UPDATED 6.44pm Zero hour contracts, where workers have no assured work time when they sign up with an employer, are gone.

They will now be scrapped completely, a change from the legislation the Government wrote, which had said employees only needed to be given "reasonable compensation" if the contract was used.

LISTEN ABOVE: Council of Trade Unions President Richard Wagstaff speaks to Larry Williams

Prime Minister John Key said it didn't need Labour but he's happy for the support.

But Labour is claiming it as a victory because they were dropped after it offered its support if changes were made.

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Labour leader Andrew Little insists it was Labour's negotiating which forced the change. He's called it a win for workers, and a back down from the Government. 

"New Zealand workers can rest assured that they cannot be compelled to turn up to work with no guarantee of hours," Mr Little said.

John Key said Labour is bound to say that.

"They'll obviously want to say that for their supporters," he said.

"We're not saying we haven't worked with them, but my understanding of the changes are they're in line with what we already had in there, there's some clarification of those. But hopefully it's a better piece of legislation."

While National argues it's only a minor change to existing legislation, Green Party co-leader Metiria Turei isn't buying that.

"They're just trying to cover their embarrassment. They know that it is a significant back down by them," she said.