Millions of gig economy workers are to be given new rights to paid leave two years after Theresa May first announced plans to reform the UK's outdated employment laws.
New legislation will mean members of staff, including agency and zero-hour-contract workers will have to, by law, be told of their rights from the first day of a job, including whether they qualify for paid leave.
Meanwhile everyone will have their holiday pay calculated over 52 rather than 12 weeks.
Business Secretary Greg Clark said: "Today's largest upgrade in workers' rights in over a generation is a key part of building a labour market that continues to reward people for hard work, that celebrates good employers and is boosting productivity and earning potential across the UK."
In its 'Good Work Plan', the Government is setting out what it describes as the biggest package of workplace reforms for more than 20 years to meet the changing world of employment.
Legislation is being introduced to give workers details of their rights from the first day in a job, such as eligibility for sick leave and pay and details of other types of paid leave, such as maternity and paternity.
Meanwhile, the maximum employment tribunal fines for employers demonstrated to have shown malice, spite or gross oversight will increase from £5,000 to £20,000.
Measures will also be taken to ensure that seasonal workers get the paid time off they are entitled to.
The new rules in full
- Workers to be given a day one statement of rights setting out leave entitlements (including sick and maternity time off) and pay on their first day.
- Scrap Swedish derogation - end to the loophole that allows firms to pay agency workers less than permanent staff.
- Quadruple maximum employment tribunal fines for employers who are demonstrated to have shown malice, spite or gross oversight from £5,000 to £20,000.
- Extend the holiday pay reference period from 12 to 52 weeks, ensuring those in seasonal or atypical roles get the paid time off they are entitled to.
The Government said it was taking forward 51 of the 53 recommendations made by Matthew Taylor in his review into employment, especially in the so called gig economy.
A statement reads: "The reforms announced today reflect the views expressed by Matthew Taylor in his review into Modern Working Practice that banning zero hours contracts in their totality would negatively impact more people than it helped; that the flexibility of 'gig working' is not incompatible with ensuring atypical workers have access to employment and social security protections."
However, the TUC said the right to request guaranteed working hours is "no right at all".
"Scrapping the agency worker loophole is a victory for union campaigning. It was an 'undercutters' charter', explained TUC general secretary Frances O'Grady.
"But these reforms as a whole won't shift the balance of power in the gig economy.
"The right to request guaranteed working hours is no right all. Zero-hours contract workers will have no more leverage than Oliver Twist."
'Gig work must be protected'
"The Government's plans are reluctant baby steps at best, and hardly give confidence that post-Brexit UK will be a country of decent jobs," explained Len McCluskey, general secretary of Unite.
"This is a time of historic low wages and of chronic job insecurity. We need proper, substantial action to combat this but what is on offer today falls well short of what this country needs to deliver work that pays.
"People on zero-hour contracts and workers in the insecure economy need much more than a weak right to request a contract and more predictable hours."
Andy Chamberlain, at the Association of Independent Professionals and the Self-Employed (IPSE), said: "IPSE is cautiously supportive of these proposals, which appear to preserve the flexibility people crave and don’t snuff out the entrepreneurial spirit of people who want to strike-out on their own.
"We are glad the message appears to be getting through that for most people, gig work is good work.
"The overwhelming majority of people actively choose to be self-employed because they value the flexibility of being their own boss.
"The devil, of course, will be in the detail, and the Government must ensure it doesn’t legislate people out of self-employment against their will.
"IPSE will strongly resist any attempt to push all gig workers into the worker category, as this deprives people of the flexibility of being their own boss."