Angela Rayner was facing humiliation last night after it was reported that the ‘right to switch off’ will be dropped from the workers’ rights bill.
The French-style plan would have made it illegal for employers to expect their staff to be contactable outside working hours.
But Business Secretary Jonathan Reynolds and Chancellor Rachel Reeves are said to have raised concerns about the burden on business.
The policy – which was championed by Angela Rayner – formed a key part of Labour’s manifesto commitment to a ‘new deal for working people’.
Countries such as France, Belgium and Ireland already allow workers to avoid emails, texts and phone calls received out of hours.
Ministers are expected to formally drop the plan, which wasn’t included in the employment rights bill, on Tuesday, the Sunday Times reported.
They had committed to implementing the measure in the future, but it is expected to be axed when the Government tables amendments to the bill next week.
Mr Reynolds and Ms Reeves are said to be concerned that the plans would have dented economic growth and placed further burdens on businesses following her tax-raiding budget.
Angela Rayner suggested the policy to make it illegal for employers to contact their employees outside of work hours
Rachel Reeves and Johnathan Reynolds were concerned that the plans would have dented economic growth
A government source told the paper: ‘The right to switch off is dead. We have to lower business compliance costs as much as possible.
‘Growth that puts money in people’s pockets is the No 1 priority of this government’s “plan for change”.
‘That means making Britain the best country in the world in which to do business and a key part of that is removing unnecessary barriers.’
Ms Rayner, who led Labour’s workers’ rights programme while in opposition is said to have agreed to the move after the plans had already been watered down.
A commitment to ending zero hours contracts was changed to the less stringent ‘exploitative’ zero-hours arrangements.
The plans are opposed by businesses, with the Federation of Small Businesses warning in January that companies would stop hiring and sack workers.
Businesses are facing increases in the national minimum wage and national insurance for employers next month.
However, unions back the plans and will be furious about any attempt to dilute them further.In other changes, the Government will set probation periods at nine months, rather than the six demanded by union leaders. There is no set maximum at present.
Labour’s ‘New Deal for Working People’ being pushed by Deputy PM Angela Rayner while in opposition had already received criticism
Day-one protections against unfair dismissal and policies about paternity leave and unpaid parental leave will remain, while zero-hours contracts are curtailed and union power increased, however.
The reforms are not expected to be implemented until autumn 2026 at the earliest.A Government source told the paper: ‘It’s important that our changes to the employment rights bill work for businesses.
‘That is why we have engaged with so many employers to shape this legislation and make improvements that reflect our partnership with businesses across Britain.’
‘We are bringing forward a new generation of workers’ rights, helping to raise living standards and grow the economy, because we know that workers who are looked after are more likely to stay in their job and are more productive, creating the right conditions for businesses to grow.’
Last night a Labour source said that while ministers wouldn’t table an amendment on the ‘right to switch off’ on Tuesday, this did not mean it would not be introduced in the future.
They said that the position remained that the Government would be able to introduce the policy through other means, including a ‘statutory Code of Practice’ alongside the Employment Rights Bill’s passage.