British Airways is set to rehire up to 3,000 cabin crew after thousands of jobs were cut when the Covid-19 pandemic hit.
The airline, which laid off some 10,000 employees in spring and summer of 2020, has reportedly started offering jobs for next summer as the travel industry slowly recovers from the crisis.
The move comes after the UK and the US agreed to ease travel restrictions between the two major tourist and business destinations.
In an internal email sent to staff, BA called the governments’ decision to roll back the restrictive measures a “major milestone” for the long-suffering industry, reports The Financial Times. It also said staff would be brought on board from next summer.
“Finally we are beginning to see some real momentum as more countries open up for travel and consumer confidence grows,” BA said.
Staff who took voluntary redundancy had the option of putting their names into a “talent pool” to be considered for future roles once the rehiring process started.
The airline is understood to have reached out to some people in this group with new offers of employment.
Staff that remained on the payroll following the cull had to accept lower wages and demotions. The union Unite said some employees accepted a 35 per cent drop in pay in order to continue working.
It said the airline is now planning to rehire about a third of the total number of employees it let go last year, but BA did not confirm how many staff it would take back.
Sharon Graham, Unite general secretary, said the rehiring plan shows “there was never any need to sack thousands of dedicated BA staff”, which the union had argued against last year.
She accused BA of conducting an “abhorrent practice of fire and rehire” and ignoring less drastic options.
"Now, fewer than 12 months later BA is championing its intention to recruit thousands of new staff, insultingly even asking those crew it sacked needlessly last year to re-apply on substantially reduced terms and conditions,” Ms Graham added.
"It is yet another bad faith act from a business that should be focusing on repairing both a tattered workforce and customer relations, not cutting yet more corners in order to reward the boardroom.”
Unite also criticised the airline’s refusal to withdraw a threat to lay off existing staff members this winter.
Ms Graham said the move had caused a “deplorable” level of insecurity for staff and called for the airline to offer assurances about job protection.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
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