Recently, several food delivery platforms in Mainland China announced that they would pay social security contributions for their drivers. This represents a positive step forward for the new employment model in the labor market.
Observing the growth of the informal economy and platform-based economy in Macau, many workers—such as delivery couriers, taxi drivers, and tour bus drivers—have established relationships with their employers based on “service contracts.”
These agreements do not oblige employers to provide labor insurance. As a result, in the event of a workplace accident, workers are not protected and must bear the risks and costs associated with their work, including health issues and workplace accidents.
The decision to use “service contracts” naturally lies with the involved parties. However, I have received feedback from some workers who say that, although certain platforms use this cooperation model, the working hours and the forms of service provision do not differ in practice from a formal employment relationship, revealing an implicitly subordinate nature.
Given that Macau is a microeconomy with a limited market, many individuals have no alternative but to work under these conditions. It is therefore necessary to be vigilant about the possibility of some employers using this model to evade the responsibilities and obligations they should assume within a common employment relationship.
The current Labor Relations Law considers any employment relationship involving “subordination” as a labor relationship, and there have already been relevant judicial decisions in this regard.
It is recommended that the Government, considering changes and developments in new industries, study ways to protect these workers, establish clear guidelines, enhance dissemination and guidance, and encourage employers to provide insurance to workers under employment contracts. This will help prevent violations of legal standards and improve labor protection in Macau.
Moreover, new employment models are developing dynamically, and the demand for these new forms of work, as well as the associated labor rights and interests, has also evolved.
As I previously mentioned, the 14th National Five-Year Plan for Employment Promotion emphasizes the need to “accelerate the implementation of the ‘Guiding Opinions on Safeguarding the Rights and Interests of Workers in New Employment Forms,’ with the aim of establishing and improving labor rights and interests for these workers and clarifying the labor protection responsibilities of platform companies.”
Since Macau is actively promoting economic diversification, and new forms of employment differ from traditional labor relations, there is a risk of employers shirking their responsibilities. It is therefore recommended that, in response to the new work model, statistics be compiled on the number and types of self-employed and freelance workers to understand relevant data.
Timely studies should also be conducted to optimize labor relations standards and the protection of rights and interests under the Labor Relations Law and related legislation, as well as to improve social security, support measures, laws, and regulations.
