By Marcus Leach

Prime Minister David Cameron could over-rule Business Secretary Vince Cable as the Government starts to reconsider its approach to the implementation of the Agency Workers Directive.

The Agency Workers Directive is set to be implemented by Mr Cable on 1st October 2011, and is set to give agency workers the same rights as full-time staff.

However, reports in The Daily Telegraph suggest Mr Cameron's office have secretly commissioned independent legal advice on whether the Agency Workers Directive could be diluted.

The move to water down certain aspects of the Directive was welcomed by the Institute of Directors (IoD).

“The IoD applauds the Government’s decision to rethink the implementation of the Agency Workers Directive," Alexander Ehmann, Head of Regulatory Affairs at the IoD said.

"The IoD has long argued that vital improvements can be made by stripping away the unnecessary gold-plating in these regulations.

“We urge the Government to look again at the advice that the IoD received from the European Commission in 2009, which stated that the rules only need apply to businesses with binding pay scales and collective agreements.

"The desire to preserve a 12 week qualification period agreed between the TUC and CBI should not be allowed to derail a significant easing of the regulatory burden on British businesses.”

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