Officials in the European Commission are completing work on legislation that could make or break the UK’s recruitment industry.

Although the Agency Workers Directive is not likely to become law until 2004-2005, lobby groups are gearing up to ensure the directive does not damage recruitment.

The regulations are still under wraps, and it is uncertain whether the Commission has sided with recruiters or trade unions on the issue of whom temps should be compared to in employment rights disputes.

‘It is very difficult to second-guess,’ said Marcia Roberts, director of external communications for the REC. ‘It all depends on whether the commission decides temps should be compared with someone at the agency level or at the hirer level - obviously we would prefer the latter,’ she said.

‘There is a view, which is held by the government and lawyers in the EU, that it cannot include pay in the directive because it has no legal right to do so.’

Roberts believes the directive will be released as a consultation document late next month.

Interested parties including the REC, the International Confederation of Temporary Work Businesses (CIETT) and the UK government will get the opportunity to respond to the document when it is published this week, Roberts said.

It will then be officially adopted as a proposal and put through a lengthy ratification process in the European parliament.

Roberts is concerned that the proposals could mean the cost of employing temporary workers is greatly increased. She said they could create a black market of disenfranchised recruitment organisations.

She added that the Commission should only implement the directive after it has carried out an impact assessment of the new regulations.

Roberts said: ‘What they seem to be saying is that the only sort of valid work is permanent employment.’