Labour enjoy 'positive' start to talks with business leaders over workers' rights

Senior business leaders have welcomed discussions with Angela Rayner over proposals to improve workers’ rights as “positive”, but warned the “devil will be in the detail” of legislation due to be put before Parliament next month.

The deputy prime minister and business secretary, Jonathan Reynolds, met the bosses of major employers including John Lewis, Octopus, BT, McDonald’s and Sainsbury’s in Whitehall on Tuesday, at the start of a consultation over the new government’s plans.

Labour’s manifesto promised to overhaul employment rights, with measures including the right for all “zero hours” workers to be offered a contract in line with their normal hours, and the extension of full employment rights to all workers from day one.

The meeting comes amid concern among employers and business groups that a reduction in flexibility as employers could increase costs and hamper their ability to drive growth.

Several businesses present told Sky News the atmosphere was constructive and friendly, with the emphasis on Ms Rayner and Mr Reynolds explaining what they have planned, and listening to the concerns of employers.

Business leaders are understood to be concerned over how the phasing out of zero-hours contracts will be achieved. It’s a key issue in the hospitality and retail sectors which employ large numbers of younger and part-time workers.

Ministers have proposed that every worker must be offered a contract reflecting typical hours worked over a 12-week period, but there is concern that metric could lock employers into hours irrespective of seasonal fluctuations.

Employers will argue for the hours to be calculated over a longer period to avoid distortions.

Businesses also argue that to extend the right from day one, they will need to impose longer probationary periods for new employees so they retain some flexibility.

Labour has promised to introduce legislation during its first 100 days in office, which gives them until 20 October, but are expected to continue consulting on measures beyond that date.

Ms Rayner and Mr Reynolds are understood not to have offered any specific timetable for changes they have billed as the biggest overhaul in a generation, but business leaders remain encouraged.

One said: “None of what Labour is proposing comes as a surprise and we respect that they have a mandate, but the practical delivery will be complex and we can help with it.

“The feeling is this was a positive sign that the government understands the need to consult with business on the things that affect us. The devil will be in the detail, but this was a good first step.”

Another described the atmosphere as friendly and said it was clear the ministers want to be seen to be working with rather than against business.

Ahead of the meeting, Ms Rayner said: “This government is pro-worker and pro-business, and we are committed to working with our brilliant businesses across the country to create a stronger, growing economy and to raise living standards as a result.”