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UK Edition
2nd July 2025
 
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THE HOT STORY

Some workers' rights reforms pushed back

The government has set a new timeline for the Employment Rights Bill, pushing back several reforms by a year. Day-one protection against unfair dismissal, which was due to come into force next year, has been delayed until 2027, as has guaranteed flexible working and a ban on "exploitative" zero-hours contracts. Ministers say the roadmap will give businesses the "clarity and certainty they need to plan, invest and grow." Other measures set out in the Bill include removing the current limits on statutory sick pay, day-one paternity leave and unpaid parental leave rights. These are expected to come into force in early 2026. New whistleblowing protections are also due early next year, while October 2026 will see a ban on fire and rehire practices alongside rules to ensure that tips are allocated more fairly. Tina McKenzie, policy chair at the Federation of Small Businesses, said the timetable "sets out when waves of disruptive changes will now hit small employers," warning that "without listening to proposals from business to improve these reforms, the changes simply add complexity and risk to new hiring and existing employment." TUC general secretary Paul Nowak said the changes were "long overdue," adding that the new rights needed to be put in place "as soon as possible."
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LEGAL

Parental leave and pay for new parents to be reviewed

The amount of time off and pay new parents can get after the birth of a child will be looked at in a "landmark" review, the government says. Ministers say they want to modernise the system across paternity, maternity and shared parental leave, which campaigners say has been "overlooked for years." Business Secretary Jonathan Reynolds has said the current system is "really confusing," with eight different types of parental leave available, and "is not particularly generous or supportive compared to other countries." Reynolds said one in three fathers takes no paternity leave and "hardly anyone" takes shared parental leave. He said the review - which is expected to take 18 months - is needed because the parental leave system has not been reformed in decades, during which time both working habits and families have changed.

Council pay to be unified after six years

Council staff in Bournemouth, Christchurch and Poole (BCP) will be on the same pay structure for the first time since the three councils became one six years ago. Hundreds of employees doing similar jobs at BCP Council have been on different rates of pay since the unitary authority was formed in 2019. After years of negotiations, GMB and UNISON union members voted in favour of the latest proposals. BCP's resources and governance councillor, Jeff Hanna, said: "Currently, we still have staff being paid at several different rates for doing the same job and that cannot be acceptable. It has been a significant source of anxiety and concern for our workforce and it has understandably affected staff morale."
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WORKFORCE

Glasgow Subway staff plan TRNSMT strike

The Unite trade union has announced that Glasgow Subway staff are to strike from July 11-13. The action is timed to coincide with the city's TRNSMT music festival. More than 100 staff at the subway's operator, Strathclyde Partnership for Transport (SPT), have already walked out amid a dispute over working conditions. Industrial officer Andrew Brown said SPT "can fix this dispute at any point but they are refusing to do so." The union has said that understaffing issues have meant that staff routinely work up to 10 hours over their contracts and are called in at short notice to keep trains running, although SPT has said it is "currently operating at slightly above the required headcount for current service."
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CORPORATE

Santander snaps up TSB Bank in £2.9bn deal

Santander UK has acquired TSB from Banco Sabadell in a £2.9bn deal. The acquisition will add five million customers, £34bn in mortgages, and £35bn in deposits to Santander's portfolio, resulting in a combined customer base of 28m. Santander UK said the deal would make it the third largest UK bank in terms of personal current account deposits, behind Lloyds and NatWest. The deal is expected to close in the first quarter of 2026, pending regulatory approval. The tie-up has raised fears for staff and customers of job cuts and branch closures, The Guardian notes.

M&S to invest £300m as part of cyber attack recovery

Marks & Spencer has announced a £300m investment to upgrade nearly 40 stores nationwide in an effort to regain customer trust following April's cyber attack. CEO Stuart Machin also confirmed that M&S aims to fully restore its online operations within four weeks and stabilise business by August. Meanwhile, M&S chairman Archie Norman said Machin’s pay for the current financial year would reflect the cyber attack disruption, although it was too early to say how his total package would be affected.
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TECHNOLOGY

Robots set to outnumber humans in Amazon warehouses

Amazon is rapidly expanding its use of robotics, and now has over a million robots operating in its warehouses - nearly matching the number of human workers. Around 75% of Amazon deliveries involve robotic assistance, which the company says improves safety and reduces repetitive tasks for employees. Amazon is also increasing automation efficiency with artificial intelligence, including a new robot, Vulcan, that has a sense of touch. Robots are now 10% faster thanks to AI trained on inventory data, although internal concern is growing over AI replacing white-collar roles. CEO Andy Jassy has warned that the corporate workforce is likely to shrink in coming years due to increased automation. “They’re one step closer to that realisation of the full integration of robotics,” said Rueben Scriven, research manager at Interact Analysis, a robotics consulting firm.
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ECONOMY

