EU regulations on rights for IT contractors could conflict with the UK labour market with negative results, a leading organisation has warned.

The Recruitment and Employment Confederation (REC) has warned that the EU Agency Workers Directive that is currently before parliament could be a poor fit for this country.

Kevin Green, the organisation's chief executive, claimed that professional recruiters will be bearing the brunt of the additional regulations.

He added: "[They may be] ill-adapted to the UK labour market and could limit job opportunities at a time when flexible working options are providing a crucial route into employment."

Among the key issues the REC has with the legislation include its wide definition of pay and the way short-term repeat assignments are handled.

Pat McFadden, business minister, described the legislation as a way of ensuring fairness for agency workers while maintaining the flexibility necessary for this country's labour market.

He said that it is being brought into affect in line with the recommendations made by the TUC and CBI.