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UK Edition
25th February 2026
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THE HOT STORY

Number of zero-hours contracts hits record high

The number of workers on zero-hours contracts has hit a record high. A surge in 16-to-24-year-olds and workers not in full-time education helped drive the number of people employed on the contracts to 1.23 million in December. Analysis by the Work Foundation at Lancaster University based on Office for National Statistics (ONS) data has found that was a 91,000 increase on a year earlier. Labour's 2024 election manifesto promise of a ban on "exploitative" zero-hours contracts forms part of the government's Employment Rights Act, and is expected to come into force next year as a right to guaranteed hours for workers. The Department for Business and Trade said it "will ensure people can have the security they need by giving eligible workers the right to guaranteed hours."
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HR TECH EUROPE 2026 AGENDA IS LIVE

The HR Tech Europe 2026 agenda is officially live!

Bringing together voices shaping the future of work, expect insights from CHROs and industry leading speakers from brands like Amazon.com, Disruptive HR, Marriott International, Pandora, Samskip, SoundCloud, Josh Bersin and more. Read on for a taste of what’s taking shape on stage this 22–23 April at RAI Amsterdam.

Explore the Agenda

 
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TECHNOLOGY

Courts to use more AI

Justice Secretary David Lammy has announced plans to increase AI usage in the UK court system. Speaking at a Microsoft AI event, he highlighted the benefits of AI in transcribing meetings and assisting judges, adding: "I want to see more AI initiatives like this." Richard Atkinson, a defence barrister and former head of the Law Society, said: "We support modernising the justice system and adopting new technology, provided it enhances access to justice, is reliable and ensures fairness." He added, however, that AI "is not a silver bullet to improve the justice system. It might help to ease some administrative pressures, but it is not a replacement for much-needed investment in the court estate and additional court staff." The Law Society has warned that decisions "with serious consequences" for peoples' lives "must be made by humans."
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WORKFORCE

Retail jobs fall as high street faces weak demand and rising costs

Retail employment has declined at the fastest pace in nearly three years, with job losses in the year to February reaching their steepest level since May 2023, according to the Confederation of British Industry (CBI). Sales volumes also dropped sharply amid persistently weak demand, continuing a downturn that began in mid-2023. Wet weather reduced footfall, while online sales grew but failed to offset overall losses. Businesses cited rising costs and policy pressures, including higher employer national insurance contributions, minimum wage increases and regulatory changes, as factors worsening conditions. Retailers expect further job cuts and deteriorating trading conditions in the coming months, with investment plans also being scaled back. Economists said the sector will look to upcoming fiscal announcements for potential relief, particularly around employment costs, given retail’s role in providing entry-level jobs for young workers.

BoE economist: Tax hikes and wage increases have hit youth employment

Huw Pill, the Bank of England's chief economist, has linked the government's tax increases - including a hike in employer National Insurance - and a higher minimum wage to a rise in youth unemployment, which has risen above 16%. Pill told the Treasury Select Committee that the impact of these policies has been "particularly acute" for young people and expressed concern about the long-term impact on their job prospects and mental health. Official data shows that youth unemployment has climbed to an 11-year high of 16.1%, compared to a rate of 5.2% for the wider workforce.

NHS in England to be set targets on getting people back to work

Health secretary Wes Streeting wants to make the NHS “accountable” for whether patients are in work by introducing goals for how many people it should get to return to employment.
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LEGAL

PwC in clash with boutique consultancy

PwC has reportedly sent legal threats to partners joining Unity Advisory, a boutique consultancy founded by former executive Marissa Thomas and Steve Varley, the former UK boss of EY. In a bid to stop further defections, the firm has sent a number of "threatening" legal letters to some of Unity's key employees, the Financial Times reports.

Dismissal claim rejected by tribunal

Kevin Smith, a former Morrisons manager, has had his unfair dismissal claim rejected by an Employment Tribunal. Smith was dismissed in May 2021 for inappropriate behaviour towards female colleagues, including sending disturbing messages and engaging in a sexual relationship with a young staff member. Despite claiming his actions were linked to anxiety and depression, Employment Judge Philip Lancaster said there was no medical evidence to support this. The tribunal found Smith's misconduct was clear and that Morrisons had made reasonable adjustments prior to his dismissal.
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INTERNATIONAL

California union pushes work-from-home bill

The Professional Engineers in California Government, the union which represents more than 15,000 state engineers who mostly work for Caltrans and in environmental agencies, is advocating for legislation to make remote work a permanent option for state workers. Assemblymember Alex Lee, a Democrat from Milpitas, has introduced a bill that mandates state agencies to provide work-from-home options “to the fullest extent possible” and to justify any in-person requirements. Ted Toppin, executive director of the union, emphasized that the goal is to establish a state policy supporting flexible telework, which he says benefits both employees and taxpayers. The bill also aims to create a dashboard to track annual savings from remote work, which could amount to $225m annually, according to a state auditor's report. Toppin observed: “Saving money, protecting the environment, cutting traffic, recruiting and training staff. Those are shared goals of all Californians.” The report notes that the engineers union has a reputation for wins at the bargaining table.

Italian region resists US pressure to halt use of Cuban medics

The governor of Italy's southern ⁠Calabria region is rebuffing Washington's ​effort to halt the recruitment of medics from Cuba. Doctors from the Caribbean island are seen as essential to ⁠keeping ⁠local hospitals running, and Roberto Occhiuto said he had ‌told Mike Hammer, the U.S. charge ‌d'affaires to Cuba, he would review plans to hire even more Cuban doctors this year. In January, the US said that Cuba posed an "unusual and extraordinary ​threat" to national security. "We discussed the urgent ⁠needs ⁠of Calabria's health system and ⁠the complexities surrounding ​the Cuban doctors' mission," Occhiuto said after the talks with Hammer. "The Cuban doctors who are allowing us ​to keep hospitals and emergency rooms ⁠open are still a necessity for our region," he added.

Australian real estate firms optimistic as office attendance rises

Office landlords in Australia's major cities are experiencing a boost as over 80% of workers in Sydney and Melbourne are now in the office at least three days a week, exceeding mandated levels. Factors such as enhanced collaboration opportunities and improved office amenities, including gyms and cafes, have motivated employees to return to the workplace more frequently.
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OTHER

Streaming services to be monitored by Ofcom

Major streaming platforms including Netflix, Amazon Prime Video, and Disney+ will face enhanced regulation from Ofcom under new legislation that will align video-on-demand (VoD) services with over 500,000 UK users with traditional broadcasters. The legislation aims to ensure accurate news reporting and protect viewers from harmful content. Ofcom will have the power to accept and investigate complaints about content on streaming platforms. The watchdog will also be able to impose fines of up to £250,000, or 5% of revenue generated in the UK, for any breaches. Culture Secretary Lisa Nandy said that by bringing VoD services under enhanced Ofcom regulation, officials are "strengthening protections for audiences, creating a level playing field for industry and supporting our vibrant media sector."
 
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