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A Government representative recalled that the Committee of Experts, in its observations on the application of the present Convention, had asked questions on the discussions held last year in the present Committee and on the information provided by his Government in its report on the Convention. His Government had also communicated a written reply to the Committee of Experts and to the present Committee, which was given to the Secretariat.

Given the size of the written response, resulting from the fact that the Government gave factual and legal details, as well as reports and data provided by the labour inspectorate, it would be preferable that the present Committee gave the Committee of Experts an opportunity to examine this information and that the discussion on the questions asked be delayed. In any event, the Government wished to inform the present Committee that the situation continued to progress in a satisfactory manner. At the end of the first trimester of 1989, the number of workers who had wages in arrears amounted to 15.436, representing 23.8 per cent of the total number registered at the end of 1985. The number of undertakings in arrears in the payment of wages was 117, 17.5 per cent of the 1985 total. In March 1988 the arrears in wages concerned 20,802 workers and 185 enterprises, respectively 25.8 per cent and 36.7 per cent of the preceding year's total. The basic wages and all other benefits were taken into account in these calculations. The total number of underatkings in arrears in the payment of wages included active and stagnant enterprises and undertakings that had been closed. Between 1 January 1988 and 31 March 1989 only 5,765 workers have benefited from Act No. 17/86 at their own request.

The workers who had wages in arrears only represented 0.5 per cent of the salaried workers. The claims of workers, wages or claims of another nature were protected by privileges and paid on a priority basis as against the debtor undertaking's assets. The workers with wages in arrears may under Act No. 17/86, either institute regular proceedings before the Labour Court or file a complaint with the labour inspectorate.

From 1 January 1988 to 31 March 1989 the labour inspectorate imposed 952 fines upon undertakings in arrears in the payment of wages and prepared 5,050 determinations specifying the amount of wages in arrears due to workers. As regards the application of Act No. 17/86, the labour inspectorate prepared during the same period 75 reports of inquiry, establishing that 71 undertakings were in arrears in the payment of wages.

The speaker concluded by stating that, according to the labour inspectorate and to his Government, this issue should be settled through the normal means of prevention applicable to labour legislation violations. Indeed, the workers of this country who had wages in arrears have used more frequently the normal means of protection than the exceptional procedure established by Act No. 17/86, which shows that this problem no longer had the social dimension it once did.

The Employer member of Portugal stated that, in 1986, the Portuguese employers had declared before the present Committee that in three years' time the delay in the payment of wages would no longer be a grave social problem. Since 1985 the delay in the payment of wages in a great many enterprises had created a very complex situation. The main causes of these difficulties were negative events, such as the no-compensation nationalisations which had occurred in the private sector, discretionary public intervention in companies and the adoption of one of the EEC's strictest laws on labour contract questions. All the events which occurred between 1974 and 1979 had aggravated the economic crisis, which had very seriously affected both public and private enterprises in the beginning of the 1980s. Happily, the situation had reversed, as the Committee of Experts had noted and as was also evident in the available statistics, which confirmed that the delay in the payment of salaries had ceased to be an endemic problem. The number of enterprises affected had fallen 82.5 per cent, from 668 in 1985 to 117 in March 1989; 15,436 workers were affected, that is 86.2 per cent fewer than in 1985; this represented 0.5 per cent of all salaried employees. This amounted to progress, even if as the Portuguese employers believed, all the individual cases of workers still affected should be supported. Whilst he noted with interest the explanations of the Government representative regarding the positive effects of Law No. 17/86, the speaker stressed these improvements had occurred because of the sacrifices which workers and employers had been willing to make in order to save most of the companies affected. In particular, besides financial difficulties, the employers had come up against other difficulties such as outdated legislation on labour contract matters (which had remained outdated until the beginning of 1989) and permanent restrictions on credit. If the number of enterprises affected continued to fall at the current annual rate, the speaker hoped that the situation as regards delay in payment of salaries would be completely resolved in the coming two years.

