The Government is pledging to create a new partnership between business, unions and workers with wide-ranging changes to employment rights.
An Employment Rights Bill will be introduced within the first 100 days, as promised by Labour in the run-up to the general election.
Measures will include banning “exploitative” zero-hours contracts, ending policies of fire and re-hire, and making parental leave, sick pay and protection from unfair dismissal available from day one in a job for all workers.
Flexible working will be the default from the first day in a job, while it will be unlawful to sack a woman who has had a baby for six months after she returns to work.
The Bill will also remove “unnecessary” restrictions on trade unions, including the Conservative government’s controversial law aimed at ensuring a minimum level of service during strikes.
Unions were strenuously opposed to the law, which was never used by any employers involved in the wave of strikes over the past two years.
Under the new Bill, a Fair Work Agency will be established to strengthen enforcement of workers’ rights.
There will also be a new fair pay agreement in the adult social care sector to establish national terms and conditions and fair pay rates, as well as a “genuine” national living wage which removes “discriminatory” age bands.
The Government said the measures represent the biggest upgrade to workers’ rights in a generation and will improve the lives of working people across the country, stressing that ministers will work in partnership with unions and business.
Unions warmly welcomed the Bill, which they believe will transform workers’ rights.
A draft Equality Bill was also announced, enshrining in law the full right to equal pay for ethnic minorities and disabled people, making it easier for them to bring unequal pay claims.
Fire Brigades Union general secretary Matt Wrack said: “The steadfast commitment to start delivery of the New Deal for Working People within 100 days will significantly improve the lives of workers after 14 years of vicious anti-trade union legislation from the Tories.”
Mick Lynch, general secretary of the Rail, Maritime and Transport (RMT) union, said: “These achievements are down to pressure from the trade union movement and we will continue to articulate what is in the best interests of railway workers and working people as a whole.
“We will also continue to actively engage with the Government on the pay issues in our sectors which can be resolved quickly.”
TUC general secretary Paul Nowak said: “This King’s Speech begins the process of repairing and rebuilding Britain after 14 years of chaos and decline.
“Whether its boosting workers’ rights, launching GB Energy, or bringing our railways back into public ownership, this is a serious statement of intent.
“Working people need – and want – a Government that will deliver meaningful change and be on their side.”