Employers will face the threat of forced arbitration if they refuse a request by an employee for more flexible work arrangements, under changes that will apply to millions of workers and be included in the Albanese government’s new industrial relations bill.

The expansion of flexible rostering rights is set to further inflame tensions between Labor and the business sector which is already riled at other measures in the bill including a ramping up of industry-wide bargaining and the abolition of the construction industry watchdog.