Agency Workers Directive - Government blocks proposals

At an EU summit last night, Business Minister John Hutton managed to delay the implementation of the Agency Workers Directive - legislation which could cost UK businesses up to 250,000 jobs.

The controversial legislation, which was first announced 5 years ago, would give full employment rights to agency workers after just 6 weeks of starting an assignment.

Most industry bodies in the UK are firmly against the Directive, as it is seen as a "one size fits all" policy which will not suit business in this country.

CBI deputy director general John Cridland has said: "A quarter of a million UK jobs are on the line if this draft directive goes through. The government has, rightly, been rock solid in opposing this legislation."

The Forum of Private Business (FPB) has warned that the proposals to place temporary workers on an equal footing with permanent staff could make smaller businesses uncompetitive and lead to job losses.

The business pressure group believes that owners of smaller firms will be less inclined to employ temporary workers as a result of the Agency Workers Directive creating more red tape and costs.

Experts at a leading freelance site have calculated that labour costs for UK business will rise from 10-20 per cent if the legislation is passed in its current form.