Britain looks likely to lose its fight against the EU’s proposed new rights for temporary workers. Employers argue that the change, which would give Britain’s estimated 1.3 million agency workers the same pay and workplace conditions as permanent staff, puts 250,000 jobs at risk.

Ministers have run out of allies in frantic behind-the-scenes talks to block the legislation, after finding themselves on the wrong end of a piece of classic EU horse-trading. All but four of the 27 member states have swung behind the plans, enough to force Britain to go along under qualified-majority voting.

The rights, which are due to be decided by EU employment ministers tomorrow, would apply to workers hired through an agency or other third party and would take effect a maximum of six weeks after a worker has been hired.

Business leaders said that the rights would put companies off hiring agency workers for busy periods or one-off projects and force permanent staff to work longer hours instead.

The TUC, however, has long campaigned for an end to “two-tier” workers doing the same job on different pay and conditions. It warned ministers that there would be a political price to be paid if they resisted the new rights.

John Hutton, the Business Secretary, will try to persuade fellow EU ministers to put off a vote on the plans, despite Britain’s weak position. He is furious that the Portuguese, who hold the rotating EU presidency, have linked the reforms to another long-standing employment issue, the working-time directive. This sets a limit on working hours but has been mired in disagreement for years.

Some countries, however, have been persuaded to drop their opposition to the agency workers’ rules because they have been promised a better deal on working hours. Among them is Poland, following the election of a more EU-friendly government. Britain is supported only by Germany, Ireland and Malta.

A source close to Mr Hutton said that the Government was unhappy at the linking of the issues. “The agency workers’ directive, as currently worded, could have a negative impact on employment. We are committed to the principle of agency workers’ rights, but the directive brings it in sooner than is in Britain’s interest. The two directives have been linked for the sake of expedience, rather than because they are related. We are trying to unlink them.”

Brendan Barber, the TUC General Secretary, urged the Government to end its opposition to the temporary agency workers’ directive. He added: “Agency workers have been vulnerable to real injustice for far too long. The Government should understand the strength of union feeling on this issue. There will be a political price to be paid if the UK Government simply follows the business agenda and not the social justice agenda and they fail to grasp this new opportunity to break the EU deadlock.”

Alan Duncan, the Tory business spokesman, said: “This is yet another EU attempt to impose a ‘one size fits all’ solution. Of course all temps in the UK need to be paid a fair rate and legislation to help this is welcome. However, this would be bad for individuals, bad for companies and bad for the economic health of the country.”

John Cridland, deputy director-general of the CBI, said: “A quarter of a million UK jobs are on the line if this draft directive goes through. The Government has, rightly, been rock solid in opposing this legislation.”

Helen Reynolds, chief executive of the Recruitment and Employment Federation, which represents temp agencies, said: “It is vital that any agreement does not result in fewer temping jobs in Britain. The recruitment industry places 1.3 million people into temporary work across the UK every week, allowing employers to bring in extra resource at short notice.

“Our independent polling shows that over 80 per cent of temps are satisfied with their assignment. There simply is not the abuse on the ground to support the need for this directive.”

Explore Career

• Graduate

• Senior Executive

• Recruiter Forum

• Top 50 Women

• Best 100 Companies

• Careers in

Times Recommends

• Inspirational leadership
• How to get a new job
• The reluctant CEO