With the Government seeking to move a million people back into work, a deal of this nature will not help. David Frost, British Chambers of Commerce

New plans will see agency and temporary workers receive the same rights as permanent staff once they have been employed for 12 weeks.

Under the agreement, reached between the CBI and unions, temporary and agency workers will qualify for the same pro-rata pay and conditions as full-time workers after 12 weeks but not other in-work benefits, like sick pay and pensions. They will have to work the same length of time as permanent workers to get maternity leave.

There will be anti-avoidance measures to stop employers changing job descriptions before the end of the 12-week period. If the deal is accepted by the EU, it could lead to trade-off rules on the maximum working week, with the UK conceding equal treatment for agency workers in return for keeping its opt-out from the re-negotiated Working Time Directive, now under discussion in Brussels.

However, whilst temporary workers may be relishing the prospect of equal employment rights, the business sector is not in celebratory mood. Commenting on the deal reached on temporary agency workers, David Frost, Director General of the British Chambers of Commerce, said:

"This is a bad deal for the country and a bad deal for business. The success of the UK economy over recent years has been down to our flexible labour market. When the economy is weakening this is not the time to further reduce flexibility. In addition to this, with the Government seeking to move a million people back into work, a deal of this nature will not help."