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Protection of Wages Convention, 1949 (No. 95) - Portugal (RATIFICATION: 1983)

Article 4 of the Convention. Partial payment of wages in kind. The Committee notes the adoption of the new Labour Code, Act No. 7/2009 of 12 February 2009 and its implementing Regulations, Act No. 105/2009. Further to its previous comment, concerning the absence of an express prohibition of the partial payment of wages in the form of liquors and noxious drugs, the Committee notes the Government’s indication that section 259(1) of the new Labour Code provides that any benefits in kind should satisfy the personal needs of the worker and his/her family and the value attributed to them may not exceed the market value in the region. In the Government’s view, therefore, liquors of high alcoholic content and noxious drugs are not authorized means of payment as they may not be deemed to satisfy the needs of the worker and his/her family. In this connection, the Committee notes the comments of the General Workers’ Union, according to which no cases of payment of wages in the form of alcoholic drinks have been reported and no judicial decisions on this matter have been rendered. While noting these explanations, the Committee trusts that should any difficulties arise in the future with regard to the application of this provision of the Convention, the Government will take the necessary measures to give effect to this requirement by means of a specific prohibition.

In addition, the Committee notes that under section 259(2) of the Labour Code, non-monetary remuneration may not exceed the part of the wages paid in cash unless otherwise provided for in a collective agreement. The Committee wishes to refer, in this respect, to paragraph 118 of its 2003 General Survey on the protection of wages in which it questioned the propriety of setting the limit of authorized payments in kind at 50 per cent or more of money wages in view of the risk of unduly diminishing the cash remuneration necessary for the maintenance of workers and their families. While noting that the Convention does not set out a specific limit, the Committee considers that before authorizing the payment of such a high proportion of workers’ wages in kind, governments should carefully assess the possible repercussions for the workers concerned. The Committee accordingly requests the Government to provide additional information on the extent of such practice, and also to transmit copies of collective agreements providing for the payment of more than 50 per cent of the wages in kind.

Moreover, as regards the payment of wages in kind based on individual agreement, the Committee notes the Government’s indications that, contrary to section 267(1) of the previous Labour Code which authorized payment in kind when so agreed between the parties to the employment relationship, section 276(1) of the new Labour Code expressly provides that any such agreement must be in accordance with the conditions and the limits laid down in section 259 of the Code and therefore excludes “private” arrangements which might involve unlawful or unsolicited payments in kind.

Article 12. Payment of wages on time and in full. The Committee notes the comments of the General Confederation of Portuguese Workers (CGTP) according to which the current economic crisis has multiplied the problems of delayed payment of wages. The CGTP adds that in some cases the delayed payment of wages is also used by employers as a form of pressure to make workers accept less favourable working conditions under the threat of terminating the employment contract. The Committee notes, in this connection, that according to figures published by the Authority for Labour Conditions in May 2012, the total amount of wage arrears is estimated at €9.7 million and the number of persons concerned rose by 16 per cent in one year. The Committee requests the Government to transmit any comments it may wish to make in response to the observations of the CGTP. It also requests the Government to provide additional information on how the current economic crisis may have been impacting on the regular payment of wages and any specific measures taken or envisaged in this regard.

Part V of the report form. Practical application. The Committee notes the activity reports of the Wages Guarantee Fund for the period 2010–11, the inspection results concerning wages-related infringements observed between 2010 and 2012 and the copies of relevant judicial decisions. The Committee would appreciate it if the Government would continue to supply up-to-date information on the practical application of the Convention.