New labour relations law increasing maternity leave enforced on Tuesday

The newly approved Labour Relations Law was today (Monday) published at the Official Gazette and will start being enforced tomorrow.

The new legislation will implement several changes to workers rights, with the most impactful being an increase in the current maternity leave from 56 to 70-days – the first increase in 10 years – plus a five-day paternity leave.

In the first three years after the entry into force of the new law, the employer must pay remuneration on maternity leave of not less than 56 days to resident workers who give birth within and whose employment relationship is more than one year on the day of birth of the child, with the Macau SAR Government supporting the remaining 14 days.

The provided paid maternity leave is still under the 90 days of paid maternity leave for public employees and the 98 days recommended by the International Labor Organization.

During the bill debate at the Legislative Assembly (AL) this month, Secretary for Economy and Finance Lei Wai Nong stated that the 70 days was the balance found to satisfy both employees and employers, and considered that a future increase to 90 days would be possible.

Non-resident workers are also entitled to 70-day maternity leave, but the expenses are the sole responsibility of the companies, something that was also greatly contested by employee representatives in the AL.

The new law also includes changes to workers holidays, such as when the weekly rest day overlaps with the mandatory holiday day, that overlapping rest day will be considered a mandatory holiday day, and the employer must determine when that rest day must be enjoyed within 30 days.

The period of compensation for work on mandatory public holidays is also extended to three months and workers can choose two rest days as compensation work on a weekly rest day or on a mandatory holiday.

The maximum amount of basic monthly remuneration for calculating severance pay was also increased from MOP20,000 to MOP21,000.