กกร. แถลงจุดยืนต่อร่างกฎหมายสำคัญ 3 ฉบับ “แรงงาน-อากาศ-โรงงาน” ชี้ควรประเมินผ⁠ล⁠ก⁠ร⁠ะ⁠ท⁠บรอบด้าน หวั่นบั่นทอนความเชื่อมั่นนักลงทุนJoint Private Sector Committee Declares Position on Three Important Draft Laws: “Labor-Air-Factory” Urges Comprehensive Impact Assessment to Maintain Investor Confidence

On Wednesday, November 12, 2025, the Joint Private Sector Committee of Three Institutions (JPCCI) comprised of the Thai Chamber of Commerce, the Federation of Thai Industries, and the Thai Bankers' Association declared its position on three important draft laws, namely: 1) Draft Labor Protection Act (No. ..) B.E. … 2) Draft Clean Air Management Act B.E. … and 3) Draft Factory Act (No. ..) B.E. … The JPCCI has called for a careful review of the legislative process, emphasizing that the promulgation of new laws affecting the economy at large should adhere to transparency principles, consider feedback from all sectors, and conduct a Regulatory Impact Assessment (RIA) according to international standards to ensure the laws enacted balance labor protection, environmental concerns, and the competitiveness of the country at large at the Activity Hall, 1st Floor, Banjerd Chalwej Convention Center, Thai Chamber of Commerce (Sao Chingcha), Bangkok.

Dr. Poon Ara, Chairman of the Thai Chamber of Commerce and Chairman of the Joint Private Sector Committee of Three Institutions (JPCCI), stated that the House of Representatives approved the principle of the Draft Labor Protection Act (No. ..) B.E. … for both bills on September 24, 2025, and is currently submitting one bill to the House of Representatives, which includes amendments such as defining working hours not exceeding 40 hours per week, setting a minimum of 2 days of weekly rest, increasing annual leave rights, improving menstrual leave and caregiving leave for family members, arranging time and place for breastfeeding or milk storage at workplaces, and defining the term “monthly employment” as a regular full-time employment with monthly wages while mandating the Wage Committee to adjust minimum wage rates annually.

The Joint Private Sector Committee of Three Institutions (JPCCI) has received complaints and concerns from members across the country, including over 70 provincial chambers of commerce, industrial councils, various industrial groups, more than 90 trade associations, and several foreign chambers of commerce opposing and expressing reservations about the aforementioned draft laws, particularly due to the lack of comprehensive Regulatory Impact Assessments (RIA), which is a crucial process for evaluating the appropriateness and impacts on various sectors. Given that the draft laws contain several provisions that could impact the overall economy and increase the cost burden of employment on employers during a still volatile economic climate, particularly for SMEs, which would face higher costs due to new regulatory requirements. Moreover, it could result in decreased confidence from foreign investors, impacting Thailand's overall ability to attract investment.

Draft 1: The Draft Labor Protection Act (No. ..) B.E. … by MP Jaras Kumkhaen and his team, which has three impacts:
1) Reduced financial flexibility for Thai workers (Income Shock)
If we consider the issue of revising the labor protection laws regarding the new regulation setting maximum working hours at 40 per week instead of 48 hours, this will drive workers who depend on working 48 hours plus overtime to meet their daily living expenses and debt obligations into using high-interest loan services. Furthermore, such strict laws will lead to inequity in enforcement, particularly among small establishments or SMEs, as well as workers in agriculture, services, retail, and wholesale sectors, which will ultimately lead to decreased hiring and an unavoidable shift towards informal employment or illegal hiring.

2) Reduced national productivity
Policies to reduce working hours without clear mechanisms to enhance labor productivity will entail risks of declining overall productivity in the country, worsening the nation’s competitiveness. It is projected that Thai labor productivity will contract by an average of -0.6% per year, while over 60% of workers lack basic skills to take on supplemental jobs due to lost income stemming from reduced working hours by 16.7%. This reduction in working hours does not enhance production efficiency but rather increases labor costs per unit, negatively impacting the overall production and export sectors of the country.

3) An employment system that is not beneficial for employees will culminate in informal employment or time-limited contracts, impacting the structural workforce such that workers will be driven into the GIG economy (freelance work), where they often lack guarantees and employee benefits, leading them to bear all operational costs. This reflects that many workers will fall into debt cycles and loans to engage in employment, including purchasing transportation or equipment or other expenses seen as debt for production (Debt of Production) that is exceedingly fragile.

Draft 2: The Draft Labor Protection Act (No. ..) B.E. … by MP Wanwipa Maisun and her team, in which JPCCI believes that passing this law is unnecessary, given that current labor protection laws are comprehensive and adequately safeguard employees. The inclusion of specific leave rights for women may be deemed discriminatory under Convention No. 111, as it may constitute privileges beyond what special measures for protection or assistance allow according to the convention. It might also be inconsistent with Convention No. 100, resulting in inequality and fairness issues between male and female employees. Accordingly, these matters should be determined based on agreements between employers and employees as per labor relations law principles on a case-by-case basis.

