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20th May 2024
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THE HOT STORY
HMRC is recruiting staff with AI alone
HM Revenue & Customs (HMRC) is using artificial intelligence (AI) in its staff recruitment process. Candidates don't interact with a human until their first day on the job. The recruitment process involves candidates submitting a CV and a 1,000-word statement, followed by a video interview with an automated system. The video interview consists of six questions, and the candidates record their answers after each question. HMRC uses a technology platform called Outmatch to analyse the video interviews and score the candidates against civil service standards. While AI can be helpful in identifying suitable candidates, Adam Al-Badry at recruiter Robert Half argues that human interaction is crucial to assess cultural fit.
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LEGAL
Labour's plan for workers' rights could overwhelm employment tribunals, warns lawyer
Labour's plan to grant day-one protection from unfair dismissal to millions of employees could overwhelm employment tribunals, warns lawyer Ben Smith at GQ Littler. The proposed workers' rights overhaul by Sir Keir Starmer's party includes the right to switch off and a ban on exploitative zero-hour contracts. However, it is suggested that the plan to give protection from unfair dismissal from the first day of employment could lead to a surge in claims, exacerbating the existing backlog in the tribunal system. Labour has promised to introduce a single body to oversee the enforcement of protections, but many cases, including unfair dismissal, will still be dealt with by employment tribunals. The party aims to resolve disputes before they escalate, but the slow tribunal process and lack of resources could result in longer backlogs. The plan has raised concerns among businesses and experts, who fear it could lead to a lose-lose situation for both employees and employers. Labour argues that the plan will raise standards and create a more level playing field in the workplace.
Woman awarded £20,000 after miscarriage due to pregnancy discrimination
A woman has been awarded £20,000 after suffering a miscarriage due to pregnancy discrimination at an award-winning cheese-maker in the West Country. Storm Botha claimed that she was demoted and had her wages cut after revealing her pregnancy, which led to panic attacks and ultimately a miscarriage. The tribunal upheld Botha's claims of pregnancy discrimination and unfair dismissal. The cheese-maker, White Lake Cheese, must now pay the compensation. The company's managing director, Roger Longman, allegedly made the decision to demote Botha without knowing she was pregnant. The tribunal also noted that no risk assessment was made to ensure the safety of Botha's new role, which involved heavy lifting. Botha was ultimately sacked the month after her miscarriage.
Virgin Atlantic crew sue for unfair dismissal
An employment tribunal in London will next month begin examining more than 200 cases of Virgin Atlantic cabin crew who claim they were made redundant because of their age. Former crew will argue that Sir Richard Branson's airline, using Covid redundancies, unfairly let them go while retaining cheaper new hires.
REMOTE WORKING
Countries wooing corporate digital nomads hope to make them stay
“Digital nomad” visas are increasingly being used by countries to attract remote corporate workers, say mobility experts, as governments seek to outbid each other in a global war for talent.
TECHNOLOGY
Experts warn of lack of protections against AI
A landmark scientific report warns that tech companies have little understanding of how their AI systems operate and that scientific knowledge in the field is limited. The report, commissioned by Britain and backed by the United Nations and the European Union, concludes that there are currently no strong protections against the dangers of AI. Experts criticise AI companies for failing to provide sufficient access to safety inspectors and for prioritising quick product releases over thorough risk management. The report also highlights the need for increased investment in understanding AI technology and the implementation of national and international regulations to ensure safety. Yoshua Bengio, one of the "godfathers of AI" who chaired the panel, expressed concern about the lack of understanding and stressed the importance of designing future AI systems to prevent harm. The report covers various risks associated with AI, including deepfakes, disinformation, fraud, hacking, bias, and labour market impacts. While some progress has been made in labelling AI content, the experts note that this can be circumvented by sophisticated actors.
Amazon investor demands transparency on AI
Investors are urging Amazon to toughen up the monitoring of its use of AI as concerns mount over how Silicon Valley giants are handling the new technology. Abrdn, which has previously called for Apple to take its responsibilities with AI more seriously, is calling on the company to set up a committee of independent directors to deal with the impact of its AI usage on human rights. Stuart Riddick, senior sustainability manager at Abrdn, said transparency about AI use was crucial to “fostering an AI-enabled future that delivers sustainable benefits for shareholders and other stakeholders.” But Amazon argues that it would be more effective for it to deal with AI-related issues through its existing boardroom committees. Abrdn is also backing another resolution calling for a review of workers’ rights at Amazon.
WORKFORCE
AI expert calls for universal basic wage to combat job losses
Former Google vice president Geoffrey Hinton, a top AI expert, has called for humans to be paid a universal basic wage to combat the job losses caused by robots. Hinton believes that while a universal basic income can solve the problem of starvation and inability to pay rent, it does not address the issue of self-respect derived from jobs. He warns that the rise of robots will be detrimental to society and that blue-collar and mid-level intellectual jobs will be lost to AI. However, he suggests that trades like plumbing may be safe for now. Hinton's concerns align with predictions from the International Monetary Fund and the Institute for Public Policy Research, which estimate that a significant percentage of jobs worldwide, including eight million in the UK, will be affected by AI. 
