Labor bureau rules out legality of swapping salary with shares
Lawmaker Ron Lam
Employers have no legal grounds to replace salary with company stocks, whether in part or in whole, the Labour Affairs Bureau (DSAL) told lawmaker Ron Lam.
Following Lam’s query on May 26, the DSAL replied in an email, saying that, pursuant to local laws, there are no legal grounds for supporting employers to provide company shares in substitution for monetary remuneration.
“Pursuant to [Labour Relations Law], the relevant enterprise is not allowed to pay employee remuneration in the form of company shares,” the DSAL wrote in the reply.
It was recently revealed that Wynn Resorts Macau, S.A., a local casino licensee, had begun requesting – if not mandating – that some of their employees agree to receiving partial payment in company shares.
This first began top management, according to local Chinese newspaper Macao Daily News.
Later, in a reply to the Times’ enquiry, a spokesperson for the casino operator confirmed the management had been presented with the scheme, although a source later informed the Times that the coverage of management affected by the scheme reached as far as the assistant manager level.
Lam made an enquiry to the labor agency on this matter, citing help seekers’ requests.
In reply, the DSAL pointed out that pursuant to Item 4, Article 2 and Clause 4, Article 63 of the Labour Relations Law (No 7/2008), remuneration for work paid to employees must be provided in the form of cash in Macau Patacas.
The agency further explained that any attempts to replace monetary remuneration with non-monetary equivalents did not meet legal requirements and, pursuant to Clause 3, Article 14 of the same law, would be deemed invalid.
The DSAL pledged that it would continue to monitor compliance in labor and employment matters. It encouraged employees to file complaints with the bureau should they find their labor rights have been jeopardized, especially when their payments are cut without their consent.