Furthermore, regarding allowing employees leave to care for family members or individuals with close relationships who are patients in hospitals for up to 15 working days per year, JPCCI suggests defining exactly who qualifies, as the broad terminology of “family members or individuals with close relationships” may create implementation issues. Clear and specific terminology should be employed, such as father, mother, child, husband, or wife, in line with the definitions cited in Section 193 of the Penal Code.

Moreover, specifying employer obligations to establish breastfeeding or milk storage facilities and the requirement that employees take breaks for breastfeeding or milk extraction at least twice for 30 minutes within an eight-hour workday over a period of at least one year after childbirth. JPCCI believes that currently, many operators have participated in the Ministry of Public Health's program to establish breastfeeding corners. Therefore, enhancing cooperation and support would be preferred over enforcing unnecessary binding legislative measures, especially as SMEs in agriculture, services, and retail sectors may not be able to comply.

Draft 3: The Draft Labor Protection Act (No. ..) B.E. … by MP Sia Champathong and his team, whereby JPCCI observes that defining the term “monthly employment” as employment characterized as regular and full-time, with employees receiving monthly wages, is an infringement on individual rights and freedoms in contract formation beyond necessity and contravenes contractual freedom principles.

Additionally, the stipulation that the Wage Committee must increase the minimum wage rate annually is seen by JPCCI as inappropriate, as adjustments to the minimum wage rate should depend on economic indicators reflecting employers’ payment capabilities and workers’ living costs, as already stipulated in existing legislation, while prioritizing the Wage Committee, provincial tripartite committees, and Section 87 of the Labor Protection Act B.E. 2541, etc.

Dr. Poon added that the JPCCI supports the improvement of workers’ quality of life according to international standards or International Labour Organization (ILO) principles regarding appropriate working hours, leave rights, dignity protection, and encourages labor relations mechanisms within organizations to determine suitable approaches to conduct quantitative impact assessments and develop thorough mitigating measures. Finally, it must be emphasized that the drafting process for laws affecting a significant number of people, or public laws, should involve listening to feedback and analyzing impacts from stakeholders comprehensively, as there is currently a lack of sufficient information that could negatively impact relevant groups directly.

Therefore, JPCCI opposes the new drafts of the Labor Protection Act, all three of which do not align with the International Labour Organization (ILO) standards, are not practical for implementation, lack comprehensive public feedback from stakeholders, and should be subject to a new comprehensive public consultation with representatives from provincial industrial councils, provincial chambers of commerce, employer organizations, and labor organizations (tripartite) from all relevant sectors, with the Ministry of Labour and the Department of Labor Protection and Welfare acting as a mediator in conducting such proceedings.

Regarding the Draft Clean Air Management Act B.E. …

Mr. Kriangkrai Thiennukul, Chairman of the Federation of Thai Industries, addressed the position of the Joint Private Sector Committee of Three Institutions (JPCCI), indicating support for the principle and certain measures, but clarity and non-redundancy with existing laws are necessary.

JPCCI is acutely aware of air pollution issues and supports the intentions of the draft law aimed at enhancing environmental quality and reducing PM2.5 dust problems. However, there are concerns regarding redundancy with existing laws, such as the Promotion and Preservation of Environmental Quality Act B.E. 2535 and the Factory Act B.E. 2535, as well as specific laws of agencies already authorized to oversee air pollution, which could create overlapping authority and unnecessarily increase costs for businesses.

Therefore, JPCCI proposes essential issues for review to ensure the implementation of this draft law is practical, including:
1. Structure of committees and participation by the private sector; JPCCI proposes including private sector representatives, especially from the Thai Chamber of Commerce, the Federation of Thai Industries, and the Thai Bankers' Association, in the committee and organizations overseeing clean air management policies at both national and provincial levels, according to the principle of 'involvement of those subject to the law', which would reflect data from production, service, finance, and actual economic sectors to ensure balanced policy-making leading to feasible measures.

2. Economic instruments; JPCCI believes that the “economic instruments” in the Draft Clean Air Management Act B.E. ... may overlap with existing laws, such as fuel funds, excise taxes, and will impact costs across all sectors. Solutions to pollution issues should focus on supportive and incentivizing measures to improve production quality to reduce pollution rather than imposing clean air fees from the first unit emitted or immediately introducing economic measures.

3. Establishment of a Clean Air Fund; the fund's objectives cover 17 issues but currently lacks clear prioritization or allocation for addressing pollution issues, and has not undergone necessary procedural review by the revolving fund policy committee as it should. There are concerns about the feasibility of establishing the fund practically.

4. Penalties and penalty stipulations; JPCCI supports strict law enforcement against violators, but the proposed draft law stipulates higher penalty rates than previous laws endorsed by the House of Representatives regarding both civil and criminal penalties, such as a criminal penalty of up to 2 years imprisonment or a fine not exceeding 50 million baht, or both, and failure to comply with clean air authority orders facing imprisonment of up to 5 years or a fine up to 100 million baht, or both, which may negatively affect the investment climate, particularly for negligent actions, which may not comply with the constitutional principle in Section 77 that only allows criminal penalties for serious offenses. Therefore, JPCCI proposes revisiting penalty levels to align with international standards and allowing a grace period for businesses and industry sectors to comply with the law.

