CMNT_TITLE

Protection of Wages Convention, 1949 (No. 95) - Nicaragua (RATIFICATION: 1976)

The Committee notes with regret that the Government’s report has not been received. It hopes that the next report will contain full information on the matters raised in its previous comments initially made in 2012.

Repetition

Article 6 of the Convention. Freedom of workers to dispose of their wages. The Committee notes the Government’s renewed reference to the Constitution and the Labour Code which, however, do not address specifically the question of protecting the full discretion of workers as to the use they wish to make of their wages against any duress that an employer might exert in this regard. The Committee wishes to refer, in this connection, to paragraph 210 of the 2003 General Survey on the protection of wages in which it noted that nothing short of an explicit legislative provision setting forth a general prohibition upon employers from limiting the freedom of workers to dispose of their wages in any form and manner, directly or indirectly, and not simply in respect of the use of company stores, can be regarded as giving full effect to the requirements of the Convention. The Committee again requests the Government to take steps to ensure that the national legislation gives full effect to Article 6 of the Convention.

Article 10. Attachment and assignment of wages. Following up on its previous comments, the Committee notes that both article 82 of the Constitution and section 92 of the Labour Code prohibit the attachment of the minimum wage, except when it is for the purpose of recovering the payment of alimony or maintenance allowances. The Committee also notes the Government’s statement that it does not intend to regulate the conditions and limits under which wages may be attached or voluntarily assigned. The Committee understands, however, that existing legislation prescribes limits to attachment of wages, for instance, Decree No. 468 of 27 February 1960 which allows for the attachment of up to one tenth of the salary of public employees exceeding 1,000 Nicaraguan cordobas (NIO) (approximately US$41.8) per month. It also understands that wages of private sector employees may be attached except for an amount equivalent to the minimum wage. As regards the specific case of attachment for ensuring the payment of alimony, it would appear that under Act No. 143 of 22 January 1992, the worker’s earnings may be attached in their entirety. Recalling that the Convention requires wages to be protected against attachment to the extent deemed necessary for the maintenance of the worker and his/her family, the Committee requests the Government to provide all necessary clarifications on the state of law and practice on this matter.

Article 12. Payment of wages on time and in full. In reply to the Committee’s previous comments concerning reported problems of delayed payment of minimum wages in the public sector and alleged abusive practices in export processing zones (EPZs), the Government indicates that no cases of delayed payment of wages have been brought to the knowledge of the labour inspectorate. The Government also indicates that in case of violations of this kind, the labour inspection services issue an order to the employer concerned for the payment of the wages due, failing which the sanctions provided for in Act No. 664 of 2008 on labour inspection apply. It further indicates that, while the general labour legislation does not set a specific time limit for the settlement of all outstanding payments upon the termination of a contract of employment, section 95 of the Labour Code applies by analogy, and therefore any outstanding payments have to be settled within ten days from termination of employment. Moreover, the Government indicates that, since 2007, the Ministry of Labour ensures through the labour inspectorate that enterprises requesting authorization for terminating their activities in the EPZs can do so only after settling any outstanding payments to the workers concerned. While noting the Government’s explanations, the Committee hopes that the Government will pursue its efforts to effectively prevent any problems of wage arrears, essentially by exercising efficient control and applying appropriate sanctions, so that workers receive their wages on time and in full, as required under this Article of the Convention.