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UK Edition
29th October 2025
 
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THE HOT STORY

Peers defy government on workers' rights

The House of Lords has resisted reforms to the Employment Rights Bill, resulting in multiple defeats for the government. Peers inflicted defeats on zero-hours contracts, unfair dismissal claims from day one, industrial action ballot thresholds and union members paying a political levy. Moving the zero hours amendment, Lib Dem Lord Fox said: "We share ministers' aims on making sure that every employee has the right to guaranteed hours moving from zero-hours, guaranteed hours." But he added: "For the smaller and medium-sized employer it is an added burden that doesn't need to be there if the employee does not wish to leave zero hours."
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LEGAL

Employers face prison for illegal hires

Ministers are considering new penalties for employers who fail to conduct right-to-work checks. Under proposed plans, employers could face up to five years in prison or fines of £60,000 for each illegal worker. The government aims to extend checks to casual and subcontracted workers, closing existing loopholes. Over 11,000 raids on takeaways, beauty salons and car washes were conducted last year, marking a 51% increase. Home Secretary Shabana Mahmood said: "Illegal working creates an incentive for people attempting to arrive in this country illegally. No more."
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STRATEGY

Amazon set to cut corporate jobs

Amazon has announced that it will reduce its global corporate workforce by "approximately 14,000 roles." Reports had suggested that the firm was planning to eliminate up to 30,000 corporate jobs globally, representing about 10% of its workforce. The decision, led by CEO Andy Jassy, is part of a cost-cutting strategy following extensive hiring during the pandemic. The layoffs will affect various divisions, including human resources and Amazon Web Services. Jassy noted that generative AI will alter job requirements, necessitating fewer staff in some roles. Sky Canaves, senior analyst at eMarketer, said: "This signals that Amazon is realising enough AI-driven productivity gains within corporate teams to support a substantial reduction in force."
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TRAINING & DEVELOPMENT

Kirkland & Ellis trains lawyers on communication style after investor tensions

Kirkland & Ellis has given its lawyers training on communication style as it tries to combat a reputation for uncooperative behaviour in negotiations between its private equity clients and their investors.
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WORKFORCE

Union to ballot teachers on strike over class contact time

The NASUWT teaching union has announced that it will ballot its members over the Scottish Government's failure to deliver the SNP's manifesto commitment to reduce class contact time. National official for Scotland Mike Corbett said teachers are "arguably worse off in terms of workload" than they were in 2021 when the commitment was made. "A reduction in class contact time is as needed now, if not more so, than in 2021", he said, and it is "regrettable that we have been forced to declare a trade dispute and move to a ballot in order to try to force the government to give teachers the working conditions it itself acknowledges they require to do the job effectively."
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HIRING

Iceland launches 1,800 Christmas jobs

Iceland has launched its 2025 Christmas recruitment drive, creating 1,800 seasonal roles across the UK. The positions include delivery drivers and retail assistants, available in both full-time and part-time capacities. To prepare staff, Iceland has opened a 24-hour depot gym featuring Stairmasters and training bags filled with festive products. Paul Dhaliwal, Iceland's chief commercial officer, stated: "Our drivers are the unsung heroes of Christmas," as he highlighted the physical demands of the job.
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ECONOMY

Productivity prediction adds to pressure on Chancellor

Chancellor Rachel Reeves must address a £20bn shortfall in the upcoming Budget due to a projected downgrade in UK productivity by the Office for Budget Responsibility (OBR). The OBR plans to reduce its productivity growth forecast by 0.3 percentage points, which could increase public sector net borrowing by £21bn by 2029/30, according to the Institute for Fiscal Studies, which has suggested each 0.1-percentage-point downgrade to productivity would increase public sector net borrowing by £7bn. In a speech earlier this week, Reeves suggested a downgrade was on the horizon, saying that the OBR "is likely to downgrade the forecast for productivity in the UK based not on anything this government has done, but on our past productivity numbers." She also noted that productivity has been "very poor since the financial crisis and Brexit."
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CORPORATE

M&A activity on the rise

Global mergers and acquisitions activity rose by 10% in the first nine months of 2025, reaching a total of $1.938trn, according to a report by the Boston Consulting Group. Despite challenges from geopolitical tensions and U.S. tariff policies, dealmakers have continued to pursue strategic opportunities, although the figures remain over 40% below the highs seen in 2021. Notably, North America accounted for more than 60% of the activity, while Europe experienced a 5% decline, particularly in the UK, which saw M&A value drop by 35%.
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INTERNATIONAL

Youth wage debate heats up in Australia

Employer groups in Australia warn of rising youth unemployment if the Fair Work Commission approves equal wages for 18 to 20-year-olds in retail and fast food. The Shop Distributive and Allied Employees Union argues for equal pay, likening it to the fight for gender equality. Currently, youth wages are significantly lower than adult rates, with 18-year-olds earning 70% of the adult rate. Critics fear that raising these rates could harm job opportunities for young Australians, especially in regional areas.
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OTHER

Education secretary sets timeline for removal of RAAC in schools

Education secretary Bridget Phillipson has said that all schools that are not marked to be rebuilt should be free from reinforced autoclaved aerated concreate (RAAC) by the end of this parliament. RAAC has been permanently removed from 62 schools and colleges so far, the government said. Of the 237 schools and colleges in England which had confirmed RAAC, 108 received government grants to remove the troublesome concrete. A further 123 were added to the Department for Education's School Rebuilding Programme.  Phillipson said: "After years of neglect we are giving every child a safe and high-quality classroom where they can focus on learning - by setting clear timelines for the permanent removal of RAAC from schools and colleges. It’s what parents expect, it’s what children deserve and it’s what we are delivering."
 
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