ExCo approves new maternity leave bill

The Executive Council (ExCo), the advisory body to the Chief Executive and core policy-making organ of the government, has finalized discussions on a bill to amend the Labor Relations Law, specifically focusing on maternity leave regulations and employer compensation. The proposed changes, discussed during a press conference late last week, will soon be submitted to the Legislative Assembly for review.

The draft law, known as “Amending Law No. 7/2008 (Labor Relations Law),” seeks to address key issues regarding maternity leave and dismissal compensation. Notably, the bill proposes raising the maximum monthly basic remuneration used to calculate dismissal compensation from MOP20,000 to MOP21,500. This adjustment reflects a comprehensive analysis of local economic conditions and employment status from April 2021 to April 2023.

In addition to changes in dismissal compensation, the ExCo has also completed discussions on administrative regulations for a new “Subsidy Scheme for Employers to Pay Maternity Leave Remuneration.” This initiative is designed to help employers adapt to increased maternity leave requirements while fostering harmonious labor relations. Under this scheme, employers who provide 70 days of maternity leave remuneration to eligible female employees between May 26, 2023, and December 31, 2025, can apply for a subsidy equivalent to the employee’s basic salary for up to 14 days.

The proposed regulations aim to enhance support for local businesses while ensuring that employees receive fair maternity benefits. The ExCo spokesperson, André Cheong, said these measures are crucial for promoting workforce stability and improving overall labor conditions in the region.

The regulations are set to take effect immediately upon promulgation. Stakeholders from both labor and management sectors are encouraged to engage in discussions as the bill moves through the legislative process.

Nadia Shaw