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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.
Article 6 of the Convention. Freedom of workers to dispose of their wages. The Committee notes that the Government’s report does not reply to its previous comment on this matter. It therefore once again asks the Government to take the necessary steps to include in its legislation provisions that prohibit employers from limiting in any manner the freedom of workers to dispose of their wages. In this connection, the Committee draws the Government’s attention to its General Survey of 2003 on the protection of wages, in which it stressed (in paragraph 178) that “provisions regulating deductions from wages, the attachment of wages or the use of company stores do not cover all the ways in which workers can be limited in their freedom to dispose of their wages: one example is through exerting pressure on workers to make contributions to certain funds or to spend their wages in specific places. In the Committee’s opinion, it is therefore necessary for implementing legislation to contain an express provision generally prohibiting employers from restricting the freedom of workers to dispose of the wages, as set forth in Article 6 of the Convention.”
Article 7. Works stores. The Committee notes that, according to the Government, some enterprises, in agreement with the trade unions, conclude agreements with suppliers for the sale of their products to employees of the enterprises at preferential prices. It notes, however, that such agreements do not appear to lead to the establishment of works stores. The Committee further notes that the Government cites the names of a number of enterprises that have works stores but provides no further details on the matter. It therefore asks the Government to provide more extensive information on the way the works stores in the enterprises mentioned in the report are run and on the measures taken to ensure that no pressure is put on the workers concerned to use such stores or services, that the goods are sold at fair and reasonable prices and, in general, that stores established by the employer are operated not for the purpose of securing a profit but for the benefit of the workers concerned.
Article 10. Attachment and assignment. The Committee notes that in reply to its previous direct request on this point, the Government refers to sections 89 to 92 of the Labour Code. It notes, however, that of these provisions only section 92 relates to the attachment of wages, providing that the minimum wage may by attached only for the purpose of protecting the worker’s family. The Committee reminds the Government that, according to Article 10 of the Convention, wages – and not only the minimum wage – may be attached or assigned only in a manner and within limits prescribed by national laws or regulations, and must be protected against attachment or assignment to the extent deemed necessary for the maintenance of the worker and his family. The Committee therefore once again requests the Government to indicate the measures taken or envisaged to: (i) establish the conditions under which and the limits within which the amount of the wage exceeding the minimum wage may be attached; and (ii) regulate the voluntary assignment of wages.
Articles 12, paragraph 1, and 15(c). Payment of wages at regular intervals. The Committee notes that section 86 of the Labour Code establishes rules, inter alia, to set the time limits within which wages must be paid to manual workers and salaried employees. It notes that this provision establishes also that in the event of delay in the payment of wages, the employer must pay the worker an increment equal to 10 per cent of the wage for every week of delay, and “for each of the two weeks of work following the first”. The Committee requests the Government to provide more detailed information on the system for payment of an increment in the event of late payment of wages and, more specifically, to explain the meaning of “for each of the two weeks of work following the first”.
Article 12, paragraph 1, and Article 15(c) of the Convention. Payment of wages at regular intervals. The Committee notes with regret that the Government has not, as the Committee asked in its previous comments, provided information on the situation concerning the problem of non-payment or late payment of wages and on the practical measures taken to ensure that wages are paid at regular intervals, including information on inspection carried out, breaches of the provisions of the Labour Code regarding wage protection, and the measures taken to resolve them. The Committee understands that there have been delays in the payment of wages in certain instances, for example at the Ministry of Transport and Infrastructure. The Committee reminds the Government that, as it pointed out in its General Survey of 2003 on the protection of wages (paragraph 355), “the quintessence of wage protection is the assurance of a periodic payment allowing the worker to organize his everyday life with a reasonable degree of certainty and security”, and that consequently, “the delayed payment of wages or the accumulation of wage debts clearly contravene the letter and the spirit of the Convention”. The Committee again asks the Government to provide detailed information on the measures taken to eliminate delays in the payment of wages.
