The bill aims to strengthen workers' rights in areas including unfair dismissals, flexible working and sick pay.
Opening the debate, Madders said it was a "landmark bill" that would "tackle low pay, poor working conditions and poor job security".
Greg Smith, the Conservative shadow business minister, said he backed the government on bereavement leave for pregnancy loss but added that in the "vast majority" of the bill the government had got the balance between the rights employees and employers "wrong".
Smith has proposed several amendments to the bill which would require the government to carry out impact assessments on the measures being introduced.
Former Labour minister Louise Haigh and Lib Dem MP Layla Moran have proposed an amendment which would ban non-disclosure agreements (NDAs) in cases of sexual misconduct, abuse, harassment and discrimination in the workplace.
Haigh, who resigned as transport secretary last year, said: "NDAs have a perfectly legitimate use in business to protect commercial confidentiality and trade.
"But they are frequently misused in order to bully people into silence when they have already suffered at work."
Madders said it was "an important issue that warrants further consideration" but did not commit to accepting their amendment.
Stella Creasy, Labour MP for Walthamstow, is trying to amend the bill to provide greater protections for paternity or parental partner leave.
The bill currently gives workers the right to paternity leave from day one of their employment, instead of the current 26 weeks.
Creasy's amendment would compel the government to review and consult on the period of protected paternity and parental partner leave, which currently stands at two weeks.
She said that was not long enough, adding that the UK had "the worst" paternity leave entitlement in the whole of the EU.
Madders said the government would be holding a review of the parental leave system, which would be separate from the bill.
Creasy's amendment had support from 81 MPs including 50 Labour backbenchers but she did not push it to a vote.