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UK Edition
5th December 2025
 
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THE HOT STORY

Employees to get unlimited compensation for unfair dismissal

The government plans to remove the £118,000 cap on unfair dismissal compensation, raising concerns among employment experts that bosses will become "more cold blooded" during probation periods. Colin Leckey from Lewis Silkin warned that uncapped compensation could lead to increased claims and discourage hiring. He said: "This does not sound like a recipe for growth." Elsewhere, Dan Pollard, a partner at Charles Russell Speechlys, said: "Today's development is frankly bonkers . . . unless introduced overnight it has the potential to create a bloodbath as employers seek to exit underperforming senior staff ahead of time." Meanwhile, the implementation of protection from unfair dismissal for workers after six months will be brought forward to January 1, 2027, a move welcomed by former deputy prime minister Angela Rayner. The Employment Rights Bill also includes measures to ensure workers on zero-hours or variable contracts are not locked out of the new rights, as well as introducing fines for employers who deny unions the right to talk to workers.
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HIRING

Jobs growth collapsed before the Budget

Businesses in the UK laid off staff at the fastest rate since the pandemic in the run-up to the Budget, with employment falling by 1.8% in November. According to a Bank of England survey of over 2,000 firms, a further drop of 0.2% is expected in the next year. Rob Wood, chief UK economist at Pantheon Macroeconomics, said the survey was consistent with a 20,000 drop in private sector employment in November followed by an 18,000 fall in December. Unemployment has risen to a four-year high of 5%, with 180,000 jobs lost since the Chancellor's first Budget.

Trainee teacher numbers increase by 11%

New Department for Education data shows trainee teacher numbers have risen by 11% this year. There were 32,175 new entrants to initial training in 2025/26 – up from 28,898 in 2024/25. The government is over-recruiting potential primary teachers but is missing its target for secondary, the data showed.
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HEALTH & WELLBEING

Moray HR pilot to tackle teacher absences

Moray Council is to launch a pilot scheme that will see it invest £176,000 over two years to employ two human resources specialists with the single aim of "reducing sickness absence" among the region's teachers. Recent data revealed that teachers employed by Moray Council took more sick days than in any other council area in Scotland, an average of 10.8 days per full-time equivalent member of staff, with almost half of absences attributed to depression, stress and anxiety. 

Clinical review of mental health diagnoses announced

Health Secretary Wes Streeting has launched an independent clinical review to look into the increase in diagnoses of mental health conditions such as autism, attention deficit hyperactivity disorder (ADHD), depression and anxiety. The review will be led by Prof. Peter Fonagy, a UCL clinical psychologist specialising in child mental health. Mr Streeting said the review, which will also consider whether normal feelings have become "over-pathologised," will "look at [the issue] through a strictly clinical lens to get an evidence-based understanding of what we know, what we don't know, and what these patterns tell us about our mental health system, autism and ADHD services."
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TRAINING & DEVELOPMENT

Over a quarter of students are ‘not very motivated’ to learn

A Department for Education annual survey suggests a decline in the proportion of students feeling motivated to learn at school.  In 2025, 27% of students in Years 7 to 11 said they were “not very motivated” to learn or “not at all motivated.” In total, 70% of more than 2,500 students said they were at least “fairly motivated” to learn, a fall from 75% in 2024.

 
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TECHNOLOGY

AI companies' safety practices 'fail to meet global standards'

A new edition of the Future of Life Institute's AI safety index says the safety practices of artificial intelligence companies including Anthropic, OpenAI, xAI and Meta are "far short of emerging global standards." Max Tegmark, MIT professor and Future of Life president, observed: "Despite recent uproar over AI-powered hacking and AI driving people to psychosis and self-harm, US AI companies remain less regulated than restaurants and continue lobbying against binding safety standards."

UK explores tougher laws on AI chatbots

Technology Secretary Liz Kendall has told MPs that AI chatbots may be more tightly regulated in the UK amid concerns they encourage teenagers to commit acts of self-harm. The Online Safety Act was written before the rise of generative AI and Kendall said she wants to make sure bots such as ChatGPT do not benefit from any loopholes.
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INTERNATIONAL

Thyssenkrupp restructuring deal will cost several hundred million euros

Marie Jaroni, Thyssenkrupp's steel division chief, has told the Frankfurter Allgemeine Zeitung newspaper that a restructuring deal that will cut or outsource about 11,000 jobs will cost the company several hundred million euros. "The restructuring is costing us a mid-three-figure million euro sum. The exact amount depends on how many employees accept which offer," Jaroni told FAZ. She said the deal will pay off because the company will have permanently lower personnel costs - "a low three-digit million amount less annually than today."

India reverses order to install government app on all smartphones

The Indian government has reversed a policy mandating the installation of a state-run cyber security app on citizens' mobile devices. Prime Minister Narendra Modi's government had privately told companies including Apple, Samsung, and Xiaomi that their products would have to carry an app called Sanchar Saathi, which would be able to access call logs and memory systems. The initiative was met with opposition from privacy advocates, as well as the tech companies themselves. The Internet Freedom Foundation called the reversal a “welcome development”, and thanked all parties who “raised their voice, reported on the issue or pushed back against this mandate”.

The economic miracle of China’s midday naps

The midday nap, or wuxiu, is growing in popularity in China. Workers need at least an hour’s snooze at midday because, very likely, they will work (an illegal) three shifts. 
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OTHER

Family hubs to boost SEND support in disadvantaged areas

Education secretary Bridget Phillipson is expected to announce plans for a new family hub programme, inspired by Sure Start, to provide extra support for families with children with special educational needs and disabilities (SEND). The Best Start hub programme, with £500m of funding, will be delivered through local authorities, which will be expected to establish a total of 1,000 hubs across the country's most disadvantaged areas. Phillipson said SEND support for families who need "early, expert help" can make "all the difference not only for parents, but for children's life chances", adding: "Giving every child the best start in life means revitalising family support. Nowhere is support more important than for families of children with SEND."
 
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