Commercial law firm EMW Law claims that the Agency Workers Directive, which the European Parliament yesterday voted to accept, will restrict flexibility in businesses as they struggle to weather the economic downturn.
The directive will give temps and agency workers the same paternity rights, paid sick leave and holiday as permanent staff after 12 weeks in the job.
John Taylor, head of employment at EMW Law, said: "The Government should seriously consider whether now is the right moment to be imposing additional burdens on businesses.
"As rising unemployment increases the pool of people looking for temporary employment to tide them over, and more companies look to cut costs by increasing their reliance on agency rather than permanent staff, these new rules could make it very hard for this mutually beneficial arrangement to work."
However the TUC has welcomed the EU vote. Its general secretary, Brendan Barber, said: "Now agency workers will finally have a fair deal and be entitled to the same pay as permanent staff doing the same job, and receive much stronger legal protection from exploitation.
"The UK cannot opt-out of better rights for agency workers," he added.
Agency workers are legislative burden
New rules giving temporary staff equal employment rights to permanent employees will exacerbate problems in the labour market, according to legal experts.
