The consultation period for the EU's Green Paper on labour law ends in three months, and the initial proposals in the document have not gone down well with a wide spectrum of the industry.

Increased regulation of temporary workers is the proposal which has met the fiercest criticism. Bodies representing industry and contractors said the terms would be detrimental to the UK's "vital" temporary workforce.

One proposal is for a "floor of rights" to cover all workers regardless of their form of work contract, so all workers would be eligible for benefits such as paid leave, and would receive protection against instant dismissal.

Opponents say this would take much-needed flexibility out of the labour market and it is better for different workers to have different conditions, so they can be brought in at short notice and relieved of their duties just as quickly.

The proposals would make it harder for recruiters to make money from temporary placements, and might encourage firms to keep unsuitable workers in jobs, if dismissing them would be costly.

The Recruitment and Employment Confederation (REC)'s chief executive, Marcia Roberts, complained the EU "continues to pick away at a system that works, rather than assisting countries with high unemployment."

Tom Hadley, director of external relations at the REC, said the document may be a "waste of time", adding, "When the Agency Workers' Directive has been blocked and the Working Time Directive is in a state, do we really need something else now? "How much does this cost the European taxpayer? Instead of trying to harmonise everything, isn't it time to recognise that the labour markets of European countries are very different and bring out something which reflects that?" Hadley questioned whether the Green Paper "will actually achieve anything" and argued that the EU should concentrate instead on its "stated aim of job creation".

The REC is liaising with Euro-CIETT, the representative body for the recruitment industry across Europe, to respond to the proposals in the Green Paper.

The Professional Contractors' Group (PCG) also criticised the Green Paper. It said the EU's idea of "flexicurity" — the concept of flexible working combined with employment security — was ill-defined and confusing.

The PCG said the proposals would increase costs and admin for recruiters, and it complained there was no clear definition of the term "temporary worker".

"We're all for extending rights to temporary workers, as long as it applies to those workers who are vulnerable and not those professionals who want to work on a contract basis," PCG policy officer John Kell told Recruiter.

"Contract workers are attractive to companies," he added. "If firms need someone with a set skill for a set period of time, they can bring them in, but then they can terminate their contract when they need to, without owing them anything. Also, contract work is attractive for those who do it because they can charge a premium rate for their skill."

Kell said firms would suffer if the rights that should protect vulnerable workers were extended to contractors. "Either companies would find it harder to get the skills they need, or they would have to keep employees on their books for longer to help them develop those skills, which has a cost implication," said Kell The proposals could harm the interests of workers themselves, said Court Guinness, an IT freelancer since 1995. He said the days might soon end when contractors with a passport in their briefcase could quickly find work.

"This Green Paper potentially takes away what British contractors are famous for," he told Recruiter. "The Brits are the best at getting somewhere quickly and getting the job done. We are respected for our knowledge and skills, but the EU wants to put us in this bracket with vulnerable workers when we're not."

Guinness added that the role of recruitment agencies in the triangular relationship with contractors and employers would suffer. "The agencies are normally able to carry out their role very well because they are able to supply somebody quickly, but they won't be able to do this if this Green Paper goes through."

 • The REC's reaction can be viewed at www.rec.uk.com and a statement by the PCG is at www.pcg.org.uk