The REC trade body has called on Tony Blair to reform employment practices in Europe.

Managing director Gareth Osborne said Blair should encourage Europe to adopt a flexible labour market at tomorrow’s EU meeting at Hampton Court.

He said: “Attempts to introduce restrictive labour legislation, especially in the field of agency work, will not solve Europe’s ills.

“Greater flexibility will bring greater security as workers are empowered to adapt and change their skills throughout their working life.”

Temporary work allows workers to become more adaptable and can provide an alternative path to retirement for older workers, said Osborne.