A Worker member of Portugal stressed that action by the supervisory bodies of the ILO had greatly contributed to an improvement in the situation, as the delay in the payment of wages had markedly diminished. However, the problem remained. Non-payment of wages was an affront to the fundamental rights of workers and this amounted to inadmissible violation and exploitation. The number of workers affected merely gave an idea of the breadth of the problem; the essential fact was that there were still skilled workers who had not received their wages. Figures given by the Government provided significant evidence of this. They showed that the workers affected numbered several thousand; official statistics show that they were not a fixed group of workers, since workers enter and leave this situation of delayed wages. The Government had stated that, on the one hand, the situation was well under control and, on the other hand, the employers were responsible, attempting thus to justify their own failure to adopt specific measures and their lack of responsibility. The worker still ran the risk of not receiving his wages and, should this occur, his situation would not immediately be resolved. When employers did not pay wages, the existing law did not sufficently protect them and did not ensure conformity with the Convention: the notion of wages was too limited as it covered basic remuneration only and did not take into consideration subsidies, bonuses and other supplements; in cases of non-payment of wages, there were time limits within which the worker had to claim his due, that is two months if it is a question of the whole wage, or four months if it is a question of only part of the wage. By making partial, or even symbolic, wage payments, employers could block any action by the worker; there were cases in which a worker suffered a permanent delay of three months in the payment of his wages. The penalties for non-payment of wages and their application were ineffective; in cases of termination of contract for the reason of non-payment of wages or in cases of closure of the enterprise, the worker ran the risk of never receiving his unpaid wages; the new law on dismissals, which had been adopted in February 1989, continued to place upon the worker the burden of proving the guilt of the employer in cases of wage non-payment. In the contrary case, the worker did not receive any compensation if he terminated his contract. Finally, the speaker recalled that quantitative data did not allow one to judge application of the Convention, that the law and penalties were neither effective nor deterrent and therefore did not provide true protection of wages. The speaker emphasised that the non-payment of wages was a violation of workers' basic rights and a way of limiting the exercise by workers of their individual and collective rights; she considered that the problem should continue to be examined by the Committee of Experts so that the Government would assume its responsibilities and adopt the necessary measures for an overall solution to the problem.

The Workers' members recalled that the question of non-payment of wages in this country had been under discussion by the present Committee for some time. Although they noted that improvements had actually taken place and that the number of workers affected been reduced this did not mean that the question was settled; as long as there was a single worker who did not receive his wages on time, one had to continue taking action. The difficulties that arose were of several kinds. The case, for example, of an employer who continues running his enterprise whilst not making regular wage payments; this causes a situation in which the workers are often too frightened to take any action, Penalties against such an employer should be severe, as a worker who does not receive his wages very quickly encounters major obstacles for himself and his family and quickly finds himself in a state of poverty. Regular wage payments (which, by the way, he thought should be made every two weeks), were essential and especially so for manual workers. Another difficulty arose because employers, especially during the economic crisis, had not been paying wages regularly in order to place pressure on the workers to accept reductions in pay. A third difficulty to which reference had been made in the report of the Committee of Experts results from the closure of enterprises for different reasons, such as, for example, bankruptcy, fraudulent bankruptcy which leaves the workers without a responsible party against which to take action. In this respect, it should be noted that in certain countries, especially Common Market countries, solidarity funds had been set up which acted as substitutes for employers' contributions to the payment of salaries to the workers. Finally, whilst noting some progress, the Workers' members also recalled that full remuneration remained to be paid to several tens of thousands of workers and that existing efforts on that issue should be kept up.

The Employers' members declared that, on this question of the protection of wages, notably the delay in the payment of salaries and the non-payment of salaries, the present Committee had noted real progress for the first time the previous year; they noted that further progress had taken place. Nevertheless the problem continued to exist. This was recognised by everybody and it had to be stopped as soon as possible. They wondered whether all the examples provided by the Workers' member came within the scope of the Convention. They stated that they were concerned about Law No. 17/86 respecting arrears in wages, which appeared to have been interpreted in a restricted manner, the notion of basic remuneration seeming even more limited than the definition of salaries in the Convention; they considered that this deficiency should be remedied as soon as possible.

The Government representative remarked that the Employers' members and Workers' members had both noted progress and that he wished to make some corrections to the statements made. The law expressly prevented any reduction in wages and any agreement made by a worker to such a reduction had no effect and at any time the worker could claim the differences in wages. Law No. 17/86 was an exceptional law concerned only with basic remuneration; salary supplements were guaranteed by the country's general law. Workers were not obliged to accept the application of Law No. 17/86, it was only applied if workers opted for its application, otherwise they could make use at any time of the normal channels for wage protection. In cases of non-payment of wages, the worker could file a complaint with the labour inspectorate immediately after the day on which payment was due. The problem of fraudulent bankruptcy and of the disappearance of employers was a false problem; companies were registered and their assets could be seized.

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The Government has communicated the following information:

it was convinced that it should wait for the year in which the report is normally due in order to reply to the comments of the General Confederation of Portuguese Workers, Intersindical Nacional - (CGTP-IN). The information refers to that previously given and brought up to date on 31 March 1988. The Government considers that the observations made by the CGTP-IN rest on an erroneous foundation. Several annexes are furnished, particularly concerning labour inspection activities.

