THE solicitor-general, Vera Baird, has signalled the introduction of new rights for millions of carers of elderly relatives and sick children, raising the prospect of a clash with Lord Mandelson, the business secretary.

Under the proposal, in a bill to be outlined in the Queen’s speech on Wednesday, carers who believe they are being unfairly treated because of responsibilities at home could make a claim of “discrimination by proxy” against their employer.

Measures to enhance the rights of workers, signalled by Baird in an interview with The Sunday Times, are likely to be angrily opposed by employers, alarmed by the thought of costs rising at the start of a recession. Last month Mandelson took steps to reassure companies by ordering a review of all proposals to extend flexible working to reduce the risk of job losses.

In a separate change, the right to request flexible working, already enjoyed by the parents of children under six, will be extended to anyone who has a child under 16.

Despite the risk of upsetting Mandelson and business leaders, Baird said an extension of workplace rights was “even more important in times of recession”. She said the new right to claim discrimination by proxy was “long overdue”.

The proposal is a late addition to the equalities bill, an important part of the Queen’s speech. The carers’ provision, which also applies to those with sick children, is included because of evidence that many are treated less favourably by employers who see them as “less committed” than workers without their responsibilities.

The legislation is expected to make the negotiation of flexible working hours and time off in emergencies easier for more than 1m people in England who struggle to combine jobs with caring. About 4m others care for relatives but do not work.

The right to sue for “discrimination by proxy” follows a landmark claim brought by Sharon Coleman, the mother of a disabled boy. In a case backed by the Equality and Human Rights Commission, she argued she was discriminated against at work because she was seen as less committed to her job. Judges ruled she was indirectly discriminated against because of her sick son. Baird said officials were working on incorporating the verdict into the bill.

The measure will form part of a series of changes to grant new workers’ rights. Baird also hinted the government could in the long term revive plans to force businesses to carry out equal-pay audits to ensure women are not underpaid.

Baird made it clear that ministers would act if businesses did not show they were serious about closing the pay gap. “If it doesn’t [happen] then, after a limited time, we’ll need to reconsider,” she said.

She also hit out at government departments that pay female staff less. “Nobody in their right mind would work at the Treasury if they were a clever woman,” she said, citing research that found Gordon Brown’s old department pays women 28% less than men.

The equalities bill will extend the right to request flexible working to 4.5m parents of children up to 16. Government statistics show 90% of such requests are granted under the current system. Baird said: “We need to press on to make work and parenthood easier to manage side by side.”

Those who would welcome an extension of carers’ rights include Marianne Talbot, 53, who has had to juggle her responsibilities as director of philosophy studies at Oxford University with constant care for her 89-year-old mother Lesley, who suffers from advanced Alzheimer’s disease.

In September a deterioration in Lesley’s condition meant she finally had to go into a home.

Marianne said: “I was under huge pressure in an academic position, which already comes with a great deal of flexibility. I imagine it would be near-impossible for someone who was tied to a nine-to-five job.”

Harriet Harman, Labour’s deputy leader, is the other senior figure driving the equality agenda. How far will she and Baird take their mission? It has been speculated they could copy Norway, which has statutory quotas for the number of women on company boards.

Baird, however, said: “We want to encourage more women into higher office, and we do need to ensure that [message] goes through, culturally, to business, but whether specifically we would do quotas for company boards . . . no.”

Baird has also fought to cut “people trafficking” and the prostitution that drives it. Proposed legislation announced by Jacqui Smith, the home secretary, will make it a criminal offence for men to use prostitutes “controlled for gain”.

Baird played a big part in drafting the plans. “Happy hookers, if they exist, are in a very small minority,” she said. “Men will have to acknowledge that a very high percentage of prostitutes are controlled for gain and decide whether to take the risk.”

Additional reporting: Robin Henry