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Labour contract | Holidays | Rescission of contract | Getting to know more about the hiring of minor employees | Checklist of hiring a non-resident employee legally | Others | Notification of work-related accidents and occupational diseases | Labour legislation enquiry hotline

Labour contract


 What are the types of a labour contract?

A labour contract can be of two types: indefinite contract and term contract.  Term contract may have a fixed term or a variable term.
 
An indefinite contract does not specify any employment period; in other words, it is a permanent employment.
 
A term contract sets an employment period or a period required to complete the object of the contract.  For example, if the duration of a contract is set for a specific length, such as one year, the contract is a fixed term contract; if a contract ends after the task is completed, it is a variable term contract.  (Only under the circumstances prescribed by law could the employer conclude a term contract with a resident employee.)
 
*For samples of labour contract, please see Labour Relations Law – Samples of Written Documents.

 If a contract is renewed annually, is it a term contract?

A term contract, in addition to meet the legal requirements of term contract, must be concluded in writing with the grounds justifying the term agreed upon by an employer and an employee.  Moreover, it shall only be entered into to satisfy temporary needs of an enterprise, for instance, starting a new task for an uncertain period, undertaking construction works or public works, performing seasonal work or replacing an absent employee.
 
If a contract does not fulfil the legal requirements for term contract, even though it is renewed each year with a fixed period, it is still considered as indefinite contract instead of term contract.
 
A fixed-term contract which satisfies the requirements for conclusion cannot be renewed more than twice and shall not exceed 2 years, including renewals, otherwise, it will be converted into an indefinite contract.

 What are the differences between indefinite contract and term contract?

There are two main differences: 1) an indefinite contract may be made in oral or written form, whereas a term contract must be concluded in writing and its conclusion must meet the legal requirements; 2) for an indefinite contract, unless there are valid grounds, if an employee is dismissed by his employer, the employee shall be entitled to compensation calculated according to his length of service; however, for a term contract, since an agreed period or a period needed for an agreed task is specified in the contract, when the contract is terminated due to its expiry or completion of the agreed task, the contract becomes invalid, thus no compensation is required.
 
Regarding the probationary period, for general workers, the probationary period is 30 days for a term contract and 90 days for an indefinite contract.
 
However, during the labour relation, whether an indefinite contract or a term contract is concluded, an employer and an employee are entitled to the same rights and obligations under the Labour Relations Law including working time, weekly rest days, mandatory holidays, annual leave, justified absences, maternity leave, paternity leave, form of payment of remuneration, pay slip, employment record, etc.

 What contracts must be concluded in writing?
  • Fixed term labour contract (including renewal);
  • Variable term labour contract;
  • Labour contract concluded with a non-resident worker;
  • Labour contract concluded with a minor worker.
A written labour contract must contain: identification and signatures of the employer and the employee, working conditions, the date when the contract is entered into, the date when the contract comes into force, and other requirements stipulated by law.  Each party shall have a copy of the written labour contract.
 
If it is a term contract (including fixed term contract or variable term contract), the grounds justifying the term agreed upon by the employer and the employee must also be stated.
 

Holidays


 There are 10 mandatory holidays in Macao:
  • New Year's Day (January 1)
  • Lunar New Year (the first, second and third day of the first month of the Lunar Year)
  • Cheng Ming Festival
  • Labour Day (May 1)
  • The day after the Mid-Autumn Festival (Chong Chao Festival)
  • National Day of the People's Republic of China (October 1)
  • Chong Yeong Festival
  • Macao Special Administrative Region Establishment Day (December 20)
 What are the rules when a mandatory holiday falls on a weekly rest day?

In the case where a mandatory holiday falls on a weekly rest day, the current law stipulates that the overlapping holiday shall be handled in accordance with the mandatory holiday; the employer is required to arrange for the employee to take the overlapping weekly rest within the following thirty days.

In a situation where employees take a day off in the above circumstances, if they are paid monthly, they shall not be entitled to additional remuneration since their monthly remuneration includes the remuneration for weekly rest days and mandatory holidays; if they are paid daily, hourly, or by piece, they shall be entitled to the additional remuneration for that day since their remuneration only includes the remuneration for weekly rest days; if they receive a remuneration comprising the above types of remuneration at the same time, no additional remuneration is required for the part of monthly remuneration, but the additional remuneration for the part of daily remuneration, hourly remuneration, or remuneration by piece shall be calculated according to subparagraphs 2) and 3) of paragraph 1 of Article 61 of the Labour Relations Law.
 
