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The Committee notes the information provided by the Government in its report, in particular the adoption of the new Labour Code, Act No. 99/2003, which repeals the Wages Act No. 17/86, and of its Regulations, Act No. 35/2004. It also notes the Government’s explanations concerning the application of Articles 9 and 11 of the Convention as well as the supplementary information submitted by the Portuguese Confederation of Trade and Services (CCSP) and the General Workers’ Union (UGT) on certain aspects of the Convention.

Article 4. Partial payment of wages in kind. The Committee notes that the new Labour Code and its Regulations do not contain a specific provision on the prohibition of the payment of wages in the form of liquor of high alcoholic content or noxious drugs, as required under Article 4, paragraph 1, of the Convention. The Committee wishes to refer, in this connection, to paragraph 137 of the 2003 General Survey on the protection of wages in which it pointed out that “implementing legislation may give effect to this requirement either by means of a specific prohibition or through an authorization clause excluding alcohol or drugs. While a specific prohibition may be the most effective manner of securing compliance with this provision, the Convention does not appear to go as far as requiring this. It would seem sufficient for any authorization for the payment of wages in kind contained in laws or regulations, collective agreements or arbitration awards to exclude the possibility of paying wages in the above forms, so that any practice of this kind attracts the penal or other sanctions applicable to unauthorized forms of payment in kind”. Recalling that the Committee has been commenting on this point for several years, it requests the Government to take appropriate action in order to give full effect to the Convention in this respect.

In addition, the Committee notes the Government’s indication that section 267(1), (3) of the Labour Code provides that wages must be paid in cash, and that they may only be paid in other forms subject to prior agreement between the parties. The Committee recalls, in this regard, that Article 4 of the Convention makes exclusive reference to national laws or regulations, collective agreements or arbitration awards as being the only valid legal bases for authorizing the partial payment of wages in kind. The aim is clearly to exclude “private” arrangements which might involve unlawful or unsolicited payments in kind to the detriment of the worker’s earnings. The Committee accordingly requests the Government to take the necessary steps to ensure that the national legislation is brought into line with the Convention in this respect.

Part V of the report form. The Committee requests the Government to continue supplying up to date information on the practical application of the Convention, including, for instance, labour inspection results, official studies or reports related to the protection of wages such as activity reports of the wage guarantee fund, copies of any relevant laws or regulations not previously communicated to the Office, etc.