We round up the latest employment news.
Unpaid internships: government launches call for evidence
The government has launched a consultation – ‘Make Work Pay: call for evidence on unpaid internships’ – inviting views on the use of unpaid internships. While the government acknowledges that internships can offer valuable career experience, concerns of misuse have prompted a closer look.
The call for evidence closes at 11:59pm on 9 October 2025. You can respond here.
Lords reject government’s ‘day one’ unfair dismissal protection
The House of Lords has voted down a key element of the Employment Rights Bill that would have granted workers protection against unfair dismissal from their first day on the job. The proposal was defeated by 304 votes to 160.
Peers backed a Conservative-led amendment to reduce the qualifying period for unfair dismissal protection from two years to six months – falling short of the government’s original commitment. The Bill will go back to the commons, and it’s likely that this amendment will be voted down given the government’s huge majority in parliament. A day-one right to claim unfair dismissal was included in the Labour Party’s manifesto and the Lords, ultimately, can’t block this.
Return-to-office pressure drives over a million UK workers to quit
Over one million UK employees quit their jobs last year because flexible working was unavailable, according to new research from the CIPD. The findings highlight growing tensions between employers pushing staff to return to offices and workers prioritising flexibility.
Key findings from the CIPD’s survey of over 7,000 people include:
- 53% of employees feel pressured to spend more time in the workplace
- 14% of employers plan to increase mandatory office days; and
- 51% of organisations already require a minimum number of in-office days, typically three per week.
Despite most employers (91%) offering some form of flexible working, the CIPD warns that rigid return-to-office mandates risk undermining staff morale, retention and recruitment, especially among younger workers.
Sexual harassment “endemic” in UK workplaces
The Unite union has published a new report which indicates that sexual harassment in the workplace is unacceptably high, despite new laws, which came into force last year, designed to reduce it.
The survey, which polled 6,615 women across all 19 sectors represented by Unite, found that:
- 25% of respondents had been sexually assaulted at work
- 8% had experienced sexual coercion
- 56% reported being the target of sexually offensive jokes
- 55% had faced unwanted flirting or sexual remarks
- 43% had been inappropriately touched; and
- 28% had been shown or shared pornographic images by a manager, colleague or third party.
Despite the high prevalence of harassment, 75% of respondents didn't report these incidents, often due to fears of not being believed or because they were worried about losing their job.
The survey also highlighted that the issue is worse in certain sectors, such as construction, civil air transport, the food and drink sector, and road transport, warehousing and logistics.
Workplace heat safety inspections
The Trades Union Congress (TUC) has launched a nationwide inspection campaign to assess heat safety in UK workplaces.
More than 1,000 union health and safety reps are taking part in the inspections, which aim to ensure employers are protecting staff from heat-related risks such as dehydration, exhaustion and heatstroke.
The TUC is calling for:
- A maximum workplace temperature of 30°C (or 27°C for strenuous work)
- Employers to take action when indoor temperatures exceed 24°C and staff feel uncomfortable; and
- Greater use of flexible working, cooler spaces and relaxed dress codes.
Although the UK currently lacks a legal maximum working temperature, the Health and Safety Executive is reviewing guidance on extreme heat.
Pensions Bill promises £29,000 boost for UK workers
The UK government has introduced a new Pensions Bill aimed at boosting retirement savings and improving value for savers. The reforms could increase pension pots by up to £29,000 for average earners by simplifying pension management and reducing fees.
The Bill proposes consolidating small pension pots – those under £1,000 – into larger, better-performing schemes.
Pension providers will be required to demonstrate value for money, while new multi-employer “megafunds” will be created to lower costs and expand investment options. The legislation also introduces default retirement income options and allows defined benefit schemes to release surplus funds safely.
UK workers embrace four-day week
Nearly 1,000 UK workers will permanently move to a shorter working week after a successful six-month trial.
All 17 participating companies, including charities and professional services firms, will retain either a four-day week or nine-day fortnight on full pay. The trial, led by the 4 Day Week Foundation, found:
- 62% of workers reported less burnout
- 45% felt more satisfied with life; and
- Some firms saw improved financial results.
New GP Pilot Scheme aims to help thousands back into work
The UK government has launched a £1.5 million pilot scheme aimed at helping people with health conditions return to work and reduce pressure on GPs.
Running across 15 regions, the initiative will see individuals issued with sick notes referred to tailored support services, including career advisers and occupational therapists.
The pilot seeks to reduce reliance on “not fit for work” fit notes by connecting patients with local employment and health support. It will also involve work and health coaches, social prescribers and occupational therapists, while upskilling GPs and allied professionals to provide more effective employment-related advice.
Whistleblowing review highlights gaps
The Department for Business and Trade has published an independent review of Great Britain’s whistleblowing framework, revealing serious shortcomings in how whistleblowers are supported and protected.
Key findings include:
- Only 38% of whistleblowing claims at Employment Tribunals (ETs) succeeded (2014-21), compared to 42% across all tribunal cases
- 96% of disclosures to prescribed persons came from just three sectors: public administration (HMRC), healthcare (CQC), and financial services (The Pensions Regulator)
- Whistleblowers reported severe mental health impacts, including trauma and PTSD; and
- Financial barriers deterred lower-income workers from pursuing ET claims
UK hiring activity falls sharply
Hiring activity across the UK declined sharply in June, according to the latest KPMG and REC Report on Jobs. Permanent staff appointments declined at the fastest pace in nearly two years, with temporary hiring also seeing a marked drop.
The report highlights a sharp rise in candidate availability, the quickest since November 2020, driven in part by redundancies. However, despite the growing pool of jobseekers, employers remain cautious about recruiting new staff due to economic uncertainty, tighter budgets, and weaker demand. Vacancies continued to decline, particularly for permanent roles, and pay growth slowed, with only modest increases in starting salaries and temporary wages.
Inquiry into disability employment gap
The Work and Pensions Committee has launched a new inquiry to examine how employment support for disabled people can be improved, as the UK’s disability employment gap remains at 28%. Despite initiatives like Access to Work, disabled individuals are still twice as likely to be unemployed as their non-disabled peers.
There are currently 10.2 million working-age disabled people in the UK, with around 700,000 actively seeking employment. However, the Access to Work scheme is struggling with a backlog of over 60,000 cases.
The Committee is accepting evidence until Monday 29 September 2025.
Gender pay gap at decade low
New research from PwC shows that gender pay gaps in the UK have continued to shrink, as more employers embrace transparency and reporting. The latest data, covering the 2023/24 reporting year, reveals a modest but positive shift in pay equality.
Key findings include:
- The mean hourly gender pay gap fell from 12.2% to 11.8%
- The median hourly gap dropped slightly from 9.2% to 9.1%; and
- Nearly 60% of organisations reported a reduction in their pay gap
Over 10,000 companies disclosed their gender pay data, reflecting growing pressure from stakeholders and the evolving ESG reporting landscape. However, PwC warns that progress remains slow, and, at the current pace, full pay parity could still be more than 45 years away.
Read more – July 2025
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