DSAL lacks accurate labor data, commits to legal review

The Labour Affairs Bureau (DSAL) lacks accurate data on several labor-related matters, as evidenced by its inability to respond to an inquiry from the Times.

The Times requested data on the average number of days of leave (including annual leave, weekly rest days, and public holidays) a worker in Macau enjoys and how this figure differs between the private and public sectors, as well as how it compares with other neighboring regions.

DSAL could not provide a figure, stating only that, “according to the provisions of the Labor Relations Law, employees with a labor relationship of one year are entitled to no less than six working days of paid annual leave in the following year.”

A little more clarity was provided as to whether there are any differences between resident and non-resident workers (TNRs) in relation to matters such as wages, holidays, and other work-related benefits.

The bureau confirmed to the Times that local labor laws provide no differences between benefits of workers regardless of their residency status, remarking that it is only possible to hire TNRs for job posts or vacancies that cannot be supplied from the local job market.

“The ‘Law on the Employment of Non-resident Workers’ stipulates that the labor relationship established with non-resident workers shall be supplemented by the general labor relations system. Therefore, non-resident workers enjoy the same rights as local employees and are protected by the ‘Labor Relations Law’,” DSAL said in its response to the Times. The bureau added, “The main premise of the SAR government’s labor import policy is to ensure priority and continued employment of local residents. TNRs will only be considered as temporary supplements when local human resources are lacking or insufficient and so [are] allowed to be imported.”

DSAL also advised that, “in any case, if there are local residents who are interested in positions that are classified as qualified work posts, enterprises must give priority to the hiring of local workers.”

“DSAL will strictly follow the principles and standards stipulated in the ‘Law on the Employment of Non-resident Workers’ and take into account the policies of the SAR government, overall socioeconomic development, supply and demand of the labor market, industry characteristics, operating conditions, and existing conditions of the applicant enterprise,” the bureau added.

The bureau also noted that  decisions are made after comprehensive consideration of factors such as employees’ conditions and the situation of recruiting local employees, and every application for TNRs is reviewed and approved based on facts.”

Lawmakers: reality

contrasts with the law

This response contrasts with the many calls that have been recently made by several lawmakers at the Legislative Assembly, who claim that the number of TNRs has been growing in Macau, particularly this year, due to a legal loophole and lack of supervision from DSAL. This has allowed companies to bypass the conditions by hiring local workers, temporarily or part-time to obtain quotas for hiring TNRs, and then dismissing the local employees. Lawmaker José Pereira Coutinho made this claim recently in a Legislative Assembly debate with the Secretary for Economy and Finance, Lei Wai Nong, as well as DSAL officials.

Several other lawmakers, namely those linked with the Macau Federation of Trade Unions, as well as Ron Lam, have also raised this topic and claimed to have proof that several irregularities, specifically involving the gaming concessionaires, are not being properly addressed by labor authorities.

On this charge, DSAL responded to the Times, advising, “The government attaches great importance to, as well as actively creates conditions for, local residents to have upward mobility opportunities in jobs. To this end, it continues to promote and monitor the six integrated tourism and leisure enterprises to provide training and promotion for local workers, and maintain the proportion of local employees serving as middle and senior managers in the six integrated tourism and leisure enterprises at a rate above 85%.”

During the debate on this topic at the Legislative Assembly, lawmaker Leong Sun Iok suggested the government amend this rate “maybe to 90%,” claiming that there are now more local workers capable of taking on higher posts.

DSAL said that, “when reviewing and evaluating the applications made by companies of TNRs for middle and senior management positions that can be filled by local workers, [these] applications will be gradually [not] approved, and the TNRs holding relevant positions will be ordered to retire in an orderly manner through administrative means to protect the labor rights of local employees.”

Legal reform is

last resort

The Times also asked DSAL if there is a current or foreseeable need to amend the current Labor Law to suppress some legal loopholes, such as those acknowledged during the pandemic which relate to the regulation of situations in which the companies can resort to extreme measures, such as wage reduction, unpaid leave, and part-time work.

In response, the bureau said it was “continuing to listen to relevant opinions and suggestions from people from all walks of life and conduct careful research based on the actual economic and social development of Macau,” before proceeding with the revision of laws and regulations.

The bureau added that, during the pandemic, DSAL “encouraged employers and employees to understand each other and negotiate amicably on work arrangements during this period, while cooperating with epidemic prevention measures,” reaffirming that “unpaid leave must be negotiated and agreed upon by both employers and employees. The employer cannot make unilateral arrangements on its own, and both parties should act in good faith and clarify the relevant absence period and other arrangements based on the actual situation.”

As for salary reductions, DSAL responded that “the current Labor Relations Law has clearly stipulated that reducing the basic remuneration of employees must also be agreed in writing between the employer and the employee, and must be notified to this bureau within 10 days before the salary reduction agreement can take effect.”