Some business groups have pointed out a “clash” with the Keep Britain Working report and the Employment Rights Bill due to take effect in two years.

The proposed new law includes a right to guaranteed hours and cracks down on zero-hour contracts without the offer of work.

Helen Dickinson, chief executive of the British Retail Consortium said the review and bill were “at odds with one another”.

“In its current form, the Employment Rights Bill would make it harder for retailers to continue offering as many crucial flexible roles.”

Ms Nicholls at UKHospitality which has been working closely with Sir Charlie said “unless its carefully managed there is a clash”.

She said in its current form the Employment Rights Bill proposed workers were offered guaranteed hours based on an average they had done over a 12-week period.

“If we are providing supported pathways back into work or employing people with ill health and mental health issues the key is flexibility.

“Some weeks they can do eight hours, some weeks 40 hours, some weeks none,” she said.

Mr Hanrahan from chemicals manufacturer, Robinson Brothers said he “completely objected” to day one rights.

“It’s so difficult to try and recruit people in the first place, the hoops we have to jump through, the questions we’re not allowed to ask.

“Normally you have a probation period, in our company it’s six months, and now we’re saying day one rights. There’s a big disconnect between what you’re asking of us and reality.

“It will stop us employing more people because the risk of taking someone on and giving them day one rights that’s high risk, very high risk.”