EU rule on temporary workers' rights puts jobs in doubt

Pubs could be forced to lay off staff after MEPs approved plans to give temporary workers the same pay and conditions as permanent staff.

The European Parliament voted on the issue last week, which will see relief bar and kitchen staff given equal pay, pensions and holiday rights.

But rather than make life better for temporary workers, the decision could make things much worse. The Confederation of British Industry (CBI) estimates that almost two thirds of companies will lay off some temporary staff and 160,000 jobs could be lost as a result.

A spokeswoman for the CBI said: "The pub industry employs a lot of temporary workers. A large number of relief staff are brought in over Christmas and at other busy times of the year. Throughout Europe there are approximately one million temps and 800,000 are here in the UK, which shows we have a huge problem.

"Businesses will have to look seriously to see if it is viable for them to employ temporary staff."

Tony Payne, chief executive of the Federation of Licensed Victuallers Associations, said it was bad news for businesses, especially pubs. "It's not so much costly, but extremely time consuming," he said. "The most important thing is to strictly follow the rules, otherwise it could be very expensive."

Mr Payne warned licensees that a raft of new employment laws would be brought in next April. These include:

• pregnant workers will be allowed 26 weeks paid maternity leave, eight weeks more than the previous period of 18 weeks
• Fathers will be allowed two weeks paid paternity leave and 13 extra unpaid weeks which can be taken over the ensuing five-year period
• Parents of children under the age of six will have the right to ask to work flexible hours
• Parents of disabled children under the age of 18 will have the right to ask to work flexible working hours.