The government will announce today that the agency workers’ directive will not be implemented until October or December 2011 ­ the last possible date under EU law.

We understand that minister of state for employment relations and postal affairs Pat McFadden will make a statement later today and that the draft regulations will be published this morning.

The purpose of the directive is to give agency workers some of the rights of permanent workers after 12 weeks. Under the Directive “equal treatment” relates only to basic working and employment conditions of temporary agency workers (eg pay, working time); the Directive does not affect the employment status of temporary workers.

David Frost, director general of the British Chambers of Commerce (BCC),says: “With these announcements, the government is sending out a positive message to business. Additional employment legislation would be a real barrier to job creation at a time when unemployment could approach 3 million. 

“Small businesses consistently report that new employment legislation is the area of red tape that is most harmful to growth.

“Smarter regulation – reducing the burdens on business – is opening up as a key battleground between the main political parties. This can only be good news for the UK economy.”

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