New laws could soon ban firms from sacking and rehiring staff on lower pay, amid fears an increasing number of employers are 'exploiting' vulnerable workers.
SNP MP Gavin Newlands said firms are using the coronavirus pandemic as an excuse to cut costs - by forcing staff to accept significant and unjustified pay cuts.
His Employment (Dismissal and Re-employment) Bill, which has cross-party support from members of every party in Westminster, comes amid warnings Centrica and British Airways are both looking to lay workers off and rehire them on lower pay.
Trade unions have accused Centrica, which owns British Gas, of using the pandemic as a "smokescreen" to force its 20,000 employees to accept worse employment contracts, including no extra overtime pay, or risk their jobs.
Union Unite said British Airways is planning a similar model across its 12,000 workforce, with many told to accept significant pay cuts.
Newlands said: "The coronavirus pandemic has dealt a devastating blow to the economy and businesses across the UK, however it cannot be the case that some major employers exploit the pandemic by firing and then rehiring hard-working staff on significantly reduced terms.
"Households are already under financial pressure as people suffer a drop in income or job losses. For companies - such as Centrica and British Airways - to plough ahead with plans to water down workers' rights is shameful and must be stopped.
"It is absolutely critical that the UK government heeds the warnings and takes the urgent step to back my Dismissal and Re-employment bill - backed by cross-party MPs - and ban the exploitative practice before thousands of staff fall victim to this move."
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He added: "If the UK government is genuine in its pledge to help workers then it must back the measures in the Bill and ban employers from firing and rehiring staff on diminished terms.
"Beyond that it must also extend its furlough schemes into 2021 - failing to do so could lead to job losses on a scale not seen since the 1980s.
"With the first round of cuts to the support schemes due to hit next week, and the threat of job losses growing each day, the Treasury must scrap its self-imposed cliff-edge deadline and put workers first.
The Bill has received the backing of major trade unions across the UK including Unite, BALPA and GMB Scotland.
Centrica said the changes have been put forward "to win back customers, grow our company and protect jobs in the long run."
A statement added "Our employees’ base pay and pensions will be protected but simplifying and modernising their terms is essential if we’re to become more flexible and price competitive.
"We understand the impact this will have on colleagues and this is not an option we want to use but we must make these changes and we must conclude these talks before the winter period."
British Airways said it is "acting now to protect as many jobs possible". More than 1,000 pilots are due to vote on a 20% pay cut this week.
