Speaking at the Conservative Party Conference in Manchester, Djanogly said the Conservatives would delay the implementation of the controversial directive because it would cost British businesses £40 billion over the next 10 years.
Commenting on the announcement, Kevin Green, chief executive of the Recruitment and Employment Confederation (REC), said: "We have been calling on the Government to delay implementing this directive until the last possible moment in 2011. We are pleased to see the Conservative Party recognise that the cost of getting the implementation of this directive wrong could be huge.
"It is vital that the labour market recovers before the regulations are implemented. This is a complex issue and by waiting until December 2011 we can ensure that we minimise the adverse affect this legislation may have on jobs.
"The Agency Work Commission set out a framework for a fair implementation of this directive that works in practice. The REC will work with the Government of the day to make sure that the recommendations of the Commission are implemented.'
And Alan Rommel, managing director of Parity Resources, added: "There are two sides to this story. I think it is great to push the directive back because it could restrict flexibility.
"I support the AWD for the right people but it can be restrictive for some."