SME Business News

A deal has been reached between the government and employers, that gives agency workers the same rights as full time employee’s, after 12 weeks.

While business secretary John Hutton sees the agreement as “the right deal for Britain”, small business owners are concerned over what they see as an already expensive option to hiring full time staff.

“Agency fees and high hourly rates mean temporary workers, far from being seen as cheap labour, are already a costly but useful way of responding to fluctuations in demand,” said the FSB’s Tina Sommer. “If that flexibility is lost, many small businesses will stop using temporary employees.”

With unemployment rising and the threat of recession looming the FSB says “This is the last thing that small businesses need.”