TSI clarifies TNR who become residents only entitled to compensation from the period they become residents

The Court of Second Instance (TSI) has partially amended a claim from an employer in a court case involving the payment of compensation for job dismissal.

The TSI judges partially amended a previous ruling from the Court of First Instance (TJB), clarifying that a non-resident worker (TNR) who becomes a resident worker while working from the same company is only entitled to count the time for dismissal compensation from the time he acquired the status of resident, with the previous working time for this purpose being ruled out, a statement from the Office of the president of the Court of Final Appeal noted.

Initially, the TJB had calculated the full duration of work contracts between the worker and the employer without taking into account that for the first few years, the worker was under a TNR working contract.

TSI noted that all TNR work contracts are, by nature, fixed-term employment contracts that expire at the end of this period and, although the law provides compensation in the case of non fulfilment of these contracts, these are limited to each contract period.

In the particular case addressed, a worker signed a contract with the employer in September 2007 as a TNR, a contract that was later (in August 2010) amended as the worker acquired resident status.

The contract was eventually terminated without just cause by the employer in July 2020, giving rise to a dispute that reached the courts.

The worker was claiming compensation of MOP643,864.28, claiming the dismissal compensation as well as compensation for work conducted overtime, work performed during mandatory rest days, and public holidays, which both courts were satisfied he could prove.

The TSI noted that while TNRs are also protected by labor laws and are also entitled to compensation for termination without just case, in this case, the worker was not dismissed, as he continued to work for the same employer but under different terms after becoming a resident. Since he did not lose his job, the TSI clarified that he is not entitled to request any compensation in relation to the previous period.

Still, the TJB ruled the employer must pay compensation of MOP96,562.67, a ruling that the TSI partially amended because of the portion of time that he was on a TNR contract.

Finally, the TSI made an order for compensation amounting to MOP83,067.00 due to the worker, an amount that had been calculated and already paid as compensation to the worker by the employer, dismissing the other claims.