Human Times

European Edition

3rd July 2026

THE HOT STORY

German workers banned from taking sick leave without a medical note

German chancellor Friedrich Merz has proposed new rules requiring workers to obtain a sick note in person on their first day of illness. The change aims to enhance productivity in Germany's stagnant economy. "The number of sick days is too high," Merz said. "We are creating a set of tools that will enable those involved, both employees and companies, to correct this." The new rules would replace a system whereby employees can get a note by phoning a doctor and do not need to do so until their third day of work. Frank Werneke, the head of the services sector union Verdi, said Merz was creating "a culture of distrust of employees." Doctors also oppose the change. "Our practices would be flooded with patients who don't need in-person care and would be better off in bed," said the German Association of Family Physicians. Meanwhile, Merz announced a €10bn tax cut for middle-class families to stimulate the economy and support his coalition government. Families earning €60,000 annually will receive over €600 in tax relief. This will be funded by raising the top tax rate from 45% to 47%.

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HIRING

Women taking obesity drugs 'more likely to land a job'

Women taking weight-loss drugs are more likely to land a job, according to research by Harvard University economics professor Rebecca Diamond, who found that the employment rate for women who weren't working before taking the medicine rose after about eighteen months. Those women who were already working weren’t more likely to get a better job, she said. “What does not change for women is equally informative. The arrangements that do not respond are the ones already in place, where any first impression occurred long ago and where weight is one characteristic embedded in a much richer stock of information,” Diamond concluded. Single women taking the medication were also more likely to get married or start living with a partner, the research found.

Bloomberg

Amazon commits $1bn toward new unit for embedded AI engineers

A new division in Amazon Web Services' cloud unit will employ engineers to embed with clients to help them more quickly and efficiently adopt AI software. Amazon is to commit an initial $1bn with the goal of sending five to six pods of the so-called forward-deployed engineers to customers for 45-day periods, said Francessca Vasquez, AWS vice president of frontier AI engineering and services. “We have a ton of demand for customers who are asking for our help to really drive agentic AI patterns in their workflows,” Vasquez said. Aaron Levie, the CEO of content management company Box, said in a LinkedIn post earlier this year that ‌forward-deployed engineers ⁠are “about to become one of the most in-demand jobs in tech."

Reuters

WORKFORCE

Strike to disrupt operations in Dutch industrial sector

The FNV labour union has announced a strike for today, targeting major Dutch employers including ASML and DAF Trucks. The union wants the government to withdraw its austerity plans, which include reducing unemployment benefits from two years to one and increasing the retirement age. The planned two-hour work stoppage will coincide with a protest in Eindhoven. The FNV said: "If the Cabinet refuses to drop its planned budget cuts, these short stoppages will transform into widespread, full 24-hour national strikes." This latest action follows previous protests against the government's controversial social security cuts.

NL Times

LEGAL

Former Clifford Chance lawyers fight firm over $5.8m in pay

Two former Clifford Chance lawyers have sued the firm, claiming it is improperly trying to claw back nearly $5.8m in pay under a partnership agreement before the pair left this year for Sidley Austin. Clifford Cone and Michael Sabin said in their lawsuit filed in Manhattan district court that UK-based Clifford Chance was trying to claw back pay as a “punitive” and “anti-competitive” response to their January departure to a rival. Sabin and Cone asked the court to rule that New York law and not the laws of the UK should govern the resolution of the dispute. New York prohibits law firm partnership provisions that impose financial penalties requiring departing partners to return earned compensation when they join a competitor.

Bloomberg Law

Reuters

CORPORATE

Foreign bids help drive UK targeted M&A to new highs

Britain is on track to outstrip all previous records for dealmaking this year, as foreign bids for UK companies - including for Intertek, Schroders and Unilever's food unit, as well as US-listed Ingredion's offer for Tate & Lyle - puts the total value of offers for the country's companies 210% ahead of this time last year to more than $231bn so far. "We are continuing to see opportunistic, strategic consolidation, with clients pursuing large and complex deals that move the needle and which will make a material difference to their business," said Dominic Ross, partner at Clifford Chance, who observed that the UK is a predictable landscape for takeovers. "The UK is a tried and tested market," he said.

