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UK Edition
30th January 2026
 
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THE HOT STORY

Asda to repay 53,000 underpaid staff

Asda has confirmed that 53,000 staff were underpaid after errors in its payroll system caused by a flawed IT upgrade. The issue affected holiday and sick pay calculations between February 2024 and May 2025 following the rollout of "Project Future IT." Executive chairman Allan Leighton said the supermarket had identified the mistakes during a system review. Asda will repay all affected current and former employees, with interest, and return money previously clawed back from overpaid staff. The problems followed the retailer’s complex separation of IT systems from former owner Walmart, which was marked by delays and technical failures. Asda has linked the disruption to weaker trading performance and said external experts have since validated fixes to prevent a repeat.
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WORKFORCE

UK weighs universal basic income amid AI disruption

Investment minister Jason Stockwood has revealed there are talks within government about introducing a universal basic income to support workers in industries likely to be hit by AI. Stockwood said that society must prepare for significant changes, and suggested a need for "some sort of concessionary arrangement" for jobs that are lost. He said: "People are definitely talking about it." Recent research from Morgan Stanley indicates that the UK is losing more jobs than it creates due to AI.

Companies to be urged to bypass ‘fit note’ system with health plans for sick staff

A government-backed drive to keep people in jobs when they fall sick aims to set national standards of support that bosses will be expected to offer to help staff stay in or return to work.  Sir Charlie Mayfield, the former John Lewis chair who is leading the initiative, told BBC’s Today programme: “I think where we start from is that currently we have a lot of fear – so basically when people get ill at work they generally fear telling their employer about it, and the employers are often fearful about talking to people about it – and so you create distance. And if you have distance when people are unwell, it really does not help to get this thing better.” He added: “We’ve got to figure out how we support [employers] to do that really well and then what we’ll be saying to government is ‘right, what government has to do is to create the right set of incentives that encourage many, many employers to get on board’.”


The employees secretly working a four-day week

Many employees appear to be working heavily reduced Friday hours without approval from their superiors, and employers are said to be increasingly concerned with Friday absenteeism, the Financial Times reports.
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LEGAL

Baldness can be a disability, judges rule in wig tax row

Judges have ruled that severe hair loss in women constitutes a disability that impacts daily activities. The landmark decision arose from a £277,000 VAT dispute involving Mark Glenn Ltd, which sells wigs for women with hair loss. The Upper Tribunal judges, Swami Raghavan and Kevin Poole, said: "Severe hair loss in women constitutes an impairment that adversely affects the ability to carry out everyday activities." The ruling allows the company to exempt its wigs from VAT, recognising the cultural significance of hair to female identity and the distress caused by hair loss.

Sacked prison custody officer denies pronoun 'hostility'

A former trainee prison custody officer has told an employment tribunal that he was not "hostile" when disagreeing with a colleague about the use of pronouns. David Toshack claimed he was unfairly sacked from security firm GeoAmey last January for objecting to calling transgender prisoners by their chosen pronoun. He said he "absolutely" denied that he had been very forceful, intimidating and hostile during a pronoun training session.
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STRATEGY

Tesco to cut 380 jobs

Tesco is set to eliminate 380 jobs across its UK stores, despite reporting strong sales growth during the Christmas period. The retailer aims to simplify operations by removing a centralised bakery system and introducing in-store bakeries at 100 Express locations. Tesco said that the changes are necessary to remain competitive in the market.

Santander to close 44 branches

Santander is set to close 44 branches, risking 291 jobs as part of its ongoing shift to digital banking. The bank reported that 96% of transactions are now conducted online. This follows last year's announcement to close 95 branches, affecting 750 workers. Critics, including government ministers, argue that these closures limit access to cash for vulnerable populations. Santander said that representatives will be available at nearby banking hubs to assist customers.
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INTERNATIONAL

Capgemini under fire in France for ICE contract

France's finance minister, Roland Lescure, has called on Capgemini to clarify its contract with US Immigration and Customs Enforcement (ICE) amid growing concerns over the agency's actions. Capgemini Government Solutions has signed a contract for "skip tracing services" to assist ICE in locating deportees. Lescure said: "I urge Capgemini to shed light . . . on its activities." The scrutiny follows incidents involving ICE officers that have raised international concerns, including the agency's involvement in the US security team for the upcoming Winter Olympics in Italy. Capgemini chief executive Aiman Ezzat noted that the US branch of the firm acted independently on the contract.
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OTHER

Court tells Netherlands to help Caribbean island adapt to climate change risks

A court in the Netherlands has ruled that binding greenhouse gas emissions targets to reach net zero by 2050 must be set by the government to protect the Dutch-Caribbean island of Bonaire, and has ordered the state to develop a proper climate adaptation plan for the island. “This is an incredible victory for the people in Bonaire,” said Eefje de Kroon, a climate justice expert at Greenpeace Nederlands. “Not only has the court established that people from Bonaire are being discriminated against because of the climate crisis but also the Dutch government needs to do much more to protect them.” The court ruled that the Dutch government was breaching articles 8 and 14 of the European convention on human rights, which protect the right to respect for private and family life and prohibit discrimination.
 
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