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The CBI commented on Labour's proposals to amend the UK interpretation of the Agency Worker's Directive.

Katja Hall, CBI Chief Policy Director, said:

"The flexible labour market in this country has saved jobs and kept our economy going during tough times.

"Undermining this flexibility would put the very system which has kept unemployment down at risk. The agency directive was not welcomed by business, and further gold plating of EU rules can only cost jobs.

"Many businesses prefer to pay an agency to provide temporary workers using the Swedish derogation. This is perfectly legal, was supported by trade unions at the time and also gives employees security of income between jobs."