THE HOT STORY

Workers' rights enforcement agency 'will use persuasion'

The Fair Work Agency (FWA) will focus on persuading employers to comply with employment reforms rather than using its enforcement powers, according to chairman Matthew Taylor. He said that the threshold for deploying these powers is "quite high" and most breaches of employment law are unintentional. Taylor stressed the need for proportionality in enforcement, saying: "In a perfect world you minimise the amount of enforcement you have to do because you maximise the amount of compliance you achieve by educating employers." He added that enforcement powers such as entering workplaces or homes would be used sparingly. The agency, which brings together enforcement bodies, will target sectors with higher exploitation risks, such as construction and social care.

The Times

ARTIFICIAL INTELLIGENCE

5 skills to develop in your teams for a post-AI workplace

We’ve all seen how AI’s capabilities have developed. Over the last few years, the technology has grown at a rate comparable to a famously voracious caterpillar. But, as more and more skills get snapped up by AI, those skills subsequently become less desirable among human employees.

One day you might be writing a job description for a new hire, only to discover half of it’s been made obsolete a month later.

So when you’re designing training & development programs for your existing employees, what’s actually worth the time and effort to work on?
What human skills will survive AI’s journey to becoming a beautiful butterfly?

Read more at hrtechnologies.co.uk

WORKFORCE

National Employers make 3.30% pay offer

The National Employers for local government services has offered council workers in England, Wales and Northern Ireland a one-year 3.30% pay increase from April 2026, with the proposed increase representing additional costs to councils of just under £870m. Cllr James Lewis, chair of the pay body, said the National Employers "are acutely aware of the additional pressure this offer will place on already hard-pressed council finances as it would need to be paid for from existing budgets. However, they believe their offer is fair to employees given the wider economic backdrop." Unions have responded critically, with Mike Short from Unison saying it is "disappointing that the union’s fair and affordable pay claim has not been met," while Unite national officer Clare Keogh criticised what she described as "yet another real terms pay cut."

Daily Mirror

The I

LEGAL

City lawyer suspended

Raymond John McKeeve, a former partner at law firm Jones Day, has been suspended for two years after advising a client to "burn" a secure messaging system during a dispute with Ocado. The High Court previously found him guilty of criminal contempt for intentionally destroying evidence in a corporate espionage investigation. McKeeve was fined £25,000 and ordered to pay £600,000 in costs. He expressed his remorse, saying: "I hope you will see this was an isolated incident of abject stupidity . . . I am heartbroken that the career I have pursued has effectively been, through my own actions, taken away from me." The Solicitors Disciplinary Tribunal also imposed an additional £20,000 in legal costs.

The Times

REGULATION

Bank of London fined for 'failing to act with integrity'

The Prudential Regulation Authority (PRA) has fined the Bank of London and its parent company, Oplyse Holdings, £2m for failing to act with integrity and misleading the regulator about its finances. This marks the first time the PRA has imposed a fine for integrity breaches. Although the PRA deemed the violations warranted a £12m penalty, it reduced the fine due to potential financial hardship for the bank. Sam Woods, deputy governor for prudential regulation, commented: "Trust in banking in the UK requires integrity and open communication." The bank has acknowledged the findings and is working on remediation efforts.

Financial Times

City AM

The Standard

ECONOMY

Manufacturers face soaring costs amid Middle East conflict

UK manufacturers are experiencing their largest monthly cost increase since 1992, driven by the ongoing Middle East conflict. The S&P Global Purchasing Managers' Index (PMI) indicates that activity has slowed to its lowest level in six months. Companies are raising prices at the fastest rate since April 2025, while employment has fallen for the 18th consecutive month. Chris Williamson, chief business economist at S&P Global Market Intelligence, said: "Output growth across manufacturing and services has slowed to a crawl as companies blamed lost business directly on the events in the Middle East."

Sky News

RISK

Ministers urged to block FCA contract over data concerns

The Liberal Democrats have urged the government to halt a contract with US tech firm Palantir over concerns regarding access to sensitive financial data. The Financial Conduct Authority (FCA) has engaged Palantir to use its AI systems to combat financial crime. Critics worry about potential data misuse and the implications of relying on foreign tech firms. Daisy Cooper, the Liberal Democrat's Treasury spokesperson, said: "Awarding a contract for sensitive UK financial data to a Trump-aligned tech giant seems like a huge error of judgement." Fellow Lib Dem MP Martin Wrigley, a member of the Commons Technology Committee, said the FCA deal should be "stopped before it's started." The Green Party's Siân Berry, meanwhile, has urged the government to "step in immediately and protect our national and economic security by blocking this contract award." An FCA spokesperson said: "Criminals aren't slow to use technology to cause harm – we need to stay ahead of them. We can run a trial to helps us do that while maintaining strict data controls."

The Guardian

INTERNATIONAL

Americans' outlook on job market turns increasingly pessimistic

According to a Gallup survey, Americans' perceptions of the US job market have become increasingly negative, with only 28% of workers believing it is a "good time" to find a quality job. This marks a significant decline from mid-2022, when 70% felt optimistic. The survey, conducted in late 2025, highlights a stark divide in sentiment based on education, with just 19% of workers with a college degree thinking that now is a good time to find a quality job, while 35% of workers without a college degree are optimistic. The Gallup results come as government data shows that overall hiring is at its weakest level in more than a decade.

U.S. News

Russian steelmaker MMK to cut management jobs

Russian steelmaker MMK plans to cut 10% of its management personnel and pause new investment amid diminishing demand for metals from the firm's major customers - Russia's construction, energy, automotive and machinery manufacturing sectors. "The metals industry is the most sensitive 'barometer' of the economic situation, and today the state of the industry is quite challenging," MMK's CEO Pavel Shilyaev said. "We are forced to make a decision to reduce the number of staff considering the current capacity utilisation of production facilities."

Reuters

Brazil's new law to protect minors online

Brazil has launched a new law aimed at enhancing online safety for children and teenagers. The Digital Statute of Children and Adolescents requires users under 16 to link their social media accounts to a legal guardian. The legislation prohibits addictive features and mandates robust age verification mechanisms. President Luiz Inácio Lula da Silva said: “Enough of tolerating exploitation, sexual abuse, child pornography, bullying, incitement to violence and self-harm just because it happens in the digital environment.” Guilherme Klafke, a law professor at Getulio Vargas Foundation, a think-tank and university, said the new framework “places more responsibility on those who offer digital products and services that may be accessed by children and adolescents.”

U.S. News

OTHER

Vet prescription fees to be capped

Written prescription fees from vets will be capped at £21 and practices will have to publish price lists for services, the competition watchdog has said. The Competition and Markets Authority (CMA) also said a price comparison website would be introduced to help boost competition and drive down prices faced by consumers. The measures come after an in-depth investigation by the CMA, which found prices had been rising at nearly twice the rate of inflation. The reforms will start to come into force later this year. Vets will also have to reveal if they are part of a large group amid concerns that ownership of practices was unclear. Martin Coleman, chair of the independent Inquiry Group, said: "Too often, people are left in the dark about who owns their practice, treatment options and prices – even when facing bills running into thousands of pounds . . . Our measures mean it will be made clear to pet owners which practices are part of large groups, which are charging higher prices, and for the first time, vet businesses will be held to account by an independent regulator."

GOV.UK

BBC News

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