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UK Edition
17th February 2025
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THE HOT STORY
UK HR chiefs push back on DEI shift
At a recent dinner for HR leaders from major UK companies, there was a palpable sense of anger regarding President Donald Trump's actions against diversity, equity, and inclusion (DEI) in the US, writes the Sunday Telegraph's Lucy Burton. Attendees expressed their strong resolve, with one saying: "We need to take a stand against this." While US firms are retracting their DEI initiatives, British HR chiefs are committed to maintaining their diversity targets. Tensions are rising between US and UK branches of global companies, with some UK managers opting to rebrand DEI efforts as "culture and inclusion" to continue their work. Heeral Gudka, a consultant on diversity strategies, noted that the current climate provides boards with "a gold-plated reason" to cut DEI costs. Despite the challenges, many UK executives are determined to make independent decisions regarding DEI, regardless of external pressures.
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WORKPLACE
The human resources reckoning
The FT's Emma Jacobs says HR departments are needed more than ever post-pandemic, being asked to manage the fallout "When extraordinary times place unusual pressures on an organisation’s staff."
REMOTE WORKING
Rise of remote working hits school attendance, Ofsted chief says
Ofsted chief inspector Sir Martyn Oliver has argued that the rise of remote working has helped exacerbate poor school attendance figures. Sir Martyn said that if "my mum and dad were at home all day, would I want to get up and leave the house, knowing that they were both there? I would be tempted to perhaps say, 'Can I not stay with you?'". Seeing his own father leave the house early in the morning, he said, set an "expectation" that you should "put your shoes on, put your school uniform on and go out the door and go to school; go to work." He also pointed the finger at Westminster, saying while Fridays have traditionally been the worst day for school attendance, "I look at Westminster and I see the place clearing out on a Thursday night very often."
Civil servants allowed to ‘work from the beach'
Last year, Whitehall departments approved over 2,300 requests for civil servants to work from abroad, spanning 101 countries, including popular destinations like Brazil, Australia, and Barbados. The Business Department was the most accommodating, granting nearly 500 requests, while Angela Rayner's local communities department approved 437. The data, obtained through freedom of information requests, highlights concerns regarding public sector productivity, which remains 8.4% lower than pre-pandemic levels. A government spokesman said: “We expect most civil servants to spend the majority of time working from the office,” stressing that overseas work is only permitted under exceptional circumstances.
DIVERSITY, EQUITY & INCLUSION
NHS hospitals commit to BAME quotas
Thirty NHS trusts have joined a new programme aimed at promoting diversity by requiring boards to include a minimum number of BAME directors to achieve gold status. The initiative is part of an anti-racism awards scheme designed to address racial disparities within the healthcare system. The programme seeks to ensure that "boards reflect the communities they serve," thereby fostering inclusivity and representation at the highest levels of decision-making. But the Health Secretary Wes Streeting has warned against “box-ticking” exercises arguing: “Jobs should always be given on merit, but I refuse to believe a lack of talent explains the absence of black leaders in the top NHS jobs.”
HIRING
London recruitment struggles amid tax hike
According to a survey by KPMG and the Recruitment and Employment Confederation (REC), permanent placements fell for the sixth consecutive month in January. Anna Purchas, senior partner at KPMG UK, said: “It's been a challenging start to the year for recruitment in London.” The survey highlights employers' hesitance to invest due to economic uncertainty and the impending changes to workers' rights. With a growing pool of available staff and fewer roles, pay growth rates are also easing.
WORKFORCE
Job losses loom as tax raid hits
Companies are preparing to make redundancies in response to Rachel Reeves's £25bn tax raid. A survey by the Chartered Institute of Personnel and Development (CIPD) indicates that a quarter of businesses plan to cut jobs, the highest level in a decade, excluding the pandemic. Retail and hospitality sectors are expected to be the hardest hit as the National Insurance rate rises from 13.8% to 15%. Peter Cheese, chief executive of the CIPD, said the survey showed “the most significant downward changes in employer sentiment we’ve seen in the last 10 years” barring the pandemic, with the biggest impact being felt in “the everyday economy sectors, such as retail and hospitality, which employ large numbers of people.”
MPs accused of making staff’s lives miserable
Recent evidence presented to a House of Commons committee reveals that many staff members in Parliament feel "miserable" due to poor management by some MPs. The GMB union said this often leads to high staff turnover and significant costs for taxpayers. The union said: “While many MPs are brilliant employers . . . for those who aren't, it can make work miserable for staff.” The lack of career progression and reliable pay increases can also contribute to a toxic work environment, and complaints of low-level bullying are common. The Modernisation Committee, chaired by Cabinet Minister Lucy Powell, is exploring ways to improve the working conditions in Parliament.
UBS offers sabbatical perk to former Credit Suisse staff only
Credit Suisse employees in the UK who transferred to UBS when the two banks combined are still eligible for paid sabbaticals unlike their colleagues, highlighting disparities in staff benefits.
MANAGEMENT
Gen Z has turned against taking middle management roles
The FT's Anjli Raval considers a recent survey which found that middle management is losing its appeal, especially with the youngest cohort of employees, who see it as a thankless slog. 
LEGAL
Homophobic bullying claims made against Vivienne Westwood CEO
An independent investigation has upheld five allegations against Carlo D'Amario, chief executive of Vivienne Westwood Ltd, regarding homophobic bullying and discriminatory behaviour. The investigation, led by employment barrister Paul Livingston, found that D'Amario likely breached employment law. Despite the findings, D'Amario remains in his position, earning a six-figure salary. The investigation was prompted by a grievance from an employee who reported D'Amario's use of homophobic slurs and bullying tactics. One witness said: “D'Amario was about as politically incorrect as you could ever get.” The report also noted that D'Amario's behaviour constituted harassment under the Equality Act 2010. While the company's equality policy was deemed “excellent,” the lack of action taken against D'Amario raises questions about the commitment to these values.
Court clash over Boohoo co-founder
Boohoo co-founder Jalal Kamani faces a £20m lawsuit from his former colleague and romantic partner, Leanne Holmes. She alleges that Kamani manipulated her and created an unhealthy office culture, claiming he engaged a "spirit guide" to persuade her to leave their joint venture, I Saw It First. Holmes described this episode as "deeply disturbing and distressing," saying that it was part of a broader culture of discrimination against women. Kamani denies all allegations, saying he hired a "life coach" and that Holmes was an "enthusiastic participant" in office gatherings. The trial, set for April, is expected to reveal more about the workplace environment under Kamani's leadership, which Holmes claims was "unnecessarily wasteful" and discriminatory.
INTERNATIONAL
Amazon struggles to implement back-to-office policy
Amazon is facing challenges in implementing a back-to-office staff policy due to a space crunch. The company has faced issues with a lack of desks in many offices, including in Houston, Atlanta, and New York City. Workers assigned to some locations are still waiting to hear when they can go to the office full-time. Others who return for five days find themselves jockeying for parking, and for private rooms to make video calls. Amazon has been a vocal advocate for workers to return to the office, saying that collaborating, brainstorming, and inventing are simpler and more effective. “If it’s not for you, then that’s OK. You can go and find another company if you want to,” Amazon Web Services chief executive Matt Garman said last October. “But for us, that’s what we’ve decided is the best way to operate our company.”
 


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