Millions of ‘flexible workers’ will receive new rights under Government reforms, as the UK addresses the challenges of the “changing world of work in the modern economy”.

The ‘Good Work plan’ comes in response to the independent Taylor Review, which was published last year and investigated what impact modern working practices are having on the world of work.

The review found that the strength of the UK’s labour market is built on flexibility, but a clearer focus is needed on the quality of work as well as the quantity of jobs.

Earlier this month, the Government set out proposals designed to ensure that workers know their rights and receive the benefits and protections they are entitled to, and that action is taken against employers who breach workers’ rights.

In some cases, the Government plans to go further than the review’s proposals, including: enforcing vulnerable workers’ holiday and sick pay for the first time; a list of ‘day one’ rights, including holiday and sick pay entitlements; a new right to a payslip for all workers (including casual and zero-hour workers); and a right for all workers — not just zero-hour and agency workers — to request a more stable contract, providing more financial security for those on flexible contracts.

Business Secretary Greg Clark said: “The Taylor Review said that the current approach to employment is successful, but we should build on that success in preparing for future opportunities.

"We want to embrace new ways of working, and we will be one of the first countries to prepare our employment rules to reflect the new challenges. We will take forward Matthew Taylor’s recommendations and commit to pursuing the quality of work as well as the number of jobs.”

Neil Carberry, CBI managing director (people and infrastructure), said: “Matthew Taylor’s review rightly recognised that flexibility is vital to the UK’s successful labour market.

Business agrees with the Government that flexibility and fairness must go hand in hand, and it is right to review rules to ensure they are fit for the 21st century.

“Similarly, responsible businesses back strong enforcement against the small number of firms whose poor practices tarnish the reputation of the vast majority that are a force for good.

“Business looks forward to working with the Government in the areas it has correctly identified for further careful consideration.

“It is essential that changes to UK employment law promote entrepreneurship and maintain the flexibility that has created so many jobs.”