A proposed EU law designed to increase the rights of temporary workers would destroy jobs, business leaders have warned.

Their comments came as unions published a draft agenda for the TUC's annual congress in Brighton next month, which will demand extended workers' rights.

Under the European Agency Workers Directive, temporary workers would claim full employment rights - including equal pay - after just six weeks in the job.

The TUC wants it to go even further and is pressing the Government to end its opposition so equal rights would apply from day one.

Employers say the appeal of temporary workers is their flexibility. They can be drafted in at short notice for a set period of time to help with specific tasks.

But much of their appeal would be lost if temps were granted the same rights as permanent employees.

New figures from a Confederation of British Industry (CBI) survey showed 60 per cent of firms asked were worried the proposed law would reduce temping opportunities.

The CBI is calling for a much longer period before agency temp legislation comes in - ideally one year.

The annual CBI-Pertemps Employment Trends Survey of more than 500 companies also showed 58 per cent of respondents believed the directive would lead to significant extra costs.

John Cridland, CBI deputy director-general, said: "This short-sighted directive would do irreparable damage to the UK's successful temping market.

"Taking on temps would become much less attractive, denying many the chance to progress into full-time employment.

"Temporary work offers excellent opportunities, particularly for those on the fringes of the labour market.

"The TUC wants companies to have to offer full rights to temps from day one and this would help destroy the very jobs the unions are supposed to protect."

Ruth Hounslow, public affairs manager for Manpower, the world's largest employment agency, supported the principle of the directive but criticised its content.

She said: "It is based on the assumption that permanent full-time work is what everyone wants. It isn't. People do agency work because it gives them choice, develops transferable skills and enhances work-life balance.

"The directive could limit UK productivity by making it more bureaucratic and costly to use flexible staffing. Employers will be far less able to flex their workforce to meet changes."

Experts predict the UK will be hit hardest by the law because Britain has the largest temping market in Europe, employing more than 700,000 people.

Wednesday August 04, 2004