SMALL businesses are the ones which suffer when UK laws do not comply with EU regulations, says the Federation of Small Businesses.
The European Court of Justice is currently considering whether two pieces of UK law meet EU regulations.
The European Commission says current wording does not go far enough in protecting the health and safety of employees or in ensuring breaks during and between work.
A statement from the federation says small firms already spend an average of 28 hours per month proving compliance.
It added that proposed changes would add to this burden and reduce flexibility for employees.
They are calling on the government to better scrutinise draft law to prevent flawed legislation.
Pembrokeshire county chairman Stephen Cole said: "We are very worried that, just as our members have become used to complying with a new law, it can be altered still further."
He said greater care when drafting and approving legislation would prevent similar threats to the ability of firms to trade in the future.
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