Rethink temp staff directive – CBI

The Government should review its decision to give extra employment rights to temporary workers, as it is "damaging" the labour market, the CBI has said.

Following a survey which found only one in six firms plan to increase their recruitment of temporary workers, and one in five expect to cut back, the business group has called for a rethink.

The CBI called for a full review of the Agency Workers Directive, which boosted temp staff holiday rights and raised their pay.

Deputy director general Neil Bentley said the move, which came into effect in October, was having a negative impact on hiring intentions, which should set "alarm bells" ringing in Whitehall.

The group pointed out that in the current economic climate, hiring of temps should be increasing while permanent recruitment flat lines.

"We want a review next year to make sure it does not cause any more damage," said Mr Bentley. "It is in everyone's interest to help as many people as possible to get into the labour market."

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