Workers could be allowed to take a week off work to grieve following the death of a close friend or extended family member under changes being considered by Labour.

Ministers are consulting on proposed extensions to bereavement leave entitlements as part of Sir Keir Starmer’s Employment Rights Bill.

Under the plans, employees will be entitled to a minimum of seven-days bereavement leave after the death of an aunt, uncle cousin, niece or nephew.

The title of the individual “doesn’t matter” and instead leave would be based on “importance that person played in their life”, according to a Government document.

It says the death of a “chosen family” member will also qualify for time off work, such as “close friends”.

Workers would have to take the leave within 56 days of the death.

The proposals, which are under consultation until January, would also see employees allowed to take a week off for pregnancy loss before 24 weeks.

Under the current rules, parents can take up to two weeks off if they lose a child up to the age of 18 or have a stillbirth after 24 weeks of pregnancy.

“Family structures in modern Britain are diverse and evolving. The government is committed to ensuring the law reflects this reality,” the Government document adds.

“Blended families, extended families, shared parenting, and chosen families (close friends and relationships that are not related but take the place of a traditional family) deserve consideration and recognition too.

“For example, a blended family may include step-parents, step-siblings and half-siblings or others who play a significant parental or familial role.”

Joanna Marchong, head of external affairs at think tank the Adam Smith Institute, said the proposals “threaten to impose significant costs” on employers.

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She told The Telegraph: “This proposal may look compassionate but it threatens to impose significant costs and administrative burdens on employers at a time when businesses can least afford it.

“Allowing virtually any personal relationship to trigger a statutory leave entitlement creates huge uncertainty for firms.

“Employers won’t know when staff may walk out for leave, how long they’ll be gone, or what documentation they’ll need to request, potentially disrupting operations and increasing the need for expensive temporary hiring or overtime.”

Former Deputy Prime Minister Angela Rayner, who backed the workers’ rights Bill, had pushed for the protections to be brought in next year, rather than in 2027 as originally planned.

In an apparent compromise between the Government and Ms Rayner, the changes will be brought in from January 2027, instead of October 2027.

Business minister Kate Dearden told the Commons this week the change “strikes a balance between delivering on our promises for working people up and down this country, whilst not being stuck in parliamentary limbo for another year”.