Termination in Macau

Types of Termination

Employment contracts in Macau can be ended in several ways:

• By mutual agreement – Employer and employee may agree in writing to end the contract.
• Expiry of fixed-term contract – Employment ends when the agreed period expires.
• By employee (resignation) – Employee may resign with proper notice or with just cause.
• By employer – Employer may terminate with just cause, or without just cause (with notice and severance).

Notice Periods

Notice requirements depend on the employee’s length of service:

• Probation period → 7 days (minimum)
• < 1 year of service → 15 days
• ≥ 1 year of service → 30 days

Notice must be given in writing. Payment in lieu of notice is also permitted.

Termination with Just Cause

Both employers and employees may terminate immediately if there is just cause. Examples include:

• For employer – Serious misconduct, repeated disobedience, dishonesty, or violence by the employee.
• For employee – Non-payment of wages, dangerous working conditions, or serious breach of contract by the employer.

In such cases, no notice or severance is required.

Severance Pay

If an employer terminates without just cause, severance pay is owed:

• 7 days of wages per year of service (capped at 20 years).
  • After probation –
    • 1 year –> 7 days
    • 1-3 years -> 10 days per year
    • 3-5 years -> 13 days per year
    • Over 10 years -> 20 days per year

*With capped 12 times of latest monthly wages.

• Employees with less than 1 year of service receive pro-rata entitlement.

Special Protection Against Termination

Certain employees enjoy additional protection from dismissal:

• Pregnant employees and employees on maternity leave.
• Employees on sick leave (up to the statutory limit).
• Employee representatives (e.g., union delegates).

Termination in these circumstances is restricted and may require prior approval from the Labour Affairs Bureau (DSAL).

Compliance Considerations

Employers should:

• Provide notice in writing and pay all outstanding wages, leave entitlements, and severance upon termination.
• Keep records of termination reasons, notices, and payments.
• Avoid discriminatory or age-based dismissals.

Non-compliance may result in fines, reinstatement orders, or compensation awards.

Please note that all the information listed below are to be used as a general guideline. For more detailed accounts of Macau employment laws and regulations, please visit the official governmental websites.

Updated on: September 2025