The Legislative Assembly unanimously passed the outline of a revised labour relations law yesterday, which proposes raising the maximum monthly limit for calculating severance pay from 21,000 patacas to 21,500 patacas.
The bill has yet to officially become law, as it is still required to go through a review by the Legislative Assembly’s standing committees, as well as another round of checks and voting.
If passed, the law would mean that employees are entitled to a maximum of 258,000 patacas – 12 months’ pay – in severance compensation rather than the current 252,000 patacas.
According to multiple media reports, the legislation was brought to the floor yesterday by Lei Wai Nong, the secretary for economy and finance, who noted that the current adjustment to the dismissal compensation rate stemmed from a review that took place between April 2021 and April last year. The next review period ends in April 2025.
[See more: New labour relations bill targets maternity leave and dismissals]
During the session, a number of lawmakers voiced their dissatisfaction with the current proposal, which they deemed insufficient.
Legislator Ella Lei called for an improvement in the legislative mechanism for revising the rates for dismissal compensation, minimum wages and work accident payments. She noted that in some cases, the reviews and amendments stretched beyond the stipulated two-year period, which resulted in a response lag.
The lawmaker also mentioned that the two-year evaluation period resulted in very little change, as the authorities chose to only make meaningful adjustments after a span of four or more years.
In response to the criticisms, Lei said the authorities would strive to reduce the amount of time needed for the reviews, although he noted that the collection of data during the review needed to take into account the state of the economy, the protection of workers and a balanced business environment for employers.
