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UK Edition
22nd December 2025
 
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THE HOT STORY

Labour think tank wants Employment Rights Bill scrapped

Labour Together, a think tank linked to Sir Keir Starmer, is advocating for significant changes to the Employment Rights Bill. A leaked paper criticises the bill as a "safety blanket" that hinders economic progress. It proposes scrapping 80% of the bill and replacing it with higher taxes to fund unemployment insurance for laid-off workers. The paper argues that flexibility in the labour market is essential for economic growth, saying: "Easy firing means easy hiring, which benefits both firms and workers." The proposals are likely to create divisions within the Labour Party. Responding to the leak, a Labour Together spokesman said: "Labour Together totally supports this week's Employment Rights Act. This paper was a provocation for private discussion about how to build a political economy centred on technological change and innovation."
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TRAINING & DEVELOPMENT

Resilience training is booming

Resilience training is becoming increasingly common in UK workplaces, the Sunday Times reports, with about 50% of employers offering such programmes. According to a report from training company Corndel, demand for mental health workshops has surged, with a 53% increase in resilience training over the past three years. Ann Francke, chief executive of the Chartered Management Institute, observing that some companies test resilience informally through interviews and early-career sink-or-swim roles, says: "Good employers have always done this."  
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LEGAL

TikTok faces legal threat over job cuts

TikTok is facing potential legal action after announcing job cuts affecting over 400 UK safety workers. The company is accused of threatening redundancy just days before a union vote. Two moderators have sent a legal letter citing unlawful detriment and unfair dismissal. Stella Caram, head of legal at Foxglove, said: "This is obvious, blatant and unlawful union-busting." TikTok has one month to respond to the claim. A spokesperson for TikTok denied the allegations, saying the changes are part of a global reorganisation to enhance user safety.

Bill could mean 'fewer jobs, not better ones'

Helen Dickinson, chief executive of the British Retail Consortium, has voiced concern over Office for National Statistics data which shows unemployment rising to 5.1%. She says the increase highlights the pressures on businesses, particularly in retail. Employment in the sector has decreased by 74,000 over the past year and 355,000 over the last decade. Dickinson has urged ministers to deliver policies that support job creation and flexibility in the sector. She says that while many parts of the Employment Rights Bill will help strengthen worker protections and crack down on bad employment practices, "it also risks punishing responsible employers, landing them with additional constraints that will do little to help workers." Dickinson says parts of the Bill "that reduce flexibility, add complexity or increase costs" will mean that "there are fewer jobs, not better ones."

HR departments brace for major changes

The recent passage of the Employment Rights Act marks a significant shift in employee rights, promising to enhance protections, the Sunday Telegraph reports. The legislation, which includes measures like banning zero-hour contracts and enhancing unfair dismissal rights, has raised concerns among employers about increased legal risks. Rob McKellar, legal services director at Peninsula UK, said: "Businesses are understandably concerned. Getting their HR wrong can be extremely expensive." The act is expected to cost businesses around £5bn, compelling them to strengthen HR capabilities to navigate the new regulatory landscape.
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STRATEGY

McKinsey faces job cuts amid revenue slump

McKinsey & Company is set to reduce its workforce by several thousand over the next 18-24 months due to stagnant revenues. The firm, which peaked at 45,000 employees in 2022, may now have around 36,000, according to James O'Dowd of Patrick Morgan. This trend reflects broader challenges in the consulting industry, with competitors like Bain & Company and Accenture also laying off staff. Economist and McKinsey critic Mariana Mazzucato suggests the firm's reputation may be waning. The rise of AI and changing client expectations further complicate the industry's future.
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WORKFORCE

Home Office extends visas for foreign prison staff

The Home Office has granted an emergency visa extension to hundreds of foreign prison staff to prevent a staffing crisis. The decision follows lobbying from prisons minister Lord Timpson and discussions with Home Secretary Shabana Mahmood. Previously, changes to visa rules had threatened the jobs of around 2,500 staff, primarily from Nigeria. The extension allows these workers to remain for an additional year, addressing urgent staffing shortages in the prison system. Chief Inspector of Prisons Charlie Taylor warned of a "devastating effect" if no solution was found.
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ECONOMY

Economy hit by private sector downturn, says CBI

Business leaders warn that Britain is heading into 2026 amid a deepening private sector downturn. Ahead of the Budget, firms cut back on investment and hiring, and confidence has not recovered since. The Confederation of British Industry (CBI) reports private sector output is set to fall in late 2025, with declining activity across all sectors and worsening forecasts into early 2026. Meanwhile, the labour market is weakening sharply. Adzuna data shows UK job vacancies fell for a fifth consecutive month in November, down 6.4% month-on-month and 15% year-on-year, making 2025 one of the toughest years for jobseekers since the pandemic. Graduate and entry-level roles have been hit particularly hard, partly due to companies adopting AI to reduce staffing needs. Unemployment has risen to a four-year high of 5.1%. Despite these pressures, wages continue to grow faster than inflation. Average advertised pay rose 7.7% annually to £42,687, with especially strong growth in the public sector and IT.
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INTERNATIONAL

EEOC urges white men to report discrimination

Andrea Lucas, chair of the US Equal Employment Opportunity Commission (EEOC), has called on white men to report experiences of workplace discrimination based on race or sex. “Are you a white male who has experienced discrimination at work based on your race or sex? You may have a claim to recover money under federal civil rights laws,” Lucas, a vocal critic of DEI, wrote on social media platform X. The post urged eligible workers to reach out to the agency “as soon as possible" and referred users to an EEOC fact sheet on “DEI-related discrimination” for more information. David Glasgow, executive director of the Meltzer Center for Diversity, Inclusion, and Belonging at the NYU School of Law, said the posts were indicative of a “fundamental misunderstanding of what DEI is,” observing that opponents of DEI “tend to frame it as a set of illegal preferences . . . [but] It's really much more about creating a culture in which you get the most out of everyone who you're bringing on board, where everyone experiences fairness and equal opportunity, including white men and members of other groups.”

VW management to continue cost cutting

Volkswagen CEO Oliver Blume has said Europe's largest carmaker will continue to cut costs as the company seeks to remain competitive in the face of sector-wide challenges. "The task now is to continue to consistently reduce our costs in order to remain competitive in the long term," Blume said. Volkswagen CFO Arno Antlitz said the German automaker must generate more revenue with fewer resources. "This requires even stricter cost management and investment discipline . . . We need more Group synergies, less complexity and a strengthening of our market position in the USA and other regions outside Europe," Antlitz said..

Argentine unions protest against labour reform

Argentina's General Confederation of Labor (CGT) organised a massive demonstration in Buenos Aires on Thursday against a proposed labour reform bill by President Javier Milei. The bill aims to limit the right to strike and alter employee working hours and severance pay. Jorge Sola, a leader of CGT, said: "We don't want fewer rights, we want more work, more dignity."
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OTHER

Stop using live donkeys in nativity plays, schools urged

The Donkey Sanctuary is urging schools and churches not to use live donkeys in their nativity productions. The animal rights charity says it has seen "a concerning amount of events where animal welfare is not considered enough." Deputy chief executive Faith Burden says donkeys do not "show signs of stress, pain or distress", adding: "Unfortunately, they are really sensitive animals. Your average donkey that spends 364 days of the year in a field and is then put into the bright lights of a nativity play is probably not experiencing a particularly happy time."
 
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