Deputy Prime Minister Angela Rayner, who is spearheading the ‘New Deal’, has said the Government will establish a new watchdog called the Fair Work Agency with “real teeth” to clamp down on employers that breach workers rights. 

Other measures in the ‘New Deal’ include a ban on “exploitative” zero-hours contracts and an update to trade union legislation to make it “fit for a modern economy”. 

The proposals have proved controversial among business leaders, with some voicing worries it could affect their ability to hire seasonal staff.  At the same time, some union chiefs have opposed Labour’s plans for a formal consultation with industry.

Ms Shoesmith said: “We urge government to work with us as they develop plans for a new Employment Rights Bill and on the proposed Industrial Strategy, so it is underway, sooner rather than later.” 

The REC said its members were reporting demand for staff across a broad range of industries, including accounting, construction, engineering, nursing, catering and IT.

A spokesman for the Department of Business & Trade (DBT) said: “This government is committed to working in partnership with business, including consulting extensively on how the New Deal for working people can achieve positive change for businesses and workers alike. 

“The Employment Rights Bill is key to delivering that, including a ban on exploitative zero hours contracts, more voice for people in their workplace and more money back in people’s pockets to boost growth.”