If employees provide work in the above circumstances, employers are required to compensate the employees with the compensation for providing work on mandatory holidays and are also required to arrange for the employees to take the overlapping weekly rest within the following thirty days.

 Does the work remuneration include the remuneration for weekly rest days, mandatory holidays, annual leave and absence due to sickness or accidents?

For employees who are paid monthly, their monthly remuneration includes the remuneration for weekly rest days, mandatory holidays, annual leave and absence due to sickness or accidents (6 days per calendar year), so employers are not required to pay additional remuneration to such employees.
 
For employees who receive daily remuneration, hourly remuneration, remuneration by piece, or commissions, their remuneration only includes the remuneration for weekly rest days, but not include the remuneration for mandatory holidays, annual leave and absence due to sickness or accidents (6 days per calendar year); the employer is obliged to pay the employee the remuneration corresponding to the number of days.
       
For employees who receive the remuneration comprising the above types of remuneration at the same time, the remuneration of mandatory holidays, annual leave and absence due to sickness or accidents shall be calculated separately.  In other words, no additional remuneration is required for the part of monthly remuneration, but the additional remuneration for the part of daily remuneration, hourly remuneration, remuneration by piece, or commissions shall be calculated according to subparagraphs 2) and 3) of paragraph 1 of Article 61 of the Labour Relations Law.

Rescission of contract


 Can an employer and an employee agree on previous notice for terminating a labour contract?
 
During the probationary period, an employer and an employee can have a written agreement on previous notice; however, it is invalid if it is made in verbal form. Please be reminded that the length of previous notice agreed upon by both parties shall not exceed the length of the statutory period (i.e. 15 days in case of termination on initiative of an employer and 7 days in case of termination on initiative of an employee).
 
After the probationary period, an employer and an employee can agree about the same or different length of previous notice; however, please note that the length of previous notice suggested by the employee shall not exceed that suggested by the employer.
 
For example: if an employer and an employee agree on 30 days as previous notice in case of termination on initiative of the employee and 20 days on initiative of the employer, then such agreement is invalid due to breach of the law; if the labour contract is terminated, the employer must give 15 days of previous notice as stipulated in the law whereas the employee must give 7 days of previous notice.
 
In the absence of contractual provisions on the length of previous notice, the length of previous notice required to terminate a labour contract shall be: 15 days in case of termination on initiative of an employer and 7 days on initiative of an employee.

 Can an employer or an employee terminate a labour contract with just cause?

When any fact or serious circumstance makes it impossible to continue a labour relation, either an employer or an employee can terminate the labour contract with just cause based on that.
 
When terminating the labour contract with just cause, neither the employer nor the employee is obliged to comply with the statutory or agreed previous notice. In case of termination with just cause on initiative of the employer, the employee has no right to compensation; however, in case of termination with just cause on the employee's initiative, the employer is obliged to compensate the employee.
 
Although no previous notice is required, the party who takes initiative to terminate a labour contract must give the other party written notice of the decision of termination with just cause within 30 days after knowledge of the relevant fact, summarily describing the facts that led the party to think it is impossible to continue the labour relation. If written notice is not given or not given within 30 days, the ground put forward by the party may be considered unreasonable.
 
If written notice is not given or not given within 30 days, or the ground put forward by the party is considered inadequate after investigation, the following legal consequences will arise: if an employer dismisses an employee, the employee shall be entitled to compensation equivalent to twice the amount of statutory compensation; if an employee terminates a labour contract, the employee is demanded to reimburse the employer an amount equal to the number of days lacking in the previous notice.
 
*For samples of notice of rescission of contract with just cause, please see Labour Relations Law – Samples of Written Documents.

 Can a female employee be dismissed during pregnancy or within 3 months after confinement?

An employer is prohibited from dismissing a female employee during pregnancy or within 3 months after confinement without just cause; otherwise the employer shall be liable to pay the fired female employee a compensation corresponding to 56 days of basic remuneration, without prejudice to any other compensation owed to her, such as dismissal compensation.
 
A female employee shall be entitled to a compensation corresponding to 56 days of basic remuneration only after having given her employer notice of her pregnancy or confinement.

 Can an employer dismiss an employee who is absent due to work-related accident?

An employer is prohibited from dismissing an employee who is absent due to work-related accident, except with just cause; otherwise the employer shall be liable to pay the fired employee a compensation equivalent to 3 months of basic remuneration and that compensation must not be lower than MOP$10,000.00. Meanwhile, the employer is also required to pay other compensations owed to the fired employee, such as dismissal compensation.