JPCCI believes that having laws for clean air is necessary but must adhere to principles of non-redundancy, not increasing burdens, and creating a balance between environmental concerns and national competitiveness to guide Thailand towards sustainable development in environmental, economic, and investor confidence dimensions.

Thus, JPCCI finds it essential to conduct a Regulatory Impact Assessment (RIA) according to international standards capable of measurable effects for laws affecting the business sector by an independent and credible central agency.

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Concerning the Draft Factory Act (No. ..) B.E. …, Mr. Kriangkrai Thiennukul stated as follows:
JPCCI understands the concerns regarding the revision of factory laws on various issues, such as factories affecting communities and environments as reported recently, and moreover, JPCCI supports elevating industrial factory standards.

However, JPCCI is exceedingly concerned about the Draft Factory Act (No. ..) B.E. ... currently under consideration by Parliament, due to proposed amendments on several issues that could severely impact the Thai industrial sector, reduce competitiveness, and affect investor confidence, with several concerns as follows:

1. The reinstatement of the temporary license system conflicts with the principle of Ease of Doing Business;
JPCCI opposes the approach of reintroducing a temporary licensing system, as this system previously created issues related to complicated licensing procedures, delays, excessive paperwork, and opened avenues for corruption that contradict modern public administration principles and the B-Ready policy (Ease of Doing Business) that the government declared to avoid creating unnecessary barriers to business market entry, which continuously undermines the country’s ratings for Business Entry assessments in 2026.

Reinstating the licensing system aiming to facilitate the scrutiny of problematic factories addresses the wrong point, as the current law already empowers the government to inspect factories in cases of discrepancies with legal operations. Thus, reviving the licensing process is unnecessary and may create significant “business uncertainty”, especially when licenses are nearing expiration, potentially leading financial institutions and partners to hesitate in credit assessments or investments, and could also open pathways for corruption.

2. The increase in types of “Special Control Factories” should be limited to those with high risks only;
JPCCI does not disagree with the concept of establishing stricter measures for factories with high risks, but these measures should only apply to specific hazardous waste control factories or those with specialized risk; should the scope be too broad, it could lead to general factories not causing issues being subject to overly stringent controls, which would hinder business operations.

3. Increased criminal penalties must adhere to clear principles;
JPCCI observes that increasing penalty rates or altering penalty types, particularly shifting fines to imprisonment, must be substantiated with empirical data demonstrating that current penalty enforcement cannot address present issues and must adhere to proportional principles (Proportionality) and must be applied conservatively, to avoid infringing on operators' fundamental rights.

Imposing penalties without supporting data not only violates operators' fundamental rights but also undermines the confidence of both Thai and foreign investors,

4. Allowing the public to observe factory operations raises concerns about conflicts and trade secret violations;
JPCCI endorses public participation principles, but permitting direct public observation of factory operations is impractical, as it could compromise trade secrets and business data, moreover, unnecessary conflicts could arise between the public and operators.

JPCCI believes that the government should act as a mediator for inspections and transparently communicate information to the public; hence, if public participation is necessary, qualifications for observers and stringent measures for protecting trade secrets and business data should be firmly and clearly defined.

5. Requiring special control factories to obtain insurance raises concerns about the insurance market's readiness in the country;
JPCCI observes that the insurance market in the country is not yet equipped for such insurance types, which significantly impacts particularly SMEs that need to acquire insurance from foreign markets at high prices, thereby increasing costs and reducing competitiveness; the state should expedite internal market insurance development to align before enforcing requirements.

6. Issue resolution should focus on law enforcement, not adding new burdens to businesses;
JPCCI asserts that most factories in the country adhere to operational standards and comply with laws stringently. While supporting measures against factories violating laws or causing problems, it is inappropriate to create new measures adding burdens or obstacles to compliant factories.

The problems stemming from factories largely do not originate from legal flaws but rather from enforcement of laws, and existing mechanisms have not been fully implemented, such as the self-declaration system that still needs to be adequately utilized; therefore, the government should concentrate on enhancing the self-declaration system alongside increasing the capacity of factory inspectors rather than adding steps and burdens to the industry.

JPCCI reiterates that revisions to factory laws should uphold a balance between regulation and promoting national competitiveness rather than unnecessarily burdening operators, the state, and the public, and a comprehensive listening process for all sectors is essential, along with conducting a Regulatory Impact Assessment (RIA) specifically analyzing economic impacts by accurately calculating costs and benefits, to ensure that this new law can effectively address pertinent issues without creating excessive burdens and without undermining investment confidence, enabling Thailand to progress steadily in environmental, economic, and investment confidence aspects.

In closing, JPCCI calls for a meticulous review of the legislative process, emphasizing that the enactment of new laws affecting the economy at large should adhere to principles of transparency, open feedback from all sectors, and conducting Regulatory Impact Assessments (RIA) according to international standards to ensure that the laws passed achieve a balanced protection of labor, the environment, and national competitiveness.

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Source: Office of the Joint Private Sector Committee of Three Institutions (JPCCI)
Email: [email protected]