Article 12, paragraph 2. Settlement of wages due upon termination of a contract of employment. The Committee notes that, according to section 68 of Decree No. 50-2005 of 8 August 2005 regulating industrial export processing zones, labour relations in the zones are governed by the Labour Code or by the legislation on the public service, as the case may be. It notes, however, the report on the human rights situation in Nicaragua in 2007 issued by the Nicaraguan Human Rights Centre, which refers to serious breaches of workers’ rights in the export processing zones. This report refers to several enterprises in the zones which have dismissed workers – and in some cases have closed down – without settling the wages owed to the workers concerned. The Committee reminds the Government that “the principle of the regular payment of wages, as set out in Article 12 of the Convention, finds its full expression not only in the periodicity of wage payments, as may be regulated by national laws and regulations or collective agreements, but also in the complementary obligation to settle swiftly and in full all outstanding payments upon the termination of the contract of employment” (General Survey of 2003 on the protection of wages, paragraph 398). Given the seriousness of the situation described in the report of the Nicaraguan Human Rights Centre, the Committee asks the Government to provide all available information on the abovementioned practices and to indicate the measures taken to enforce the legislation on wage protection in the enterprises concerned.
The Committee is raising other matters in a request addressed directly to the Government.
The Committee notes the Government’s report.
Article 6 of the Convention. The Committee notes that, notwithstanding the provisions of article 17(a), (b) and (r) of the Labour Code, there does not appear to exist in national laws and regulations any provision explicitly prohibiting the employer from limiting in any manner the freedom of the worker to dispose of his/her wages, as required under the relevant provision of the Convention. The Committee requests once again the Government to take the necessary measures in order to bring its legislation into conformity with the Convention in this respect.
Article 7. The Committee notes that the various examples of collective agreements supplied by the Government in its report contain provisions which seem to relate more to allowances in kind, i.e. goods received by the worker or his/her family in the way of groceries or food for their immediate personal consumption than to the establishment of works stores for the sale of commodities to the workers or other related services. The Committee asks the Government to supply additional information on the practice of works stores or services, and also to indicate any specific measures to ensure that the workers are not coerced to make use of them.
Article 10. The Committee notes the Government’s indication that under article 3 of the Minimum Wage Act the minimum wage is unattachable unless this is necessary to meet the worker’s obligation to provide for the needs of his/her family and dependants. However, the Committee recalls that Article 10 of the Convention does not seek to protect minimum wages only but wages in general. Therefore, the Committee requests the Government to take the necessary measures in order to bring the national legislation into full conformity with the Convention with regard to attachment or assignment of wages.
Following up on its previous observation, the Committee notes the statistical information supplied by the Government regarding the application of the Convention in practice. According to the figures provided in the Government’s report, in 1999, as many as 1,400 labour inspection visits were carried out and 421 cases of non-compliance with wage legislation were observed, representing 8 per cent of the total number of violations of labour legislation and affecting 7,677 workers. The Committee notes, however, that the Government has not fully replied to the request for comprehensive information on the administrative, legislative or other measures to ensure the timely payment of wages and the rapid settlement of any wage arrears already outstanding, including the effective enforcement of dissuasive sanctions for the non-payment of wages. The Committee recalls that the problem concerns the implementation in practice of national labour legislation giving effect to the Convention which requires a sustained effort and a wide range of measures for effective supervision, strict application of penalties and the settlement of existing wage debts. The Committee therefore requests the Government to continue to supply information on the situation of wage payment and any concrete and specific measures taken to ensure the regular payment of wages in accordance with Articles 12(1) and 15(c) of the Convention.
The Committee is also addressing a direct request on certain other points.
Further to its observation, the Committee requests the Government to supply more detailed information on the following points.
Article 6 of the Convention. The Committee notes that the new Labour Code no longer contains provisions prohibiting the employer to coerce the workers to use particular shops or services. While noting the absence of any provisions in the Code restricting the workers' freedom to dispose of their wages, the Committee asks the Government to indicate measures taken or envisaged to ensure that employers are prohibited from limiting in any manner the freedom of the worker to dispose of his or her wage.
Article 7. The Committee notes the Government's indication in the report that works stores or services are established by collective agreements and offer basic products at low prices in practice. It asks the Government to provide further information on the practice of works stores or services, including copies of some collective agreement provisions as examples. Please also indicate any measures taken or envisaged, in addition to those mentioned under Article 6, to ensure that the workers are not coerced to make use of them.
