Scrapping the role of Welsh Language Commissioner is unacceptable, says Arfon AM Siân Gwenllian.
"This change will weaken the rights of Welsh speakers - a move that Plaid Cymru wil never support.
"It is vital that any new body tasked with promoting Welsh is arms-length of government and truly independent.
"Whilst we agree that there is scope to cut bureaucracy, curbing the rights of Welsh language speakers is not the way to do this.
"Plaid Cymru would like to see the establishment of an Agency to promote the language with greater strategic focus on ensuring economic and cultural benefits.
"Refusing to extend the language standards to the private sector represents a missed opportunity to strengthen the rights of Welsh speakers in the workplace. Following this week's furore over Sports Direct's discriminatory language policy, it is clear that legislating is the only way of protecting those rights.
"The Welsh Government has no chance of achieving its aim of creating a million Welsh speakers by 2050 unless robust regulation is at the heart of its strategy.
"Today's announcement is a backward step and Plaid Cymru will continue to challenge the Labour Government to create a more comprehensive and wide-ranging strategy."