The reforms, which have been described by the Government as the “biggest upgrade” to workers’ rights in a generation, consist of 28 new measures including a ban on fire and rehire practices and an end to so-called exploitative zero-hours contracts by forcing companies to also offer fixed hours.
Kevin Hollinrake, the shadow business secretary, said the package of reforms proved that the Government was in “cahoots” with “their union paymasters” rather than businesses.
Writing in The Telegraph, he said: “Today, Labour are starting to ram through their package of measures that will hand power to the unions not seen since the 1970s. Ministers must change tack. If not, the stalling business confidence since Labour got in is just the tip of the iceberg if their ‘New Deal for Working People’ goes through in its current form.”
However, certain elements of the package have been watered down by Ms Rayner in an effort to appease employers. The Government said companies would be able to keep new recruits on probation for up to nine months, just weeks after ministers suggested the recommended period would be six months.
Lobby groups had called on Ms Rayner and Jonathan Reynolds, the Business Secretary, to enforce a statutory probationary period of at least a year.
A Whitehall source said that although staff will have extra power against unfair dismissal, the amendment will ensure employers “won’t be trapped in a cumbersome process” if they want to sack someone.
“You should be able to get rid of someone on a ‘lighter touch’ process during a probation period,” the source said. “Staff will be able to bring claims at any point after they’ve started working, but during a probation period it will be different.”
The package has been pared back in other areas, including putting plans to give workers “a right to switch off” out to consultation, meaning they may not come into force until 2026 or later. Changes to day one rights will also be delayed by two years.