Contractors must opt out of the Contract Regulations before being introduced to a potential client by an agent or they could risk being cut out of the loop.

If contractors do not specifically opt out of the regulations, they are automatically opted in for good, reports freelancing site Contractorcalculator.com.

Robert Sinclair from contractor legal specialist Egos, warns that the timing of freelancers opting out is essential.

"Unless the contractor chooses to opt out of the regulations before being introduced to a client it is not possible to opt out subsequently, in respect of engagements with that client," he noted.

This comes after news that the IT graduate job market is gaining momentum.

Dan Hawes, co-founder of Graduate Recruitment Bureau, said that the market survived the economic crisis well and is now improving even more, reports umbrella contracting website Parasol.