EU deal gives agency workers same pay and conditions as permanent staff

The Government agreed to the EU deal giving 1.3million temps the salaries, holidays, overtime and rest periods of full-time colleagues after just 12 weeks in a job.

At the moment, temporary staff are not entitled to this level of parity however long they have worked for one employer.

Progress: Britain's Secretary of State of Department for Business Enterprise and Regulatory Reform, John Hutton

No.10 approved the move in exchange for keeping its opt-out from the EU limit of a 48-hour week, although there will be a 60-hour maximum for most staff.

They will be able to opt out and work up to 60 hours, averaged over three months to let them work longer than that for busy periods if they agree.

But small business groups criticised the agreement. The Federation of Small Businesses, representing 210,000 firms with an average workforce of five, said a poll of members showed 96 per cent would now be less likely to employ agency staff.

The rules do not apply to occupational pensions, sick pay or benefits such as private medical insurance.

Nor will they give a temp the right to claim unfair dismissal at a tribunal.

About half the agency assignments in Britain will be affected as they last more than 12 weeks.

Business Secretary John Hutton said the outcome represented a 'good deal for Britain', adding: 'It provides a fair deal for workers without damaging Britain's economic competitiveness or putting jobs at risk.

'Securing the right for people to work longer if they choose is hugely valuable to the British economy.

'The agreement will give a fair deal to agency workers and prevent unfair undercutting of permanent staff while retaining important flexibility for businesses to hire staff on short-term contracts or at busy times.'

But David Frost, of the British Chambers of Commerce, said: 'This deal will deeply disappoint the business community.

'Safeguarding the opt-out will be a welcome relief, but it has come at the expense of vital flexibilities on temporary work.

'In tougher economic conditions companies 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.'

FSB chairman John Wright said: 'This deal smacks of the Seventies when major decisions were made behind closed doors and unions dictated employ-policy to the Government.

'The Government must not attempt to fool other European leaders into thinking this deal has business support in the UK.'

Tom Liptrot, of temporary recruitment firm Esprit People, said: 'Claims that this is a good deal for Britain are flatly untrue.

'What this deal will ensure is that anybody in a temporary job for more than 12 weeks is laid off, and companies who can send jobs overseas to cheaper, more flexible markets will do so.

'What agency workers need is fair pay. What they've got is an interfering nanny state intent on taking away their right to flexible work and willing to damage the economy to do so.'

Conservatives claimed the deal represented 'another blow to Gordon Brown's authority.'

Tory employment spokesman Jonathan Djanogly said: ' Business will be dismayed that when they most need a Government on their side, they have a Government getting on their backs.'