14 employment agencies to go under due to pandemic: DSAL

Since the beginning of this year, a total of 14 licensed employment agencies have applied to cancel their agency licenses, the spokesperson of the Labour Affairs Bureau (DSAL) told the Times.
When asked whether the new Employment Agency Law, effective since March 2020, was the driver of the significant number of shutdowns in the industry, the DSAL clarified that the closures were “predominantly due to the pandemic.”
Meanwhile, there were five new applications for the Employment Agency Activity License from January to April 22. One was approved and the remaining four applications are still being processed.
The Employment Agency Law was approved by the Legislative Assembly on September 4 last year. It came into force on March 15 this year.
As stipulated in the new regulation, all practitioners working in employment agencies in Macau are legally obliged to provide license-related information, such as names and license numbers.
They are required to secure a license before running an operation and retain a physical business location that is not in a residential, industrial, hotel, parking, or public building.
The license applicants, after being vetted and qualified by the DSAL, have to provide a guarantee of MOP 300,000 issued by local banks. The beneficiary entity is to be the DSAL.
In terms of referral fees, the agencies cannot charge employers in excess of the amount listed on their fee listing, which needs to be published and sent to the DSAL. Meanwhile, the fees charged to job-seekers must not exceed 50% of their first month’s salary.
The new regulation is designed to safegaurd the entitlements of employees who seek the employment service.
The restrictions are intended to safeguard the entitlements of both employers and employees seeking the referral service.
Macau currently has a total of 134 licensed employment agencies, according to the data provided by the DSAL.
In an email reply to the Times, the DSAL reaffirmed its commitment to “continuing to monitor the practice of Macau’s employment agencies through regular inspection and education.”
To ensure a smooth implementation of the Employment Agency Law, the DSAL carried out a series of publicity endeavors, such as hosting explanatory sessions, setting up a dedicated webpage to elucidate the details of the new regulation, and more.