[Macau] Employee salaries must be paid in cash

The Macau Labour Affairs Bureau (DSAL) has said that, according to the law, no enterprise is permitted to use “shares” as a substitute for a cash payroll, Inside Asian Gaming reports.

The announcement follows reporting in Macau media that Wynn Macau planned to replace 10 per cent of salary with stocks for some middle and senior management employees.

Macau is a special administrative region of China, which maintains separate governing and economic systems from those of mainland China.

Macau Legislative Assembly member Lam U Tou asked DSAL about the legality of the Wynn Macau plan. On June 7, DSAL replied in writing that the Labor Relations Law stipulates that enterprises cannot pay employee salaries in the form of shares.

Article 63 of the Labour Relations Law reportedly stipulates that remuneration is paid in Macau legal tender.

“The compensation paid by the employer to the employee must be paid in money and must be paid in Macau’s legal tender (MOP),” DSAL outlined in its reply letter.

DSAL said that it would, however, be acceptable for an employee and employer to agree to pay some or all of a salary in a non-monetary way, despite it failing to comply with Article 63 of the Labor Relations Law. The non-monetary component must be of equivalent value to the cash salary foregone.

In addition, DSAL said that if an employee’s salary is reduced without his or her consent, he or she can seek help from DSAL.

Wynn Macau subsequently responded to DSAL’s comments by confirming that 90 per cent of the company’s management had agreed to a reduction in salary on the basis that they would be offered shares of equal value to the salary reduction instead.

Source: Inside Asian Gaming

(Link and quote via original reporting)

The Macau Labour Affairs Bureau (DSAL) has said that, according to the law, no enterprise is permitted to use “shares” as a substitute for a cash payroll, Inside Asian Gaming reports.

The announcement follows reporting in Macau media that Wynn Macau planned to replace 10 per cent of salary with stocks for some middle and senior management employees.

Macau is a special administrative region of China, which maintains separate governing and economic systems from those of mainland China.

Macau Legislative Assembly member Lam U Tou asked DSAL about the legality of the Wynn Macau plan. On June 7, DSAL replied in writing that the Labor Relations Law stipulates that enterprises cannot pay employee salaries in the form of shares.

Article 63 of the Labour Relations Law reportedly stipulates that remuneration is paid in Macau legal tender.

“The compensation paid by the employer to the employee must be paid in money and must be paid in Macau’s legal tender (MOP),” DSAL outlined in its reply letter.

DSAL said that it would, however, be acceptable for an employee and employer to agree to pay some or all of a salary in a non-monetary way, despite it failing to comply with Article 63 of the Labor Relations Law. The non-monetary component must be of equivalent value to the cash salary foregone.

In addition, DSAL said that if an employee’s salary is reduced without his or her consent, he or she can seek help from DSAL.

Wynn Macau subsequently responded to DSAL’s comments by confirming that 90 per cent of the company’s management had agreed to a reduction in salary on the basis that they would be offered shares of equal value to the salary reduction instead.

Source: Inside Asian Gaming

(Link and quote via original reporting)