Getting to know more about the hiring of minor employees


 Minor employees, before employment begins, must meet the following requirements:
  • Having attained the minimum age of work (16 years of age); having attained 14 years of age for summer job;
  • Having a medical certificate (to prove that he/she is able to perform suitable work);
  • Having the parents' consent (to prove the parents allow the minor to perform work);
  • Prior to the commencement of the labour relations, the employer and the minor must conclude a written contract and each party shall have a copy of the contract.  If the minor is over 16 years of age, he/she can sign the contract; however, if the minor is under 16 years of age, his/her parents or guardian must sign the contract on behalf of the minor.
  • The parents' consent must be made in writing, containing the name of the minor and of his/her parents, specific description of the work to be provided by the minor, name of the company where the minor is going to work, parents' signatures, and date of the written consent.
  • For hiring minors for summer job, although it is not required to inform the Labour Affairs Bureau, written contract, medical certificate, parents' consent and assessment of job nature (if any) must be made.  Minors over 14 years old can do summer jobs during school summer holidays without prior application to the Bureau.
 Notification of employment of minors:
  • Employment of minors under 18 years of age (but no notification is required for hiring minors aged 14 to 18 for summer job).
  • Result of annual medical examination for a minor employee (but no notification is required if the medical examination is conducted in the Labour Affairs Bureau).
  • When hiring a minor, the employer must notify the Labour Affairs Bureau in writing within 15 days from the date when the labour contract is entered into.  Moreover, the employer must inform the Labour Affairs Bureau about the result of a minor employee's medical examination within 15 days after completing one year of employment.
  • The following documents are required to be submitted for the notification of the hiring of a minor employee: copy of the labour contract, copy of medical certificate and identification of the minor, copy of the consent of the minor's parents, and assessment of job nature (if it is on the list of occupations with restricted conditions for minors).

Checklist of hiring a non-resident employee legally


An employer must comply with the provisions of the Labour Relations Law and the Law for the Employment of Non-resident Workers when hiring a non-resident worker.
 
 Work arrangement:
  • After the employer has been granted the employment permit and has applied for the “Authorization to Stay for Non-resident Workers” at the Public Security Police Force, the labour relations between the employer and the employee are established and the non-resident employee can work legally in Macao.
  • The employer can only arrange for the non-resident employee to work according to the position stated in the “Non-resident Worker's Identification Card.”  Besides, the non-resident employee can only work for the employer stated in the “Non-resident Worker's Identification Card.”
 The written contract entered into with a non-resident employee:

The employer must conclude a contract with the employee in writing and give the employee a copy of the written contract.
 
 Content of written contract:

The contract must contain: identification of both parties, domicile or head office of the parties, profession or duties to be carried out by the worker, remuneration, place of work, working schedule and normal working hours, the date when the contract comes into force, and the date when the contract is entered into.
 
 Special rights of a non-resident employee:
  • The related rights, obligations and guarantees can also be referred to the Labour Relations Law.
  • Free lodgings or a monthly housing allowance of MOP$500.00 at least
  • The non-resident employee shall be given the cost of transportation to his/her place of habitual residence upon cessation of the labour relations, under any circumstances.
To clear about the payment of the cost of transportation, the address of the employee's place of habitual residence should be explicitly stated.
 
 Form of payment of the non-resident employee's remuneration:
  • The remuneration must be carried out through a deposit to a current account owned by the non-resident employee at a banking institution in Macao.
  • The employee must be given a pay slip at each payment of remuneration, which should contain the items of remuneration or compensation.
  • The employer should keep the bank transfer records and the pay slips and must keep an updated record of the employee's information.
 The term of a non-resident employee's contract:
  • The contract entered into with a non-resident employee shall be subject to a definite term.  The term of the contract is consistent with the period of the non-resident employee's employment permit in principle.
  • The probationary period is 30 days in general and cannot be extended.  There would be no probationary period in the case of the renewal of the same employee's contract.
  • When the term of the contract expires, the contract can be renewed with the mutual consent of the employer and the employee.  If the contract is not going to be renewed, it will expire at the end of its term; in such case, neither party needs to serve a previous notice nor needs to pay the compensation for that.
  • If the employer dismisses the employee without just cause before the expiry of the contract's term, the employer is obliged to pay the employee a compensation calculated according to the period between the date of rescission and the expiry date of the contract, equivalent to 3 days of the basic remuneration for each month.
 Punishment for violation of law:

A maximum fine of MOP$20,000.00 shall be imposed on the employer for each administrative offence committed.
 
