Thai Chamber of Commerce Opposes New Labor Protection Act Draft

Bangkok: The Chamber of Commerce opposes the new draft Labor Protection Act, stating that employers must be heard from all sides. The Thai Chamber of Commerce (TCC) believes the draft could affect competitiveness, elevate employment costs, and requires detailed consideration of employers’ viewpoints.

According to Thai News Agency, Dr. Poj Aramwattananon, Chairman of the Thai Chamber of Commerce and the Board of Trade of Thailand, expressed concerns following the House of Representatives’ approval of the draft Labor Protection Act (No. ..) B.E. …, which was passed in principle on September 24, 2025. The TCC has been approached by various members, including provincial chambers of commerce, foreign chambers, and over 20 trade associations, all expressing opposition to the draft.

The TCC, along with the Joint Standing Committee on Commerce, Industry, and Banking (JSCCIB), has submitted a formal objection to key bodies such as the President of the National Assembly, the Minister of Labor, and the Chairman of the Special Committee on the Labor Protection Act. They argue that the draft could negatively impact the economy by increasing employment costs during economic instability and lacking comprehensive consultation with employers.

Dr. Poj emphasized the importance of drafting labor laws that consider both employer and employee perspectives, warning against potential detrimental impacts on competitiveness, investment, and the broader economy.

While supporting international labor standards for workers’ quality of life, Dr. Poj raised concerns over specific provisions like reducing working hours from 48 to 40 hours per week and increased leave entitlements. These changes could raise labor costs, particularly affecting SMEs struggling with high costs and limited liquidity, possibly leading to business closures and layoffs.

He also noted potential income impacts for workers due to reduced working hours, suggesting internal labor relations mechanisms to establish suitable guidelines. He stressed the need for quantitative impact assessments and mitigation measures, as Thailand’s economy may not be ready for these changes, with many industries reliant on human labor and facing financial constraints for technological upgrades.

Dr. Poj concluded by highlighting the necessity for thorough stakeholder consultation and impact analysis per Article 77 of the Constitution for laws affecting large populations. The TCC opposes the draft due to its inconsistency with International Labor Organization standards, impracticality, and insufficient stakeholder consultation.