The new government's moves to limit the effect that the European Working Time Directive has on IT contractors have been welcomed by a leading trade association.

IT contractors and other temporary workers in the flexible labour market have played a key role in helping UK firms through the recession, the Chartered Institute of Personnel and Development (CIPD) claims.

As a result, it is vital that employees are given the opportunity to work longer hours, should they want to, claims the CIPD director Stephanie Bird.

"Maintenance of the UK's growing flexible working culture offers the prospect of a far greater contribution to well-being and work-life balance than the kind of regulatory approach embodied in the Working Time Directive," she said.

The European Working Time Directive attempts to limit the maximum number of hours that can be worked in a seven-day period to 48, but national governments must incorporate it into their own legislation for it to be effective.