The latest round of negotiations failed to find a way of meeting the demands of MEPs for a timetable for the scrapping of the opt-out and an offer from member state governments of a limit of 65 hours a week in return for the right of employees to work more than 48 hours.
With European elections looming in June, there was little scope left for further talks, and the opt-out stays in place.
The current EC will be leaving office at the same time as the elections. However, the new Commission may well decide to put forward alternative proposals later in the year, recommendations that could involve changes to the status of the opt-out.
Pat McFadden, the Employment Relations Minister, said: “We refused to be pushed into a bad deal for Britain. We have said consistently that we will not give up the opt-out and we have delivered on that pledge.
“Everyone has the right to basic protections surrounding the hours that they work, but it is also important that they have the right to choose those hours.
“In the UK and many other member states, choice over working hours has operated successfully for many years. The current economic climate makes it more important than ever that people continue to have the right to put more money in their pockets by working longer hours if they choose to do so.”
Lord Mandelson, the Business Secretary, said: “Millions of people are better off because of the opt-out and I am relieved we have been able to resist its removal.”