Agency workers will be given the same employment rights as permanent members of staff after a 12 week qualifying period, under proposals agreed between the government and unions.

Legislation is expected to follow in the autumn to guarantee staff agency staff equal treatment, but it is expected that this will depend on a similar EU directive being passed before then.

The announcement comes after six months of wrangling between unions and employers and has been greeted with a mixture of delight and trepidation.

The Federation of Small Businesses (FSB) warned that the deal will be ‘disastrous’ for small companies.

Tina Sommer, FSB EU and international affairs chairman, said that agency workers are already expensive but offer a degree of flexibility within the workforce. “If that flexibility is lost, many small businesses will stop using temporary employees,” she complained.

“After month-on month increases in unemployment and with economic growth at its lowest point since the last recession, this is the last thing small businesses need,” Sommer added.

On the other hand, lobbyists the trades union congress (TUC) has expressed its delight at the agreement. TUC’s general secretary Brendan Barber said “the issue of agency workers has been crying out for attention for far too long.”

TUC president Dave Prentis echoed Barber’s sentiments. “Not all agency workers get a bad deal at work, but those that do deserve the full backing of the law, and this agreement brings that protection a step closer.”

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