Unpaid leave at DFS sparks debate on labor rights

Local labor officials say they have received no complaints so far about a major duty-free retailer, DFS, requiring employees to take unpaid leave this summer. However, the move has reignited debate about protecting workers’ rights.

The director of the Labour Affairs Bureau, Wong Chi Hong, said in an interview that unpaid leave can only be implemented by agreement between employees and management. He emphasized that, if a company wanted to lay off workers due to lack of business, it must fire foreign employees before locals and provide compensation to any local workers who are let go.

Wong said he has met with companies mentioned in media reports as having unpaid leave policies to remind them to temporarily use local hiring to offset foreign worker shortages. He called on employees who feel their rights have been violated to file complaints with authorities.

If investigations confirm employment of foreign workers is hurting locals, quotas for foreign hires can be eliminated, Wong said. Some press attention has focused on how authorities are prioritizing jobs for residents, like airport security roles.

Wong said investigations found locals can fill security jobs after training and certification. He hopes the public understands that many positions require skills or credentials. Authorities will organize training to boost qualifications, he added.

Wong also noted his office runs three job-matching sessions weekly with labor unions. From January through May, over 54 such meetings led to more than 6,000 successful local hires, a “very good result,” he said.

However, Wong mentioned that attendance at over half the matchmaking events has been low. He called on the public to have a competitive spirit and make the most of opportunities to find employment.

Earlier this week, it was reported that DFS Group is offering its Macau employees access to an unpaid leave program this summer in an effort to reduce costs as economic uncertainties persist.

According to a confirmation from DFS, the program is “voluntary” and a “result of meticulous consideration of different schemes,” which allows full-time employees to take six unpaid days off between July and August.

The retailer, which operates duty-free shops worldwide, cited global uncertainties as contributing to the decision.

Government statistics show retail sales in Macau fell 12.5% in the first quarter from a year ago, primarily due to pent-up demand in 2021 as the pandemic began to slow. The anonymous DFS worker noted, “Most customers I had served appeared less willing to spend than before the Covid pandemic.” They added, “It is not just us – some other luxury brands are also facing cost-conscious shoppers.” Victoria Chan