No agreement on unfair dismissal maximum compensation

2014/6/17

From：Macau Daily Times

Employers and employees have not yet reached a consensus on the maximum compensation set for unfair dismissal. The Standing Committee for Coordination of Social Affairs held a meeting yesterday to hear all parties, as the government is planning to revise the Labor Relations Law when it comes to unfair dismissals.
The employers’ sector, represented in the meeting by Dominic Sio, has suggested an increase of the monthly salary ceiling from MOP14,000 to MOP17,000. Compensation in cases where the employee has been dismissed unjustly is calculated by multiplying a monthly salary by 12, with a ceiling of MOP14,000 currently being imposed – even if the employee earns more than that.
The workers’ sector, represented by Mr Chiang Chong Sek from the Federation of Trade Unions, said that the government should not set a maximum limit for the compensation.
“It’s not fair for the employee because he cannot say no, he cannot refuse. It seems that an employer – if it wants – can dismiss an employee without any reason,” he stated.
Furthermore, he said that even if employees work for more than 18 years, “they can only receive a 12-times-salary compensation.” “We don’t believe that this is fair for an employee who has always worked in favor of the company,” he stressed, speaking to reporters on the sidelines of yesterday’s meeting.
Dominic Sio explained the employers’ perspective: they believe that the monthly salary cap could be increased from MOP14,000 to MOP17,000, taking into account the capacities of Small and Medium-sized Enterprises.
He also said that the employers’ sector is hoping that the government does not change the current 12-times-salary that has been imposed as a limit.
Furthermore, they urged the government to take the economic situation of Macau into account when revising the maximum compensation limit.  “We think that the government should only make a revision of this compensation according to Macau’s economic situation (…) We have consulted several employers’ representatives to comment on this matter,” he said.
For now the government has not gone beyond hearing the opinions of both parties, explained Mr Wong Chi Hong, director of the Labor Affairs Bureau (DSAL). In the next committee’s meeting, they will provide their own views whilst presenting the bill.
“It is normal that [both parties] hold different ideas. We will ponder the opinions of all parties (…) to have balance: the government will need to reach a decision satisfying all parties,” he concluded.

Copyright@Macau Daily Times