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Press Release

Agency workers deal ‘disastrous’ for small businesses, warns FSB

20 May 2008

The deal brokered by the Government to give agency workers similar employment rights as full-time staff after a mere 12 weeks of employment would be disastrous for small businesses, the Federation of Small Businesses (FSB) has warned today.

Tina Sommer, FSB EU and International Affairs Chairman, said:

“This is a disastrous deal for small businesses, which rely on the flexibility provided by agency workers.

“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. If that flexibility is lost, many small businesses will stop using temporary employees.

“Part of the reason for the UK’s relative economic success in the past decade has been the flexibility of its workforce. This deal could put all that at risk at the worst possible time.

“After month-on-month increases in unemployment and with economic growth at its lowest point since the last recession, this is the last thing small businesses need.”



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Federation of Small Businesses

Federation of Small Businesses

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