Gordon Brown is in secret talks with the European Commission over its draft directive on agency workers in a bid to halt an embarrassing defeat in Brussels.

The government has blocked the proposals which would give temps  full pay and conditions after six weeks in the job for four years arguing that the legislation could impose restrictive costs on bosses and damage the flexibility of the labour market.

Business groups have suggested temps should receive full pay after  a minimum of six months but Britain is becoming increasingly isolated in its opposition and most member states are now in favour of the proposals.

The Financial Times reported that Brown hopes a meeting with the European Commission this week will pave the way for a forum where employers and unions can “apply the directive flexibly”.

A derogation in the proposed EU law means that it does not need to be applied to every agency worker, where there are collective bargaining mechanisms in place to negotiate on a workers behalf.

The UK does not have a direct equivalent but ministers believe the forum would fulfil the same function.
France takes over the EU presidency from Slovenia in July and is keen to wrap up outstanding legislation.