Angela Rayner has been accused of plotting to stop banter between employees with “wokerati thought police” set to have a “chilling” impact on workplaces. The Conservative Party has warned “banter police” would weigh on businesses already reeling from red tape and higher taxes.

Ms Rayner’s Employment Rights Bill includes making sure employers protect staff from harassment from third parties. Shadow Business Secretary Andrew Griffin has warned employers are already “bleeding out” because of Labour’s “war on business” and matters will only be made worse by the Bill, which is making its way through Parliament.

Under the Bill, an employee can take their employer to tribunal if they believe banter is offensive on grounds of race, sex or religion if bosses haven’t done all they can to prevent it.

Critics of the legislation warn it would pressure companies into hiring more diversity officers to monitor what staff are saying so they can demonstrate steps were taken to protect their employees.

The Tories have said the Bill fails to allow the expression of opinions on moral, religious, political or social grounds, which the Opposition party would insist on.

Mr Griffin warned the legislation would put firms under pressure to hire diversity officers to pursue “woke” agendas.

He told MailOnline: “Innocent office banter will be spied on by wokerati thought police. These banter tsars will have a chilling effect in workplaces.”

Prime Minister Sir Keir Starmer has hailed the flagship Bill, which is making its way through Parliament. He has described it as “the single biggest upgrade to workers’ rights in a generation”.

Its measures include bolstered rights to parental leave, a crackdown on “fire and rehire” practices and the removal of the lower earnings limit and waiting period for statutory sick pay.

Under the new legislation, bosses will also be required to offer workers a guaranteed hours contract reflecting the hours they regularly work, as well as reasonable notice of shifts and payment of shifts.

A Government spokesman said the Employment Rights Bill will not affect anyone’s right to lawful free speech, which the Government “stands firmly behind”.

He added: “Upsetting remarks do not fall within the definition of harassment. We are strengthening workplace protections to tackle harassment and protect employees from intimidating and hostile abuse as well as sexual harassment.”

A Government source said: “Courts and tribunals will continue to be required to balance rights on the facts of each case, including the rights to free expression.”