Ministers are under pressure to explain why the DWP is still failing to spot overpayments despite promising to tackle the issue five years ago.
 


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