A proposed government Temporary Agency Workers Bill has been criticised by the Recruitment and Employment Confederation (REC).
The private members bill was intended to support temporary staff and allow them the same rights that permanent employees have when working for a company.
This would include basic wages, sick pay and holiday pay, allowing them to feasibly continue agency work on a long term basis.
Unions claimed that with more than one million temporary workers in the UK, the government needed to provide more effective employment protection.
However, REC was critical of the bill, explaining that it would "limit the flexibility of the temporary work model" and reduce demand for temporary staff.
Tom Hadley, external relations manager at REC commented: "The trade unions aspire to the regulations in force in other countries yet the reality is, unemployment remains extremely high in many of these places and greater flexibility is increasingly being considered as a way to ease the problem."
He claimed that increased bureaucracy would reduce temporary job opportunities and damage the British economy.