Angela Rayner, the deputy prime minister, is said to be at odds with Johnny Reynolds, the business secretary, over plans to hand workers full employment rights from day one in the job.

Business leaders have raised concerns over plans to give workers rights including protection against unfair dismissal, sick pay and parental leave.

At present people must be employed for at least two years to qualify for the right. According to The Telegraph Reynolds is said to favour shortening the qualification to nine months, but Rayner is pressing for a shorter probation period.

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The discussion is said to have been intense as the frontbenchers attempt to reach an agreement so they can deliver on the pledge to publish draft legislation within the first 100 days of the Labour government. The deadline gives them a fortnight to reach an agreement.

A Labour source said that they did not recognise the claims, pointing to the fact that Rayner and Reynolds are MPs in neighbouring constituencies and good friends.

Businesses and lawyers have warned that Labour’s plans for workers’ rights risk overwhelming employment tribunals.

Ben Smith, a senior associate at employment law firm GQ Littler, said this would “potentially open up a lot of claims” when the system is already suffering from backlogs.

Labour has promised to introduce a single body to oversee the enforcement of protections, which the party said would deal with disputes “before...

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