Business leaders have warned Angela Rayner Her plan for workers' rights could be harmful to jobs and growth.
Deputy Prime Minister and Minister for the Economy Jonathan Reynolds held talks with top executives of business groups and unions yesterday.
There, industry representatives urged the new government to do its best to limit the “damage” to businesses and the economy as a whole.
There are fears that overly strict rules will prevent companies from hiring more people.
The new raft of labour laws was promised within the first 100 days of Labour taking office on July 5.
Ministers will work out the details in the coming weeks, with Labour keen to address the concerns of businesses, as well as workers and their union representatives.
The policy means that employees will be given rights from day one when they start a new job and that zero-hours contracts will be dealt with more strictly.
Angela Rayner was warned last night that her workers' rights plan could be damaging to jobs and growth
Industry figures urged the new government to do its best to limit the damage to businesses and the wider economy in its plans (file image)
Before the election, Lord Mandelson, the architect of New Labour's 1997 election victory, urged the party to tread carefully so as not to jeopardise Britain's thriving businesses.
Labour also plans to scrap Tory moves to restrict workers from striking.
Tina McKenzie, policy chair at the Federation of Small Businesses (FSB), which has more than 215,000 members, said: “It is vital that the Government shows it is prepared to try to limit the damage to jobs, SMEs and the economy from any negative impacts of these proposals.
'The new government must listen to the real needs of small businesses in the region and help, not harm, them to provide jobs and deliver the high growth the country so desperately needs.'
And Neil Carberry, chief executive of the Recruitment and Employment Confederation (REC), said: 'There is still a lot to do. Businesses are still a bit worried, but we will get there.'
He added: 'Changes that are made in companies rather than with companies are bound to fail. It is a good start to talk to each other and work through some of the issues that really concern REC members about the plan that we have before us.'
Jonathan Geldart, director general of the Institute of Directors, said further consultation would be “essential to minimise the risk of unintended consequences from these reforms”.
Ms Rayner, a former trade union representative, said the meeting was the “first of its kind” and “marked the beginning of a new era of partnership that will bring benefits to everyone in the country who is striving for a better life.”
Concerns have been raised by sectors, including the hospitality industry, which rely on part-time and temporary workers.
They say these workers also value flexibility and hope this will be respected in the new rules.
Business lobbyists said yesterday that the talks were constructive but that they would await further details. More talks will be held as the legislation is worked out.