Reuters

RISK

Right-wing extremists 'remain the greatest threat to German democracy'

The Federal Office for the Protection of the Constitution (BfV), Germany’s domestic intelligence agency, has said right-wing extremists remain the greatest threat to German democracy and their number increased by more than 8,000 to 58,700 last year. The report also noted that the number of individuals involved in left-wing extremism grew by 4,200 last year, reaching 42,200, and there was also a slight increase in the number of individuals involved in Islamism or "Islamist terrorism," to 28,645. German democracy was under "practically permanent attack" from both inside and outside, said Sinan Selen, the head of the agency. Intelligence activities against Germany originated primarily from Russia, China and Iran, it said.

Financial Times

BBC News

ECONOMY

Eurozone inflation falls below 3%

Eurozone inflation fell to 2.8% in June, down from 3.2% in May and below economists' expectations, according to official figures. Core inflation and services inflation also eased, supporting efforts by the European Central Bank to contain price pressures following the conflict involving Iran. Michael Field, chief equity strategist at Morningstar, said investors would welcome signs that inflation concerns were easing.

Financial Times

Reuters

Financial Times

INTERNATIONAL

Australia considers sweeping reforms for Big Four accounting firms

The Australian government is considering major reforms to Deloitte, EY, KPMG, and PwC, following a series of high-profile misconduct scandals, including proposals to separate audit and consulting businesses, bring firms under the oversight of the Australian Securities and Investments Commission, cap partnership sizes, and require mandatory audit firm rotation. The Treasury said the measures are aimed at restoring public trust and addressing conflicts of interest exposed by the PwC tax leaks scandal and allegations involving KPMG. The firms said they broadly welcome the consultation and support reforms that strengthen governance, transparency, auditor independence, and confidence in the profession.

Reuters

Guatemala's new attorney general vows to dismantle predecessor's 'repressive' legacy

Gabriel García Luna, Guatemala's new attorney general, has committed to dismantling the "repressive and vengeful" administration of his predecessor, Consuelo Porras. Porras faced international sanctions for obstructing anti-corruption efforts and persecuting justice officials. “Everyone has a concept of a Public Prosecutor's Office that can be used in a certain way, and we can no longer have that,” García Luna said. “It is not a political entity, nor a political weapon for anyone, and I do not intend to repeat the actions taken in previous administrations.” He has launched a review of cases involving alleged abuses during Porras' tenure. His predecessor had “formed a parallel government that destroyed the prosecutorial profession, mainly by dismissing between 800 and 1,000 employees during her eight-year tenure,” García Luna said.

AP News

Africa EV firm accused of torturing employees

Four employees of Spiro, Africa's leading electric motorbike company, have accused managers in Uganda of severe physical abuse as punishment for alleged poor performance. The Uganda Law Society has filed a complaint stating that the employees were beaten, locked in a room, and forced to write confessions. Spiro said in a statement that it "has a zero-tolerance policy for torture, harassment and any other human rights violations . . . We take these allegations extremely seriously and have initiated an internal review. Spiro Uganda is fully cooperating with the competent authorities to ensure a fair, independent and lawful investigation."

France 24

Korea's AI megaproject faces workforce hurdles

Korea's government has announced three major megaprojects aimed at boosting the semiconductor and artificial AI sectors, backed by over 1,350 trillion won ($872bn) in investments. However, experts warn that securing a skilled workforce and necessary infrastructure outside the Seoul area poses significant challenges. "Moving the existing (engineering) workforce is practically the only way to maintain the required level of expertise because these are new factories built by companies whose core manufacturing operations are already concentrated in the Seoul metropolitan area," said Lee Byung-hun, an electrical engineering professor at Pohang University of Science and Technology. "The conditions must be attractive enough for employees to relocate, and companies will have to establish a clear system that gives workers a compelling reason to move."

The Korea Times

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