A report by the government's Better Regulation Task Force welcomes the creation of a "one-stop shop" Criminal Records Bureau, but warned of possible dangers, such as increasing the number of people excluded from work.
According to the Home Office, one in three men has a criminal record by the time they are 40.
The National Association for the Care and Resettlement of Offenders (Nacro) says the plans are "very sweeping".
It believes they could greatly boost unfair discrimination against ex-offenders and could even be "a recipe for increasing crime".
Its research shows unemployed ex-prisoners are twice as likely to re-offend as those with a job.
Task force chairman Lord Haskins said: "Given that a third of all males had been convicted of a non-traffic offence by the age of 40 - and millions more have received a caution - a 'checking culture' could easily result in large numbers of people being unnecessarily excluded from work.
"We believe that criminal record checks should be objectively used to prove unfitness for work."
The task force is also worried that increasing checks on potential employees' criminal records could become a substitute for proper supervision of people at work.
Lord Haskins said: "Most importantly, in the majority of cases criminal record checking would not improve protection of vulnerable people - and could in face create a false sense of security.
"It is no substitute for the use of reference checks and good management practices, such as training and supervision."
Nacro's director of policy, Paul Cavadino, warned: "Most of those abusing children at any given time have not yet been caught."
Red tape
The task force is also worried that "excessive use of criminal record checks" could increase bureaucracy, leading to delays in recruitment.
Under the 1997 Police Act, employers are able to request a criminal conviction certificate.
The government is trying to develop the Criminal Record Bureau so it can provide both information on past convictions and the Department of Education's List 99 on those deemed unsuitable to work with children.
The task force proposes setting out a checklist for policy makers developing such checks and reviewing the 1974 Rehabilitation of Offenders Act to simply categories of disclosable offences.
Cabinet Office Minister Jack Cunningham promised the task force's recommendations would be considered.
"I welcome the task force's important contribution to this sensitive and complex area of policy," he said.
Nacro has called on the government to issue strong guidance to employers, "based on the principle that applicants should not be refused employment because of convictions which have no relevance to the job concerned".
It adds that many young adults who have a history of minor offending go on to make excellent staff.
A-Z of Parliament
Talking Politics
Vote 2001
Bureau to weed out child abusers
(25 Jan 99 | UK Politics)
Employees to face demands for 'crimes list'
(14 Dec 98 | UK Politics)
Home Office
Department for Education and Employment
The BBC is not responsible for the content of external internet sites.
Links to other UK Politics stories