Thousands of NHS staff missing out on unclaimed pension payments
Thousands of doctors in the UK may be missing out on over £40,000 a year in unclaimed pension payments, according to analysis. A rule change last year means that over 200,000 NHS staff are eligible to claim retirement benefits from their old pension scheme and continue working without a financial penalty. However, many are unaware of these early pension payments, resulting in lost money. Analysis by Quilter shows that there are thousands of NHS pension members who are eligible to claim these benefits but have not done so. Graham Crossley, NHS pension specialist at the wealth manager, urged the government to do more to make public sector health workers aware of the changes to the scheme and amend the rules.  
Complaints about workplace pensions rise
Workers are being warned to check their workplace pensions following a rise in complaints about schemes. The Pensions Regulator received 9,487 whistleblowing reports between January 2023 and February this year, a significant increase from previous years. Experts are urging workers to ensure they are in their workplace scheme and to check their pension contributions. Former pensions minister Steve Webb, now partner at pension consultants LCP, said: “If you're eligible for auto-enrolment, check to make sure you are getting the contributions you're entitled to.”
Nottingham launches mortgage range aimed at foreign nationals
Nottingham Building Society is launching a mortgage range designed to support foreign nationals who work in the UK. The mortgage range does not require borrowers to have spent any minimum length of time in the UK before applying, no minimum time remaining on visa and no minimum income is needed. The lender has partnered with the cross-border credit bureau, Nova Credit, to provide mortgage brokers with access to historic credit files in a growing number of countries worldwide.
HIRING
London insurance market jobs hit highest level in decade
Job numbers in London's insurance market have reached their highest level in at least a decade, according to the London Market Group (LMG). The LMG found that staff levels at commercial insurance and reinsurance firms in 2023 totalled 59,000, the largest figure since 2013. This represents a significant recovery from the pandemic, when staff levels dipped to just 41,000. The London insurance market wrote approximately $180bn in gross premiums last year, double the levels of a decade ago. Despite difficulties attracting young workers, the market now makes up over 25% of the City of London's economic output. The LMG is calling for more light-touch regulation to aid innovation in the industry. "People have choices [over where to buy insurance], and everyone needs to be alive to that, and think how we can make [London] a positive choice," said Caroline Wagstaff, CEO of the LMG.
DIVERSITY, EQUITY & INCLUSION
Heston Blumenthal calls for change in attitudes to neurodiversity in the workplace
Heston Blumenthal, the renowned chef and restaurateur, has revealed his bipolar diagnosis and is calling for a change in attitudes towards neurodiversity in the workplace. Blumenthal believes that neurodivergent individuals, who may have exceptional skills and abilities, are underrepresented in UK business. He commissioned research which found that 11% of people surveyed have been officially diagnosed as neurodivergent, with 21% of them unemployed. Another study found that 37% of FTSE 350 board directors and HR professionals describe their company's understanding of neurodivergent employees as average or poor. Blumenthal hopes that by being open about his own mental health, he can raise awareness of the issue and highlight the contribution neurodiversity can make to the workplace. Sinead Devine-French, chief science officer of The Positive Group, emphasised that embracing neurodiversity can be a strategic game-changer, enriching thinking and propelling creativity in diverse teams.
English courts consider scrapping barrister wigs amid cultural insensitivity claims
English courts are considering scrapping compulsory barrister wigs due to claims of cultural insensitivity. The judiciary is reviewing proposals made by the Bar Council, with changes expected to be made this autumn. Some barristers argue that the wigs discriminate against those with Afro-Caribbean hair. Rachel Bale, a mixed-race barrister with afro hair, said that although she enjoys wearing her wig, they are often impractical and "not fit for purpose" for some people. Leslie Thomas KC, a law professor, described the wigs as a "ridiculous costume" and has called for their removal. He added that the judiciary should also abandon other "archaic" items of court dress, such as wing collars, bands and collarettes. 
CORPORATE GOVERNANCE
Scottish water quango CEO steps down after damning report
Alan Sutherland has resigned as the chief executive of the Water Industry Commission for Scotland (Wics) following a damning report by Audit Scotland. The report highlighted concerns about Sutherland's "unacceptable use of public funds" and his failure to provide itemised receipts for some of his expenses. It was revealed that Sutherland had spent over £130,000 on expenses, including luxury meals, flights, hotels, and executive training courses. The report also questioned why Sutherland had spent extensively on travel despite the pandemic restrictions. Wics has conducted a review of all transactions and is committed to addressing the governance issues. The Scottish water quango acts as the economic regulator for the water industry in Scotland. Sutherland had been with Wics since its formation in 2005 and was previously criticised for his high spending on flights.
 


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