Business leaders urged Keir Starmer’s UK government to ensure its plan to bolster workers’ rights doesn’t stifle economic growth during the first talks with ministers and trade unions since the election last month.

Deputy Prime Minister Angela Rayner and Business Secretary Jonathan Reynolds hosted the meeting Wednesday to discuss its planned Employment Rights Bill, which will be laid in Parliament by mid-October. The bill is due to include a ban on “exploitative” zero-hours contracts and an end to “fire and rehire” policies, and it will make entitlements including parental leave, sick pay and protection from unfair dismissal available from the first day of employment.

The staffing industry was represented at the meeting by the REC. In a post on LinkedIn, REC CEO, Neil Carberry, highlighted that the REC’s focus at the meeting had been on challenging the government’s proposed day one unfair dismissal rights, the chill on the labour market, the complexity of employment status and the need not to demonise flexible workers.

Trade unions including GMB, Unison and Unite attended the talks, along with business lobby groups including the British Chambers of Commerce and the Confederation of British Industry.

“Today’s meeting is an important first step in ensuring that there is meaningful dialog with business as these proposals move forward, as the specifics will be crucial in determining whether they support or stifle economic growth,” said Jonathan Geldart, director general of the Institute of Directors.

Labour’s determination to overhaul workers’ rights has been complicated by the competing interests of the unions and business groups. Six weeks before their election victory last month, Starmer met with union chiefs to defuse a growing row following briefings to newspapers suggesting Labour would cave into business demands to water down its plans in exchange for support.

Rayner said Wednesday’s meeting has “kicked off a new era of partnership that will bring benefits to everyone across the country striving to build a better life.” Some unions also gave supportive statements, describing the plans as a “historic opportunity” to improve workers’ rights in Britain.

“Britain’s problems are best solved when governments, unions and businesses work together,” said Unison general secretary Christina McAnea. “Lifting standards and making work pay will drive economic growth to deliver proper investment in essential services.”

Other measures planned by Labour include making flexible working the default for workers and making it unlawful to dismiss a woman who has had a baby for six months after her return to work.

John Foster, chief policy and campaigns officer at the CBI, also welcomed the talks — though he warned that a consultation is “vital because it is business input that can ensure these reforms support growth, investment and jobs while avoiding unintended consequences.”

Tina McKenzie, policy chair at The Federation of Small Businesses, said “the new administration must listen to the real needs of small businesses on the ground and help, not harm, small business efforts to get people into work and secure the high levels of growth the country desperately needs.”