Labour will today attempt to divert the focus on to one of its core manifesto commitments today with the biggest shake-up of employment laws in a generation.

The government’s plan to Make Work Pay will set out a range of measures including a ban on zero hours contracts and fire and rehire practices, while establishing rights to bereavement and parental leave from day one.

Statutory sick pay will be strengthened, removing the lower earnings limit for all workers and cutting out the waiting period before sick pay kicks in.

Ministers believe the changes will create the foundations for a boost to productivity and will call on surveys showing employers largely supportive as they are likely to improve recruitment and retention of workers.

The Employment Rights Bill will be laid before Parliament today ahead of the Government’s International Investment Summit next week and are seen as a message that the agenda has shifted from gloom and industrial stoppages to growth, opportunity, and optimism.

Most of the measures will not be introduced for at least two years but the Deputy Prime Minister, Angela Rayner, and Business Secretary Jonathan Reynolds aim to create a new partnership between business and trade unions to reflect changes in working patterns.

Labour sees a need to meet the needs of one in five UK businesses which are reporting staff shortages. This will be tackled through greater flexibility, for workers and businesses alike.

The existing two-year qualifying period for protections from unfair dismissal will be removed, delivering on the manifesto commitment to ensure that all workers have a right to these protections from day one on the job. This is set to benefit nine million people that have been with their employer for less than two years.

The government will also consult on a new statutory probation period for companies’ new hires. This will allow for a proportionate assessment of an employee’s suitability to a role as well as reassuring employees that they have rights from day one.

This will enable businesses to take chances on hires with a lighter touch process while giving more people confidence to re-enter the job market or change careers, improving their living standards. 

Ending zero hours contracts will help more than one million people who will gain guaranteed working hours. An extra 30,000 fathers or partners that will be brought into scope for paternity leave, while an additional 1.5 million parents will gain flexibility with unpaid parental leave becoming a right from day one.

Accompanying this will be measures to help make the workplace more compatible with people’s lives, with flexible working made the default where practical.

Large employers will be required to create action plans on addressing gender pay gaps and supporting employees through the menopause, and protections against dismissal will be strengthened for pregnant women and those returning from maternity leave. This is all with the intention of keeping people in work for longer, reducing recruitment costs for employers by increasing staff retention and helping the economy grow.

A new Fair Work Agency bringing together existing enforcement bodies will be established to enforce rights such as holiday pay and support employers looking for guidance on how to comply with the law.

Ms Rayner said: “This Labour Government’s plan to make work pay is central to achieving our growth mission, boosting productivity. After years of stagnation under the Tories, we’re replacing a race to the bottom with a race to the top, so employers compete on innovation and quality.”

Secretary of State for Scotland Ian Murray said: “This is the biggest upgrade to workers’ rights in a generation, meaning a better, fairer deal for people across Scotland.

“Our plan to Make Work Pay will tackle the low pay, poor working conditions and poor job security that has been holding our economy back.”

Rebecca Florisson, principal analyst, Work Foundation at Lancaster University, said: ““After years of political inertia and missed opportunities, the Employment Rights Bill… has the potential to transform working conditions for millions of people who disproportionately bear the brunt of precarious employment – particularly women, disabled workers, ethnic minorities, and young people.”

The government will also publish a Next Steps document today that outlines reforms it will look to implement in the future. 

Subject to consultations, this includes: 

• A Right to Switch Off, preventing employees from being contacted out of hours, except in exceptional circumstances, to allow them the rest and get the recuperation they need to give 100 per cent during their shift.

• A strong commitment to end pay discrimination through the draft Equality (Race and Disparity) Bill which will include measures to make it mandatory for large employers to report their ethnicity and disability pay gap. 

• A consultation on a move towards a single status of worker and transition towards a simpler two-part framework for employment status. 

• Reviews into the parental leave and carers leave systems to ensure they are delivering for employers, workers, and their loved ones.