Many agency workers are earning less than the minimum wage because employment agencies are illegally charging inflated costs for transport, accommodation, food and clothing, the TUC claimed today.

A report published this week by the union said that regulations which were brought into being in 2003 to protect agency workers from exploitation were falling short of preventing abuse, particularly of migrant workers.

In spite of the regulatory changes, the TUC said that agencies continued to routinely charge employees for cashing cheques, for transport and for safety equipment and clothing.

After such deductions, workers' hourly pay frequently falls below the legal minimum wage of £4.85.

The TUC said that many workers were unaware of their rights, or were too afraid of losing their jobs, and so failed to make complaints against their employment agencies about unfair costs.

The organisation urged the government to support the principle of a European Union directive to protect the rights of temporary agency workers, which, it argues, would make it much harder for agencies to behave unscrupulously and would improve job security, pay, working time, holiday and maternity rights.

Brendan Barber, the TUC's general secretary, said: "The current regulations which are designed to protect agency workers from abuse at the hands of rogue agencies are clearly doing nothing of the sort.

"Vulnerable workers need protection and the government should give its full support to the European directive so that the legal standing of UK agency workers is improved," he said.

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