Tonga's chamber of commerce and industry is voicing their concerns with aspects of the proposed Employment Relations Bill 2013.
The chamber says the legislation is burdened with issues of crippling extra costs and trade unionism that will reduce employment.
The Matangi Tonga Online reports the chamber is at odds with Tonga's Minister of Labour, the International Labour Organisation and hard-liners in Tonga's Public Service Association over the legislation.
The chamber says that in the current weaker state of the economy businesses cannot afford to meet the large new costs that would be imposed as a result.
It says the move forces businesses to increase salaries and either reduce their capital investments or be forced to lay-off staff.