Labor law revisions advance as lawmakers clash over leave proposals

Lo Chi Fai

The bill proposing amendments to the Labor Relations Law on matters such as maternity leave and annual leave passed its first reading with unanimous approval from all lawmakers.

The bill was presented during yesterday’s plenary session of the Legislative Assembly (AL) following a previous discussion at the Standing Committee for the Coordination of Social Affairs (CPCS). The government proposed increasing maternity leave from 70 to 90 days as well as introducing a mechanism to increase the number of annual paid leave days from six to up to 12 days.

As previously reported, this mechanism aims to increase annual leave entitlement by one day every two years for workers who remain with the same company, up to a maximum of 12 days per year.

Although generally agreeing with the intent behind the proposed amendments, lawmakers were divided and expressed contrary views on most matters.

On the one hand, those siding with workers expressed the hope that the amendments would continue to be progressively improved to increase benefits for local workers. They recalled that the provisions for annual leave currently in force date back to 1984 and are completely out of touch with reality, while those related to maternity leave are also lagging behind neighboring regions and even mainland China, where maternity leave is currently 98 days.

Lawmakers expressing views on this issue criticized the progressive increase of one day every two years and called for a faster schedule.

On the other hand, lawmakers representing the employer sector called for more government support for local companies, given the proposed extensions to leave. They argued that the absence of workers due to maternity leave can pose a risk to company operations, particularly for small and micro enterprises, and urged the government to subsidize such absences and potentially allow the hiring of replacement workers for short periods.

Some of these lawmakers also criticized the push from others for Macau to match the policies of other regions and even the mainland, remarking that, unlike Macau, most companies in those regions are large enough to support the absence of workers for longer periods, something that local SMEs cannot easily do.

On the government side, representing the Office of the Secretary for Economy and Finance, Chief of Office Lo Chi Fai noted that, in the current review, the idea underlying the amendments was not to match neighboring regions but to “align with the existing rules that apply to civil servants in order to increase equity.”

Several lawmakers also mentioned the absence of changes regarding paternity leave, to which Lo responded by saying that this leave “was amended not long ago, so public opinion gathered during this round of consultations did not focus on this matter.”

Other lawmakers, such as Ella Lei and Wong Kit Cheng, also remarked on more specific topics, calling for special benefits for women giving birth to more than one child in a single pregnancy.

Again, Lo responded that while such benefits exist on the mainland, “there are no such benefits in force for women in Macau, either in the public or private sector,” reaffirming the principle of equity between the public and private sectors.

Addressing the mechanism for adjusting annual leave, Lo also noted that the matter garnered consensus from the majority of respondents during the public consultation, remarking that “obviously, for employees it is not enough, but for employers it is too much.” He said he believed that the mechanism ultimately adopted was “acceptable and balanced,” taking into account the current situation and the capacity of local employers to accept it.

Che Sai Wang, José Pereira Coutinho, Nick Lei, and Song Pek Kei were also among those who shared the view that the labor laws are not keeping pace with the times, calling for a faster government response and more frequent reviews.

Che also noted that annual leave entitlements are completely out of touch with reality and that most companies have long been offering much better benefits because of this mismatch. He said the same applies to the number of public holidays.

“We only have 10 days, far fewer than in Hong Kong and neighboring regions,” he said, adding, “We need to take measures to improve the work environment and attract talent to Macau.”

According to Che, the lack of work benefits in Macau and the outdated labor laws can hinder efforts to attract a highly qualified workforce and even encourage the return of residents currently studying or working abroad, where labor rights are much more favorable.

Several lawmakers also noted that the rules governing government subsidies to companies for additional work absences are very restrictive and do not apply to many businesses.

Responding with figures, the government noted that the subsidy covered about 240 cases per year and amounted to approximately MOP4 million last year.

In the end, despite unanimous support from lawmakers, the divergence of opinions remained clear and may carry over into the detailed discussions to be held behind closed doors at the AL Standing Committee.

According to the bill’s details, the government expects the new amendments to be approved and to take effect on Jan. 1 next year.