2 year rule for Temporary Workers causing me to lose my job!

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I'm a temporary worker hired on a PAYE basis through a well-known employment agency. My contact at the same client has been running for just under 2 years and to my surprise I recently found out that the company will not extend my contract again because they are concerned about a UK law which entitles me to claim a permanent position and all the workers rights, etc. that goes with that, if I stay at the company for longer than 2 years. The great irony is that I'm happy to stay in a contractual role, and in fact I've been looking for an alternative temporary position within the same organisation. I'm now wondering if there is any point in me doing this, does the 2 year rule apply regardless of whether I move roles as I would be staying in the company? Has anyone come across this before and have any advice?

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After 2 years they get the same redundancy rights as normal employees, so will cost them to terminate the contract in the next year. After 4 years they are pretty much an employee.
The only law that exists is the right to parity pay as part of the Agency Workers Regulations which is 12 weeks at a place, not 2 years.
However with almost all agencies you'll find your employment contract only covers you for the time you're in work so if you have a week off where you're not using annual leave to cover it then that is a break in employment.