 Hotlines for reporting illegal work:

Public Security Police Force: 2857 3333
Labour Affairs Bureau: 2833 8808       Fax: 2855 0477
Customs Service: 2855 9944

Others


 An agreement must be concluded in writing when:
  • A probationary period may be eliminated or different limits may be provided for its duration;
  • An employer and an employee agree on previous notice for terminating a labour contract during the probationary period;
  • An employee is exempted from working time schedule;
  • An employee's wage is reduced;
  • An employer transfers an employee to another employer; and
  • A labour relation is terminated by mutual agreement between an employer and an employee.
 A mutual agreement must be obtained when:
  • The working time stipulated in the labour contract is changed;
  • An employee voluntarily performs overtime work at his/her initiative;
  • An employee voluntarily requests to work on a weekly rest day;
  • A compensatory rest day is replaced by one day of basic remuneration as compensation for working on a mandatory holiday;
  • Annual leave is accumulated for up to two years.
Regarding the above matters, the written mutual agreement between an employer and an employee must contain identification and signatures of both parties, date when the agreement is entered into and date when the agreement comes into force. Each party shall hold a copy of the agreement.
*For samples of agreement, please see Labour Relations Law – Samples of Written Documents.

 The employer's obligations of record-keeping and issuing certificates:
  • An employer is obliged to keep a record of each employee's data in books, data cards or information system for the duration of the labour relation and up to 3 years after its termination;
  • An employer is obliged to issue a certificate of service when requested by the employee during the labour relation;
  • An employer is obliged to ensure that each employee is informed of the regulations of the enterprise and has access to a copy of such regulations;
  • An employer is obliged to give each employee a pay slip containing detailed items of remuneration and deductions for each payment of remuneration;
  • An employer is obliged to issue a certificate of employment when requested by the employee upon the termination of the labour relation (when the employee is dismissed by the employer, the employee may request a certificate of employment stating the fact of dismissal).
*For samples of employment record, certificate of service, pay slip and certificate of employment, please see Labour Relations Law – Samples of Written Documents.

 What cases must be notified to the Labour Affairs Bureau?
  • Work-related accidents or occupational diseases;
  • Employment of minors;
  • Wage cut.

Notification of work-related accidents and occupational diseases


When a work-related accident occurred, the related employee or his/her family members must inform the employer or the employer's representatives within 24 hours after the accident occurred, unless the employer or his/her representatives witnessed the accident or had knowledge of the accident.
 
Regardless of whether the injury is serious or not, the employer or his/her representatives must inform the Labour Affairs Bureau:
  • In the event that the victim passed away or was admitted to hospital, notification shall be made within 24 hours after the accident occurred or the employer was notified about the accident.
  • Regarding other work-related accident cases, notifications shall be made within 5 working days after the accidents occurred or the employers were notified about the accidents.
  • The employer or his/her representatives must inform the Labour Affairs Bureau within 24 hours after being notified about the employee's occupational disease.
Notification ways
  1. By fax: 2871 7771
  2. On-line reporting: https://www3.dsal.gov.mo/InjuryOnline?lang=en
  3. By e-mail: o.injury@dsal.gov.mo
  4. Submission of work accident notification form:
    • Labour Affairs Bureau Head Office
    • Vocational Training Centre of the Labour Affairs Bureau
    • Long Cheng Service Centre of Labour Affairs Bureau
    • Northern District Public Services Centre
    • Submit the form to the counters of the following departments:*
      • Financial Services Bureau
      • Economic and Technological Development Bureau
      • Macao Trade and Investment Promotion Institute
*The Labour Affairs Bureau, within 2 working days counted from the submission date of the form, will notify the employer via SMS, e-mail or phone call about receiving the form.

*The report of work-related accident must include the following details: company's information (name, person in charge, address, contact number), employee's information (name, identity card number, contact number, job position), time and location of the accident, injury condition, brief description of the accident, signatures and company's stamp.

Labour legislation enquiry hotline


For enquiries, please call the labour legistation enquiry hotline 2871 7810.
©2016 Government of the Macao Special Administrative Region - Labour Affairs Bureau
Address: Avenida do Dr. Francisco Vieira Machado 221-279, Edifício Advance Plaza, Macau
Telephone: (853) 2856 4109    Fax: (853) 2855 0477    E-mail: dsalinfo@dsal.gov.mo
 

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