Article 10. The Committee notes that section 92 of the Code only prohibits the attachment of the minimum wage. It requests the Government to indicate the measures adopted or envisaged to prescribe the manner in which and the limits within which wages may be assigned, or the wage exceeding the minimum wage may be attached.
Article 12(2). The Committee asks the Government to indicate measures taken or envisaged to ensure a final settlement of wages upon the termination of a contract of employment.
1. The Committee has noted the Government's report, as well as the Labour Code (Act No. 185, Official Gazette, 30 October 1996). The Government has also supplied further information concerning the application of an Act to Create the National Payroll, including regulations made thereunder and a sample format. The Committee requests the Government to refer to the direct request it is making on certain points regarding the new Labour Code.
2. The Committee recalls that it had earlier noted the report of the Committee set up to examine the representation made by the Latin American Central of Workers (CLAT) under article 24 of the Constitution, alleging non-observance of certain Conventions, including Convention No. 95, by Nicaragua. The above-mentioned Committee, had in its report, requested the Government to take the necessary measures, in accordance with Articles 12(1) and 15(c) of the Convention, to ensure compliance by all enterprises with the legislative provisions such as the Labour Code relating to the protection of wages, and in particular the regular payment of wages. The Committee consequently requests the Government to supply information on measures taken pursuant to these recommendations so as to follow up the issue.
As regards the application of the Convention in practice, the Government has submitted an example of a case of labour inspection which revealed infringements of labour laws. The Government's report further states that through 422 labour inspection visits made, 178 infringements in the field of wages were revealed, which represent 13 per cent of total infringements, affecting 7,458 workers. The Committee takes due note of the information provided, but notes that no specific information has been supplied on measures to ensure the regular payment of wages in practice. The Committee therefore requests the Government to continue to supply information on any measures taken or envisaged to ensure the application of the national legislation giving effect to the provisions of the Convention, with special reference to Article 12(1) on regular payment of wages mentioned above, including information on the inspections made, and cases of violations reported and penalties or other sanctions imposed in accordance with Article 15(c) with regard to the regular payment of wages.
The Committee recalls that it suggested improvements in the draft Labour Code in relation with Articles 1 and 15(c) of the Convention and also pointed out the lack of provisions in the draft Code corresponding to Articles 4(1) (payment in the form of alcoholic liquor or of noxious drugs), 6 (freedom of the workers to dispose of their wages), 7 (measures concerning works stores and services), 9 (prohibition of deductions for obtaining or retaining employment), and 12(2) (final settlement of wages).
The Committee noted the Government's earlier indications that certain provisions of the draft Code already take account of a part of the Committee's advice, that the draft has been submitted to the National Assembly and that modifications and additions to the draft have been made at the committee of labour. It hopes that appropriate measures will be taken to ensure the conformity of national legislation with the provisions of the Convention and requests the Government to report on any progress made concerning the above draft and to provide the text when it is adopted.
In its previous observation, the Committee noted the report of the Committee set up to examine the representation made by the Latin American Central of Workers (CLAT) under article 24 of the Constitution, alleging non-observance of certain Conventions including Convention No. 95 by Nicaragua. In the above report, the Government is requested to take the necessary measures, in accordance with Articles 12(1) and 15(c) of the Convention, to ensure compliance by all enterprises with the legislative provisions such as the Labour Code relating to the protection of wages, and in particular the regular payment of wages. The Committee consequently requested the Government to supply information on measures taken pursuant to these recommendations so as to follow up the issue.
The Committee notes the Government's report refers only to the national provisions giving legislative effect to the Convention and does not include any information on their application in practice. It however notes the Government's reference to the Act to Create the National Payroll (Decree No. 1160, published in the Official Gazette No. 1 of 3 January 1983) and the Regulations made thereunder, although this information is also limited to the contents of provisions and not about the actual practice. The Committee therefore requests the Government to supply full information on any measures taken or envisaged to ensure the application of the national legislation giving effect to the provisions of the Convention, and in particular Article 12(1) on regular payment of wages mentioned above. It asks the Government to include, for instance, information on the inspections made, cases of violations reported and penalties or other sanctions imposed in accordance with Article 15(c). The Committee also requests the Government to supply a copy of the payroll formats determined by the Ministry of Labour in accordance with section 1 of the above Regulations, and to give a general appreciation of the manner in which the above legislation on the national payroll is applied in practice.
