Labour MPs and trade unions hailed the reforms, with Ms Rayner saying the Government was ‘calling time on the Tories’ scorched earth approach to industrial relations’ Pictured: Deputy Prime Minister and Levelling Up, Housing and Communities Secretary Angela Rayner

Flexible working, including working from home, will also be made the ‘default for all’ where possible (stock)

The new law will give nine million workers the right to launch unfair dismissal claims from their first day (stock)

But there are fears the Bill could tie small firms up in red tape, causing bosses to ‘freeze employment’.

Martin McTague, national chairman of the Federation of Small Businesses (FSB), warned last night: ‘With all the good intentions, this [Bill] will inject fear into that employment relationship. It makes most small businesses very nervous.’

Tina McKenzie, policy chair at the FSB, described the legislation as a ‘rushed job, clumsy, chaotic and poorly planned’.

She added: ‘Beyond warm words, it lacks any real pro-growth element and will increase economic inactivity, seriously jeopardising the Government’s own 80 per cent employment target.’

Referring to the right to claim unfair dismissal from day one, Ms McKenzie said this reform will ‘add to the risks associated with hiring people’.

She added: ‘That increased risk will inevitably deter small employers from taking on new people, for fear of facing an employment tribunal simply because a new recruit turns out to be unsuited to the role. That’s bad for jobs, and a barrier to growth.’

There will be an entitlement to bereavement leave, paternity leave and parental leave from day one in a job – although this will not be paid (file image)

 

Sick pay can be claimed from the first day of illness rather than the fourth under the new rights (file image)

The Employment Rights Bill, which includes 28 measures, will also ban zero-hour contracts and introduce a nine-month probation period.

Many of the proposals will be put out for consultation, with some major changes not expected to be introduced until autumn 2026.

However some proposals made during the Election campaign, including Angela Rayner’s so-called Right To Switch Off, are not in the draft legislation at all.

Advertising mogul Sir Martin Sorrell previously described the Deputy Prime Minister’s flagship plan to reform workers’ rights as Labour’s ‘Achilles heel’.

Last night he said: ‘[The latest proposals] will endanger and discourage productive expansion and new investment in the UK and encourage investors to look elsewhere.’

However Labour MPs and trade unions hailed the reforms, with Ms Rayner saying the Government was ‘calling time on the Tories’ scorched earth approach to industrial relations’.

Christina McAnea, general secretary of Unison which represents public service workers, said: ‘Day-one rights, job flexibility, an end to exploitative work practices and measures to ensure unions can be a force for good are what millions of people desperately need. This Bill will transform workers’ lives for the better.’

Kate Nicholls, chief executive of UKHospitality, said she was ‘pleased’ that Labour recognised ‘the importance of flexibility.’ But she warned the Government to ‘take its time [to] avoid unintended consequences’.

So what are the new rights?

– Right to claim unfair dismissal from day one in a new job. Currently staff can only bring Employment Tribunal claims after two years

– Statutory probation period of nine months. During this time bosses will be able to get rid of a new recruit by simply saying it didn’t work out

– Flexible working to become the ‘default for all’. This will include working from home, compressed hours or job share. Currently managers can turn requests down but in future they will only be able to reject them if ‘unreasonable’

– Sick pay can be claimed from the first day of illness rather than the fourth

– Entitlement to bereavement leave, paternity leave and parental leave from day one in a job – although this will not be paid.

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Angela Rayner to meet union leaders TODAY to discuss new law enshrining stronger workers’ rights like WFH, ignoring OOH emails, and zero-hours contracts clampdown

Angela Rayner will gather top union and business leaders in Westminster today to discuss controversial plans to give workers more rights.

The Deputy Prime Minister and Business Secretary Jonathan Reynolds will join the heads of the TUC, Unite, Unison and the militant RMT unions to discuss the Employment Rights Bill.

Under major reforms to be set out on Thursday, all employees will be allowed to demand flexible hours from day one in a new job as well as the ‘right to switch off’ when they go home, without having to answer calls or emails.

Workers will be entitled to sick pay from their first day of illness and will be able to bring unfair dismissal claims after probation periods of just six months rather than two years, while there will also be a crackdown on ‘zero-hours’ contracts.

Those present at the meeting will also include leaders of top business organisations including the CBI, Federation of Small Businesses and the Institute of Directors.

Unison general secretary Christina McAnea said: ‘Unison will not miss any opportunity to speak up for a progressive agenda and show that what’s good for workers is also good for the services they deliver. Expectations are high and we will be working with our trade union allies to make them a reality.’

The legislation will enter the Commons on Thursday covering issues including zero hours contracts, hire and rehire, and the right to flexible working.

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The Deputy Prime Minister and Business Secretary Jonathan Reynolds will join the heads of the TUC, Unite, Unison and the militant RMT unions to discuss the Employment Rights Bill. Pictured are Unite’s Sharon Graham and RMT leader Mick Lynch

But there are warnings that the Employment Rights Bill could end up making life harder for jobseekers.

Legal experts say that small businesses in particular may choose to rely on temporary workers, overtime for their existing workforce or even getting AI to take on more tasks instead of taking on more permanent staff.

It comes as a new report warns that firms are already reluctant to hire new staff while they remain cautious about the economic outlook.

A survey of agencies by the Recruitment and Employment Confederation (REC), who will be at the meeting, found that the number of candidates placed in permanent jobs had been falling for two years.