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UK Edition
8th September 2025
 
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THE HOT STORY

Unions call for workers’ rights commitment

Unions are urging the government not to water down the Employment Rights Bill amid a reshuffle that has seen ministers who spearheaded calls for enhanced workers’ rights leave their positions. Unions have voiced concern after Angela Rayner resigned as Deputy Prime Minister and Justin Madders was removed as Employment Rights Minister. Unite general secretary Sharon Graham said that removing ministers who have worked with unions on the Bill "signals a move in the wrong direction." Paul Nowak, general secretary of the TUC, said that while the Conservatives and Lib Dems "are desperately trying to water this Bill down," Labour must stand firm and deliver legislation that will "level the playing field." TUC analysis shows that 4m people in the UK are in insecure work, including those on zero-hours contracts, agency workers and low-paid self-employed workers who miss out on key rights and protections. The Federation of Small Businesses (FSB), meanwhile, says the government reshuffle presents an opportunity to "fix the issues" with the Bill. Noting that 92% of employers it polled said they were worried about the legislation, the FSB said firms are "overwhelmed by the changes that are coming."
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CORPORATE

HR is not for wimps

The Financial Times' Pilita Clark says that as HR's remit relentlessly expands, "the profession is reaching a point where it is unusually prone to attack from employees and employers alike."
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HIRING

Job seekers surge as hiring stalls

The number of jobseekers in the UK is rising at its fastest rate since November 2020, according to a report by the Recruitment and Employment Confederation (REC) and KPMG. The surge comes as firms face economic challenges, including weak economic growth, rising unemployment and higher inflation. Jon Holt, chief executive and senior partner at KPMG in the UK, said: "It's unlikely we'll see a significant shift in recruitment patterns in the near term as businesses evaluate their investment strategies in response to policy commitments and the rapid pace of change brought by AI and new technologies." Neil Carberry, chief executive of the REC, commented: "All eyes are now on the Autumn Budget, in hope that the Chancellor won't do any further damage to the labour market with costs on hiring." He added: "For the economy to thrive, the Budget must recognise the need for investment in people."

Graduates face challenging job market

PwC UK will hire 200 fewer university leavers this summer, reducing its intake to 1,300 from 1,500, and attributing this to the economic slowdown and the increasing pace of AI adoption. The decision, representing a 13% annual drop in recruitment, occurs as broader research indicates graduates face one of the most challenging job markets in decades, with vacancies predicted to decline for a fourth consecutive year to their lowest level since 2012.
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HEALTH & WELLBEING

UK urged to go Dutch on the working week

The 4 Day Week Foundation, a campaign group calling for a shorter working week, says the UK should follow the example of the Netherlands, where more staff work fewer hours but productivity remains high. While more than half of Dutch women and nearly one in five men work fewer than 30 hours, data from the Organisation for Economic Co-operation and Development shows that staff in the Netherlands are more efficient in absolute productivity terms than workers in Germany, France and Britain. Joe Ryle, campaign director of the 4 Day Week Foundation, argues that the UK is "long overdue an update" when it comes to the shape of the working week.
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WORKFORCE

Pay growth hits four-year low

Pay growth in the UK has fallen to its lowest level in nearly four years, according to Incomes Data Research, dropping from 3.4% to 3% in the three months to July. This marks the slowest pace since December 2021. The decline is attributed to an increase in worker availability and a slowdown in hiring. The report indicates that higher-paid sectors experienced the most significant reductions in wage growth. The wage settlement data covers pay awards at large employers covering more than 680,000 workers, mainly in the private sector.

University staff consider strikes

Teaching and research staff at Lancaster University are set to vote on strike action amid proposed compulsory redundancies. The university plans to cut 400 full-time positions to save £30m in the face of rising costs and declining international student numbers. Dr Sunil Banga, branch president of the University and Colleges Union, said: "Compulsory redundancy is something that is completely unacceptable to our members."
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LEGAL

Judge: Online shopping at work is not a sackable offence

An employment tribunal has ruled that an accountancy administrator, named in the judgement as Ms A. Lanuszka, was unfairly dismissed for using her work computer for online shopping. The judge, Michael Magree, found her personal use was "not excessive" and noted that much of the time cited was spent on work-related tasks. Ms Lanuszka had been fired by her employer, Accountancy MK Services, after being monitored by spy software. The tribunal concluded there were no reasonable grounds for the worker's dismissal, and awarded her over £14,000 in compensation.

Gig economy crackdown will push up prices, warns Uber

Uber has warned that a Home Office crackdown on illegal gig economy work could drive up delivery costs for its Uber Eats service. The company said that new legislative requirements may increase compliance expenses. The crackdown comes amid concerns that takeaway apps have provided a route for undocumented workers, leading platforms such as Uber Eats, Deliveroo and Just Eat to roll out stricter identity and right-to-work checks.
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STRATEGY

Co-op cuts head office jobs

The Co-op is set to lay off 27 head office workers as part of a restructuring effort following a decline in its grocery market share, which fell to 5.2% in July. The retailer aims to modernise its commercial team to improve engagement and collaboration with suppliers. A spokesperson clarified: "This is not a cost-saving proposal; it's a cost-neutral move." The Co-op has faced challenges, including a cyberattack and recent controversies over sourcing goods from Israel.

Bodycare to close 32 stores

Health and beauty chain Bodycare is shutting 32 of its 147 stores and making 450 of its 1,500 staff redundant after going into administration. Warning of "challenging times" for the high street amid rising costs and reduced consumer spending, Nick Holloway, managing director at business management consultant Interpath, said: "Unfortunately for Bodycare, which was also contending with a significant funding gap and increasing creditor pressure, these challenges proved too difficult to overcome."
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OTHER

Tesla proposes $1trn pay for Musk

Tesla has set out plans for an incentive package that could see chief executive Elon Musk earn more than $1trn if he increases the electric car company's value to $8.5trn over 10 years. If he meets this target, Musk will receive new shares that would increase his stake in the company from nearly 16% to more than 25%. Dan Coatsworth, an investment analyst at stockbroker AJ Bell, said the pay package for Musk "beggars belief" and suggests that the board are "effectively saying ‘pick a number, any number’ to lock him in for as long as possible."
 
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