Confidence falls among business leaders

Analysis from the Institute of Directors shows a sharp decline in confidence among business leaders, with the latest Economic Confidence Index dropping to -53 in June 2025 from -35 in May. This fall reflects growing concerns over recent tax hikes, particularly the increase in employer National Insurance. The index saw investment intentions drop significantly from 0 in May to -10 in June, while headcount expectations also declined, from -1 to -10. IoD chief economist Anna Leach said: "Business leaders are finding economic conditions increasingly challenging," adding that "the message coming through is that the tax increases unleashed on business have already undermined the industrial strategy’s ambition to make the UK the best country to invest.”
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HEALTH & WELLBEING

Obesity 'difficult to alter' after age five

Researchers from the UK's Academy of Medical Sciences and its Italian counterpart have published a new report calling for more action to tackle early signs of childhood obesity, warning that trajectories on weight "appear difficult to alter after the age of about five," while the period from pregnancy through the child's second birthday represents an "important window of opportunity to set children on a healthy trajectory for life." The report calls for more support for women who are pregnant or considering having children, noting that childhood obesity "has become an urgent public health challenge that is affecting lives today and storing up problems for the future."
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INTERNATIONAL

Qantas pilots threaten industrial action

Qantas pilots are set to launch low-level industrial action after more than 90% voted in favour of protected action against what they describe as a "lowball" pay offer. More than 100 Express Freighters pilots, represented by the Transport Workers Union (TWU), Australian Federation of Air Pilots (AFAP), and Australian and International Pilots Association, are demanding pay increases to match industry standards and improvements to work-life balance. The unions have expressed disappointment over Qantas's refusal to enhance its offer after six months of negotiations. "Industrial action is always a last resort," said TWU National Secretary Michael Kaine, as he highlighted the poor conditions faced by workers. Qantas has said that it is negotiating in good faith and has contingency plans in place to ensure that freight operations remain unaffected.

Arrest and indictments in North Korean 'IT worker' scheme

The U.S. Department of Justice (DOJ) and FBI have announced an arrest and indictments related to North Korea's "IT worker" programme, which saw North Koreans secure remote IT jobs at over 100 US companies. The North Koreans allegedly stole around $900,000 in cryptocurrency from a Georgia-based firm and sensitive data from a California defence contractor. Zhenxing “Danny” Wang and Kejia Wang, both US citizens, were indicted as part of the operation, according to the DOJ. Zhenxing Wang was arrested in New Jersey, while Kejia Wang remains free. The two men, along with four other unnamed US “facilitators,” assisted the North Koreans by procuring and operating laptops used by the overseas workers, created financial accounts to receive money earned by the workers to be sent back to North Korea, and created shell companies to make the workers appear more authentic, Reuters reports.

Dubai commits to four-day week after trial success

Dubai's 2024 pilot of a four-day workweek for civil servants has reportedly led to significant improvements in happiness, productivity, and workplace morale, prompting calls for similar practices in the private sector. The Dubai government will implement the "Our Flexible Summer" initiative across all 21 government entities from July 1 to September 12, 2025, offering two flexible working options. Abdullah Ali bin Zayed Al Falasi, Director-General of the Dubai Government Human Resources Department, said: “This isn't just a shift in working hours - it's a reflection of the government's evolving mindset.” The initiative aims to enhance work-life balance and support families during summer holidays, aligning with Dubai's public sector transformation strategy and the UAE's “Year of Community” campaign. While currently limited to government agencies, the initiative reflects a broader push for flexible work models in Dubai's private sector.

Work-life balance tops employee priorities in Singapore

According to the latest Employer Brand Research Report by Randstad Singapore, good work-life balance has emerged as the most valued trait among employees for the third consecutive year, surpassing salary and job security. David Blasco, Randstad's country director for Singapore, said: “With salary packages and benefits now highly competitive, work-life balance is emerging as a crucial differentiator for both attracting and keeping top talent.” The survey, which included 2,522 working-age adults, revealed that 41% of respondents seeking new jobs are motivated by the desire for better work-life balance. Additionally, 44% of millennials prioritise work-life balance as their main motivation at work, while Gen Z focuses more on career growth. The findings highlight the importance of creating a positive work environment to enhance employee engagement and reduce turnover.
 
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