An extra 9 million staff will be granted powers to sue their employers under sweeping plans by Angela Rayner to overhaul workers’ rights.
The government is set to announce details of its Employment Right Bill, which it says would end the "exploitative" use of zero-hours contracts and "fire and rehire" practices.
The reforms consist of 28 new measures including the right to take companies to court for unfair dismissal from the first day of their employment. Currently, people must be employed for at least two years before they qualify for these powers.
The Deputy Prime Minster described this as the "biggest upgrade to rights at work for a generation".
However, business leaders have attacked Ms Rayner's plans, calling them “chaotic” and “poorly planned”. They added that the reforms risked damaging companies’ willingness to take on new recruits.
Tina McKenzie, policy chair at the Federation of Small Businesses (FSB), said: “Beyond warm words, this lacks any real pro-growth element and will increase economic inactivity, seriously jeopardising the Government’s own 80pc employment target.
“There are already 65,000 fewer payroll jobs since Labour took power and the new Government is sending out a troubling signal to businesses and investors.”
Neil Carberry, chief executive of the Recruitment and Employment Confederation (REC), added: “We remain concerned to ensure that firms are attracted to investing in Britain, and that businesses can grow successfully here. That means working with businesses to avoid changes that disincentivise hiring.”
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.