Packaging companies need to "change their mindset" over temporary staff to prepare for new rules giving long-term agency workers the same rights as permanent staff, employment experts have claimed.

The warning came after business minister Pat McFadden announced that European legislation giving agency workers the right to same pay and conditions as full-time staff will only be introduced in October 2011, later than originally planned.

The delay until the last possible moment is designed to help businesses through the recession. However, it has been described as a "scandal" by unions.

Adopting the legislation, which applies to agency workers who have worked in a company for more than 12 weeks, was a condition of the UK retaining its opt-out of the European Working Time Directive and will cover the rights of 1.3m workers in the UK.

Packaging employment experts welcomed the move but told Packaging News that companies must make the most of the extra time they will have to prepare for the changes.

'Act to remain flexible'

Oliver Pryke, a partner in employment law at Taylor Vinters who has advised companies in the contract packing sector, said that companies should change their mindset over the use of agency workers.

He said that as the law only applies to agency workers who have worked in a single company for more than 12 weeks, companies needed to rethink their use of agency temps for anything other than short-term projects.

They should even establish their own banks of directly-employed temporary staff, who are so far not affected by the legislation, to avoid using agency workers altogether.

"This delay will only be good news if people don't bury their heads in the sand. These laws will come in and companies need to be asking how they will remain flexible when they do."

Rodney Steel, chief executive of the British Contract Packers and Manufacturers' Association (BCMPA), added: "A lot of our members, especially in the gift packing area, need to be able to flex their workforce. Any delay to legislation that could make this hard to do must be viewed favourably."

Dani Novick, managing director of packaging and print recruitment consultancy Mercury Search and Selection, said the delay was "welcome news for the packaging industry".

"Although not widespread in the packaging industry as a whole, agency workers are used in areas such as contract packing and in the hand finishing or assembly of complex packs such as gift packs.

"These regulations could have had a significant impact on costs so there be will many who are relieved to see the implementation has been postponed until after the next general election," she said.

Delay to laws a 'scandal'

But Unite, which campaigned for the UK to adopt the legislation, called McFadden's move a "scandal".

Assistant general secretary Tony Burke said that he was extremely disappointed at the news, having called for the introduction of "watertight" legislation in a speech at the Labour party conference.

"It is a disgrace that the Labour government has left it all this time to introduce the legislation," he said.