AN OUTRIGHT ban on fire and rehire was missing from government amendments to the Employment Rights Bill, largely welcomed by unions yesterday.

Agency workers will be included in a crackdown on zero-hour contracts so that such work does not become a “loophole” in the plans, Business Secretary Jonathan Reynolds said.

Umbrella companies will also be regulated under the plans, alongside moves to “align” trade unions with modern work practices and extend statutory sick pay.

He also announced plans to modernise trade union laws, including moves to streamline the recognition process and extend the expiry of mandates for industrial action from six to 12 months.

TUC general secretary Paul Nowak said: “Union-busting has no place in modern Britain.

“This Bill will help to stop this sort of egregious tactics and will mean more workers benefit from a union voice.

“The commitment to deliver e-balloting is also long overdue to bring voting methods into the 21st century.”

Unite general secretary Sharon Graham said that “in many areas the government had listened and acted,” but failing to introduce an outright ban on fire and rehire is a mistake.

“The new rules will continue to allow the most unscrupulous firms to use this disgraceful practice,” she said.

Collective redundancy rules will also change to increase the maximum period of protective award from 90 to 180 days.

Statutory sick pay will also be strengthened to make it a legal right for all workers — with the 1.3 million people paid less than £123 per week to get guaranteed sick pay, equivalent to 80 per cent of their weekly salary, as part of changes expected to come in next year.

Unison general secretary Christina McAnea said: “Better sick pay will put a stop to poorly workers traipsing into care homes full of germs, spreading them to elderly residents, because they can’t afford to stop home without a wage.

“Making work more secure will help lift families out of poverty so they can contribute to economic growth with increased spending power on the high street.”

GMB general secretary Gary Smith said: “It’s far from perfect, but this Bill is a massive step forward for the lives and wellbeing of working people.”

And teachers’ union NASUWT general secretary Dr Patrick Roach said the amendments on zero-hours contracts, statutory sick pay, and tackling non-compliance in the umbrella agency model “will make a big difference to many teachers.”