Q1. Which labour claims are guaranteed by the Fund?
● After the termination of the labour relation and when the employer goes bankrupt, the worker can apply to the Fund for the payment of the following labour claims:
1. Basic remuneration and indemnities or compensations of six months prior to the termination of the labour relation;
2. Compensations resulting from work accidents or occupational diseases when no labour insurance is purchased;
3. Dismissal compensation that the non-resident worker is entitled to due to the revocation of the employer's employment permit;
4. Non-resident worker's accommodation allowance of six months prior to the termination of the labour relation;
5. Non-resident worker's transportation cost to home country.
● The worker, regardless the labour relation has terminated or not, is guaranteed the payment of compensations resulting from work accidents or occupational diseases when the employer purchased labour insurance but the insurance entity fails to fulfil the obligation due to bankruptcy.
● The family members of workers who died due to work accidents or occupational diseases are guaranteed the payment of the corresponding compensations when the employer did not purchase labour insurance and failed to pay the compensation, or when the employer purchased labour insurance but the insurance entity failed to fulfil the obligation due to bankruptcy.
Q2. How does the Fund handle the applications for the payment of labour claims arising from situations occurred more than six months before the termination of the labour relation? How can the applicant be assured to receive the payment of those labour claims?
The law only stipulates the payment of labour claims (including worker's basic remuneration, indemnities or compensations, as well as non-resident worker's accommodation allowance) arising in the six months prior to the termination of the labour relation, hence the Fund cannot pay the labour claims existing before that period. However, the worker can claim those amounts from the debtor through civil proceedings.
Q3. Can the worker apply to the Fund for the payment of labour claims before the termination of the labour relation?
In general, the worker can apply to the Fund for the payment of labour claims only after the termination of the labour relation and when the employer was unable to pay the labour claims. However, if the employer purchased labour insurance, but the insurance entity cannot fulfil its obligations due to bankruptcy, then regardless the labour relation has terminated or not, the worker can apply to the Fund for the payment of the compensations resulting from work accidents or occupational diseases.
Q4. How does the Fund handle applications for the payment of labour claims arising from situations occurred before 1 January 2016 (date of entry into force of Law No. 10/2015 "Labour Creditor's Rights Protection System") and continuing beyond that date?
The applications and payment of labour claims arising from situations existing before 1 January 2016 will follow the provisions of Decree-law No. 58/93/M "Social Security System".
The applications and payment of labour claims arising from situations on or after 1 January 2016 will follow the provisions of Law No. 10/2015 "Labour Creditor's Rights Protection System".
Q5. What is advance payment?
Considering the time required to recover the debts through judicial proceedings, and in order to provide assistance to workers as well as family members of workers who died due to work accidents or occupational diseases to meet their pressing needs, this law establishes a mechanism for advance payment, allowing the applicant who does not have the court decision, to apply to the Fund within the statutory period, for an advance payment that cannot exceed half of the amount of labour claims guaranteed.
Q6. Does the advance payment application have a deadline for submission?
For basic remuneration, indemnities or compensations as well as non-resident worker's accommodation allowance and transportation cost to return to home country, the worker must submit the application to the Fund within 45 days from the termination of the labour relation.
For compensation due to work accidents or occupational diseases, when no labour insurance is purchased, the worker must submit the application to the Fund within 45 days from the termination of the labour relation.
When the employer purchased labour insurance but the insurance entity does not fulfil the obligation due to bankruptcy, the worker or the family members of the worker who died due to work accidents or occupational diseases must submit the application to the Fund during the bankruptcy proceedings of the insurance entity.
Q7. How long does the decision on the advance payment application take?
According to the law, after receiving the application for advance payment, the Fund will send it to the Labour Affair Bureau that shall express an opinion within 60 days (for complex cases this period may be extended by 60 days). After receiving the Bureau's opinion, the Fund shall decide on the application within 30 days.
Q8. How can a non-resident worker who needs to leave Macao apply to the Fund for the payment of labour claims and receive the money?
The non-resident worker who needs to leave Macao can, through a certified power of attorney, authorize a third party to submit the application to the Fund and to handle the payment procedures, being aware that the power of attorney should clearly state the situations of collecting payments.
Q9. In which situations is the applicant obliged to reimburse to the Fund the amounts received?
The applicant after getting the payment of the labour claims, in whole or in part, from the debtor (employer or insurance entity) must reimburse to the Fund the difference between the total amount received from the Fund and the debtor and the amount that the applicant is entitled to.
The applicant must reimburse to the Fund when the amount received is higher than that he/she is entitled to, particularly when the court rules the claim as non-existent.
Q10. In the situations referred in the previous question, when must the applicant reimburse to the Fund?
The applicant must reimburse to the Fund within 45 days from the first of the following occurrences:
1. Settlement of claims by the debtor;
2. Issue of court decision;
3. Issue of reimbursement notice by the Fund.
Q11. If the applicant fails to reimburse to the Fund within the statutory period mentioned in the previous question, what will be the consequences?
The Fund will send the relevant information to the Financial Services Bureau for compulsory collection. In addition, the non-reimbursement within the time limit is an administrative offence and the applicant shall pay a fine equal to 25% of the amount to be reimbursed.
