Businesses condemn agency deal

11/06/2008

Businesses have denounced an agreement by the government to allow temporary workers the same rights as full-time staff , calling it ‘deeply disappointing’.

The deal will give the UK’s 1.3m agency workers equal salaries, holidays, overtime, and rest periods as their full-time colleagues, but will only apply to staff who have been working for more than 12 weeks.

Yesterday, business secretary John Hutton called the rules a ‘fair deal for workers’.

But business organisations dismissed Hutton's comments, calling the plans a ‘serious disincentive’ to employ agency workers.

David Frost, director general of the British Chambers of Commerce (BCC), said in tougher economic conditions businesses are looking for more, not less flexibility.

“The likely consequence of these changes is not greater protection for vulnerable workers, but less job opportunities for them,” he said.

“The directive's text sets an alarming precedent for temporary work across the EU. Under the terms agreed, temps will be entitled to equal treatment from day one of an assignment.

“Although the UK government will be pleased that other member states have allowed them to use their 12 week negotiated deal, British business is now in a very vulnerable position. The door remains wide open to a further erosion of flexibility for UK business," he added.