Agency workers to get more rights

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Years of wrangling over the need to give agency staff the right to the same pay rates as full time staff ended with a Government announcement of equal treatment after 12 weeks of employment.

Unions hailed the breakthrough as a victory for workers, but groups including the British Chambers of Commerce, Institute of Directors and Engineering Employers Federation warned it would hit the UK's flexible labour market.

The Government said it believed the deal could pave the way for an agreement in Europe on a new agency workers directive and was hopeful that resolving the issue will mean UK workers will continue to be able to opt-out of the European working time directive.

Business Secretary John Hutton said: "This is the right deal for Britain. Today's agreement achieves our twin objectives of flexibility for British employers and fairness for workers. It will give people a fair deal at work without putting their jobs at risk or cutting off a valuable route into employment."

Under the agreement, Britain's 1.4 million agency workers will be entitled to equal treatment on pay, overtime arrangements and holiday entitlement after 12 weeks in a given job, but the deal will not cover pensions or sick pay.

Equal treatment will be defined to mean at least the basic working and employment conditions that would apply if agency workers had been recruited directly by an employer.

The Government said it will now discuss with other European governments how to reach an agreement on a new agency workers directive that will enable the deal to be brought into legal effect in the UK.

Unite joint leader Tony Woodley said: "This is a landmark deal for 1.4 million agency workers currently working in the UK. The Government has listened, acted and paved the way to equal treatment in the workplace."

Tina Sommer, the Federation of Small Businesses' EU and international affairs chairman, said: "This is a disastrous deal for small businesses, which rely on the flexibility provided by agency workers."