Temporary workers will gain the same rights as permanent staff once they have completed 12 weeks of work, the government has said.

The legislation is set for the autumn, although similar EU directives may be passed before then.

The result is an important victory for trade unions, who have been campaigning on behalf of Britain’s 1.4 million agency workers. It is also a blow to employers groups, such as the Confederation of British Industry, who have urged the government to dismiss such proposals for cost reasons.

Andrew Miller, the MP whose private member’s bill is responsible for the measures, said: “This agreement provides for equal treatment for a huge number of agency workers, some of whom have, in the past, been exploited by rogue employers.

“The worst cases have included using migrant labour to drive down terms and conditions to the detriment of indigenous workers, which, in turn, has caused racial tension.”

Under the proposals, agency workers will be given equal pay and holiday entitlement, but sick pay and pensions arrangements are not covered.

The government’s acceptance of the proposals will be interpreted by political analysts as an attempt to placate Labour’s increasingly restless backbenchers, who view the status of agency workers as a litmus test of the party’s concern for society’s most vulnerable members.

The Liberal Democrats have given the proposals a lukewarm response.
Lorely Burt, Lib Dem business spokesman, said: “This new agreement is a welcome step forward, as temporary and agency staff are some of the most vulnerable employees.

“However, many people choose agency work because they value the flexibility and increased employment opportunities it brings. Companies need temporary workers to cover staff absence and recruitment gaps,” he continued.

“The government must reassure these workers and businesses that clamping down on unscrupulous companies will not be at the expense of a flexible labour market.”