The Forum of Private Business (FPB) has warned of the dangers arising from potential new EU red tape governing the hiring and deployment of non-standard workers.

Responding to the consultation opened by the European Commission’s green paper on labour law, the FPB, which represents 25,000 small and medium-sized UK businesses, has highlighted the economic risk associated with small businesses having to cope with yet more red tape.

"A significant number of our members already think that red tape relating to employment is hindering their expansion," said the FPB’s chief executive Nick Goulding. "The last thing they need is for their hiring of contractors, agency workers and the like to be subject to extra rules as well."

The green paper aims to kick off a debate on the treatment of contractors, freelancers, self-employed workers, agency workers, and people on fixed-term contracts. It is an open-ended consultation paper, but the origins of the paper are clear.