Deputy Prime Minister Angela Rayner recently met with unions and key business groups, including the CBI and the Federation of Small Businesses (FSB), to discuss Labour’s ambitious “Make Work Pay” plan. The initiative aims to enhance workplace rights and raise living standards through higher growth and productivity.

Rayner’s proposal includes day-one rights for employees covering sick pay, parental leave, and protection from unfair dismissal. While workers welcome this, some business leaders expressed concerns about potential exploitation and unintended consequences.

Tina McKenzie, Policy chair at the FSB, emphasised the importance of Government engagement in avoiding harm to small businesses.

Jane Gratton, deputy director for public policy at the British Chambers of Commerce, echoed these sentiments, urging thorough consultation to ensure changes are proportionate and affordable.

Labour also plans to ban zero-hours contracts and end the controversial “fire and rehire” practices. According to research from Indeed Flex, 54% of UK HR managers support banning zero-hour contracts, though there is recognition that businesses will need to adapt.

A key proposal is the introduction of a genuine living wage, set by the Low Pay Commission, which will reflect the actual cost of living and eliminate age bands.

Peter Cheese, chief executive of the Chartered Institute of Professional Development, described these reforms as the most significant transformation of workers’ rights in a generation, stressing the need for careful consultation to balance the interests of both employers and employees.

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