REQUESTS The Government is asked to report in detail in 1997. #REPORT_DATE:00:00:1997
The Committee notes the Government's indications that certain provisions of the draft Code already take account of a part of the Committee's advice, that the draft has been submitted to the National Assembly and that modifications and additions to the draft have been made at the committee of labour. It hopes that appropriate measures will be taken to ensure the conformity of national legislation with the provisions of the Convention and requests the Government to report on any progress made concerning the above draft and to provide the text when it is adopted.
The Committee notes that the Governing Body adopted at its 264th Session (November 1995), the report of the committee set up to examine the representation made by the Latin American Central of Workers (CLAT) under article 24 of the Constitution, alleging non-observance of certain Conventions including Convention No. 95 by Nicaragua. In the above report, the Government is requested to take the necessary measures, in accordance with Articles 12(1) and 15(c) of the Convention, to ensure compliance by all enterprises with the legislative provisions such as the Labour Code relating to the protection of wages, and in particular the regular payment of wages. Furthermore, the Government is asked to submit full information on the measures taken so that the Committee of Experts can follow up the issue. The Committee requests the Government to supply information on measures taken pursuant to these recommendations.
[The Government is asked to report in detail in 1996.]
The Committee notes that the Governing Body at its 261st Session (November 1994) entrusted to a tripartite committee the examination of a representation made by the Latin American Central of Workers (CLAT), under article 24 of the Constitution, alleging non-compliance by Nicaragua with certain Conventions including Convention No. 95 on protection of wages.
Pending the Governing Body's adoption of the conclusions and recommendations of the above Committee, the Committee is addressing a direct request to the Government concerning the draft Labour Code, on which it has been commenting with a view to bringing the national legislation in line with provisions of the Convention.
Further to its previous direct request, the Committee notes the Government's report and the draft Labour Code communicated to the International Labour Standards Department of the ILO by way of consultation. It would point out the following:
1. The definition of "wages" under section 67 could be improved by including the essentials of the definition given by Article 1 of the Convention according to which the term "wages" means "remuneration or earnings, however designated or calculated, capable of being expressed in terms of money and fixed by mutual agreement or by national laws or regulations, which are payable in virtue of a written or unwritten contract of employment by an employer to an employed person for work done or to be done or for services rendered or to be rendered".
2. In order to give effect to Article 15(c) of the Convention, penalties in relation to certain measures for protection of wages should be prescribed in application of section 71, for example, penalties for payment in the form of promissory notes, vouchers or coupons.
3. No provision in the draft Code gives effect to the following provisions of the Convention: (a) prohibition of payment in the form of liquor of high alcoholic content or of noxious drugs (Article 4(1)); (b) prohibition for the employer to limit in any manner the freedom of the workers to dispose of their wages (Article 6); (c) prohibition of the measures to coerce the workers to make use of works stores or services operated in connection with an undertaking (Article 7(1)); (d) prohibition of any deductions from wages with a view to ensuring a direct or indirect payment made by a worker to an employer or to an intermediary for the purpose of obtaining or retaining employment (Article 9); and (e) provision on the final settlement of wages upon the termination of a contract of employment (Article 12(2)).
The Committee hopes that the Government will reconsider the draft Labour Code taking into account the above remarks so that the draft, when adopted, will give effect to the relevant provisions of the Convention, and requests the Government to continue reporting on the progress made in this connection.
The Committee notes that the Government intends to introduce reforms and legislate in relation to, among other subjects, this Convention, with a view to bringing the national legislation into conformity with it. The Government states that for this purpose the Legal Directorate of the Ministry is preparing draft reforms based on the comments of the Committee of Experts. It also notes that this draft will be sent for consultation to the International Labour Standards Department of the ILO, after it has been revised by the higher authorities of the Ministry. The Committee requests the Government to report on the progress made in the preparatory work for the above draft giving effect to the provisions of this Convention.