Restructuring of Rayner’s employment rights to give 9m workers the right to sue employers

Angela Rayner, the Deputy Prime Minister, is expected to give 9 million more UK workers the right to sue their employers for unfair dismissal from the first day of their employment, as part of an overhaul of workers’ rights.

Currently, employees must have been with the company for two years before they are eligible for this power.

Business leaders have slammed the package of reforms, calling it “chaos” and warning that it threatens companies’ willingness to hire new people. The Federation of Small Businesses and the Recruitment and Employment Confederation have expressed concern about potential economic inefficiencies and reduced business confidence.

The changes, described as the “biggest improvement” in workers’ rights in a generation, include measures such as banning firing and redeployment procedures and ending exploitative zero-hours contracts. However, aspects of the package have been reduced, including extending the recommended probationary period for new hires.

The new workforce measures aim to improve productivity by modernizing workplaces, Rayner says: “We’re replacing the race to the bottom with a race to the top.” However, critics say the changes will give unions the power to seize businesses for bailouts and prevent investment, with shadow business secretary Kevin Hollinrake warning that Labour’s policies could have a negative impact on business confidence.

A new Employment Rights Bill is expected to be introduced this week, with other changes, such as access to flexible working and enhanced parental leave, also on the agenda.