Under the 2021 proposals, Labour said it would create a single legal category of “worker” to create “base level of protection” for all employees.
This would apply to employees on all contract types, save for those deemed to be “genuinely self-employed”.
It would mean all workers would automatically be entitled to rights including statutory sick pay, minimum notice periods, and the right to request flexible working patterns.
It would also end the two-year qualifying period for protection against unfair dismissal, with workers entitled to the right from day one.
The Financial Times has reported that, following a party policy forum in Nottingham last month, the party has agreed it will consult on the policy in government if it wins the next general election, expected next year.
A document agreed at the event stated it would explore how the new status could “properly capture the breadth of employment relationships in the UK,” the newspaper reported.
The text also clarified that bosses will still be able to fairly and transparently dismiss workers during probation periods.
‘Curry favour’
The document agreed at the event, at which trade unions, MPs and party members discuss future policy ideas, has not been published by the party.
However, it is expected to be made public before the party’s annual conference in October.
Unite, which did not support the document at the event, accused Labour of watering down its plans to “curry favour with big business”.
“They need to stop wavering and make a clear signal that they are truly the voice for working people,” added general secretary Sharon Graham.
Momentum, a left-wing group set up to support Jeremy Corbyn’s leadership of the party, said the text was “alarming”.
Other Labour-affiliated unions, including GMB and shop workers’ union Usdaw, backed the policy document.
Posting on X, Ms Rayner – who is also the party’s shadow future of work secretary – said Labour’s plan to strengthen workers’ rights would be a “core part of our manifesto” ahead of the next election.
“Tackling bogus self-employment is a key priority for a Labour government, and stronger protections against unfair dismissal will mean workers can no longer be sacked without reason from day one,” she added.