Agency workers could be set to secure equal pay and a wide range of new employment rights, such as paid holidays, as part of a new draft EU directive.

Digby Jones, director general of the Confederation of British Industry, has said the directive would be "very damaging to the UK labour market".

Forum Brief: Manpower

A spokesperson for Manpower told ePolitix.com: "Manpower recognises and supports the principle of providing an appropriate level of protection and a framework of basic rights for agency workers. However, Manpower is strongly opposed to fixing these by reference to the user companies.

"It is distressing that, despite the conclusions reached at the EU summit in Lisbon which acknowledged that improved labour market flexibility could lead to stronger economic performance and drive down unemployment, we are now approaching the Barcelona summit later this year with a proposal under consideration that tries to turn the clock back and impose increased rigidity.

"We understand the TUC's concern about access for agency staff to the workplace remedies that most of us take for granted. Manpower does provide our temporary staff with employment contracts that in turn provide the rights, amongst others, to be paid redundancy and to claim unfair dismissal, the type of issues that concern the TUC.

"This reflects our view that the relationship between temporary workers and their agency is a legitimate one that should not have to refer to an independent third party for its terms of reference. The directive should define a minimum standard but the responsibility for meeting it should rest with the agency.

"These proposals will stifle the demand for short-term temporary staff by imposing unnecessary and irrelevant burdens on user companies and achieve little for the temporary worker. By making this form of working unattractive UK business will become less competitive, employment costs will increase and job opportunities will decline.

"Manpower believes that a positive approach to workforce protection is to put the agency/temporary relationship onto a proper footing and recognise the value it delivers to all parties. That is the proper way forward for the UK and Europe as a whole and will deliver significant economic and social benefits."

Forum Response: Chartered Institute of Personnel and Development

Diane Sinclair, employee relations adviser at the Chartered Institute of Personnel and Development, told ePolitix.com: "Agency workers allow employers to rapidly meet changes in business demands and staffing crises.

"Also, temping is a useful route into work for the unemployed and young people, and provides versatile employment for people who do not want to tie themselves to a permanent job.

"The EU proposals are wholly inappropriate for the UK. They will restrict flexibility without significant benefit to anybody.

"The government must stand firm and resist proposals in Europe for the directive to have a wide scope. It must insist on a practical approach that protects flexibility for workers and employers."

Forum Response: Institute of Directors

A spokesperson for the Institute of Directors told ePolitix.com: "We totally support Digby Jones on this issue. The EU seem determined to erode the UK's competitive advantage by interfering with our flexible labour market. Quite frankly we are coming to the conclusion that Brussels is simply anti-business."