Foreign business groups cautioned that tighter labor rules could backfire on jobs and investment, as the American Chamber of Commerce of the Philippines (AmCham) urged lawmakers to take a more balanced approach to proposed measures targeting contractualization and informal work.

In a statement following a Senate hearing led by Raffy T. Tulfo, AmCham said it supports efforts to strengthen worker protection but warned that sweeping restrictions may carry unintended economic costs.

“AmCham fully supports the objective of promoting fair employment, protecting workers’ rights, and ensuring dignified and secure livelihoods for Filipino workers,” the group said. However, it noted that proposed bills could dampen foreign investor confidence and potentially limit job creation.

The business chamber pointed out that existing regulations already govern contracting and subcontracting, suggesting that stricter enforcement may be more effective than introducing new layers of policy that could create overlap and confusion.

It also stressed that flexibility in hiring remains critical for companies managing seasonal demand, project-based work, and specialized services. Overly restrictive rules, it said, could reduce efficiency and discourage business expansion.

AmCham further flagged the broader investment implications, noting that predictable regulations and labor flexibility are key considerations for firms operating across Southeast Asia. More rigid policies, it added, may put the Philippines at a disadvantage compared with regional peers.

“In light of these considerations, AmCham advocates for a balanced and pragmatic approach through continued dialogue among government, labor groups, and the private sector to ensure that policies are both protective and conducive to economic development.”

The group said it remains open to working with stakeholders to craft policies that protect workers while sustaining growth and employment opportunities.