Prime Minister Sir Keir Starmer said the reforms “underpin our ambition to create an economy that works for everyone, closing the skills gap and supporting more young people into meaningful employment”.
Michelin star chef Tom Kerridge gave his backing to the scheme, saying “these incentives will give our industry a great boost”.
The Conservatives have claimed the government’s Employment Rights Act and hike in national insurance contributions on employers has had an impact on young people looking for work.
Shadow work and pensions Secretary Helen Whately said “the best way to tackle youth unemployment is to back businesses to create jobs, not tax them out of existence to fund benefits and subsidies”.
The Conservatives say they would cut business rates for “thousands of high street businesses” and “roll back” the legislation coming into effect later this year.
Under the act, which applies to England, Scotland and Wales, workers will have the right to claim unfair dismissal from six months into their employment. Currently, there is a two-year qualifying period.
Labour had pledged to offer all workers the right to claim unfair dismissal from their first day in a job as part of their election manifesto.