Business secretary Greg Clark has told the cabinet of plans to implement aspects of the Taylor Review into law.
The leaked plans, which have reportedly received Theresa May's backing, include the introduction of a new right for gig economy workers to request a temporary or fixed-hour contract after 12 months.
The Swedish derogation rule, a loophole which enables employers to pay agency workers less than their permanent counterparts, is also likely to come to an end.
It is also suggested that new legislation will simplify worker status criteria, require employers to give all staff holiday pay and create rights to compensation for cancelled shifts.