In addition, a Government representative stated that his Government understood the anxieties of the General Confederation of Portuguese Workers (CGTP) in regard to the regular and timely payment of wages. The 1969 Act had, in fact, conformed to the provisions of the Convention prior to its ratification in 1983. This law provided for the mandatory payment of timely and regular wages and imposed fines for non-compliance. The labour inspection system was responsible for the control of the implementation of the law. Legislative Decree 491/85 established a new system of penalties. During the 1980s his country had experienced a serious economic crisis and the non-payment of wages was one of the methods used by small enterprises to reduce their financial outlay. It was often abused and caused an excessive number of wages to be paid in arrears and brought about a serious social situation of which the present Committee knew, both from the representation made by the CGTP and by the information supplied regularly by the Government. The situation had now returned to normal and written information has been sent by his Government on this subject to the Committee of Experts. Some of the significant factors in this improvement were the upswing in economic conditions, the adoption of deterrent legislation, control by the labour inspectorate, the awareness of the population (to which the observations presented to the ILO and information published on this subject had contributed decisively), and the dynamic action taken by the trade unions and debates in Parliament. The legal provisions adopted in 1985 and 1986 had been noted with satisfaction by the Committee of Experts, who had mentioned the modifications made in the cases of progress. Although the number of workers affected by the payment of wages in arrears had decreased from some 64,000 in 1986 to some 20,000 in March 1988, that is 0.72 per cent of wage earners, the Government continued to be concerned over the situation of these workers. Referring to the observations made by the CGTP and to the subsequent information communicated by his Government in regard to the role played by the labour inspectorate, the Government representative stated that the labour inspectorate exercised its powers in regard to both basic wages and allowances. He hoped that, in accordance with the spirit of tripartite dialogue which was the basis of the ILO, certain doubts which remained would be clarified and resolved in his country through the strengthening of contacts amongst workers' and employers' organisations and labour administration bodies.

The Employers' members believed that progress had taken place, in particular in regard to the adoption of legislation provisions, and they were pleased to note the positive attitude of Government which had allowed a true dialogue to take place. Certain questions, which the Committee of Experts had raised, remained outstanding, but the main thing was that the continuation of contact between the Government and the Committee of Experts would allow a solution to be found. Problems which arose from arrears in the payment of wages, which were sometimes considerable, remained. Although the number of wages in arrears was less, progress needed to be made. The Government had indicated that measures had already been taken or were envisaged. It was necessary that observations made by the employers' and workers' organisations be taken into account and to continue the tripartite dialogue which was established. Questions also remained on statistics, and the calculations of wages. Much information was available and this should permit the Committee of Experts to properly evaluate the situation. The Employers' members were convinced that the Government would reply to the specific questions addressed to it and would clarify those points which needed explanation.

The Workers' members considered that the statement by the Government representative showed the positive attitude and good intentions of his Government. They were pleased to note the agreement that existed between the Government and the trade unions, which had certainly come about as a result of the representation made by the CGTP. The Government had confirmed that the situation had improved and that measures were being taken to remedy the situation. they appreciated this sign of goodwill.

The Worker member of Portugal stated that in the four years that had passed since her organisation had presented their representation to the ILO on the non-payment of wages, an observation which was based primarily on the violation of the Convention, the incidence of non-payment had decreased noticeably, although it still continued to exist. She stressed the important role played by the ILO and by the present Committee in this decrease. Currently there still remained a large number of workers whose wages had not yet been paid as the decrease in the number of workers had been mostly due to the close down of firms and the high amount of wage losses suffered by these workers. The number of workers concerned was estimated by the Government to be 20,000 but was estimated by her organisation to be 80,000, that is, 2.8 Per cent of all wage earners. The figures of her organisation were based on 500 enterprises in different economic sectors throughout the country. The difference in the figures resulted from the different definitions of wages that were used. The Government excluded from their figures stagnating firms or those which had closed down, as well as those workers who were presently receiving their wages but to whom arrears were due. The situation was very serious and the figures indicated an average debt of eight to ten times the value of the minimum salary for each worker for the past two years. Unpaid wages continued to be used by employers as a means of putting on pressure, and as a check to worker protests. Unemployment had increased, and employment which was offered was often casual. The Government had tried to show that the situation was not serious, but what could be more serious for a worker than to work and to not receive his wages: it was his own and his family's life that was in question. The lenient attitude to which the Government representative had referred was unacceptable and measures should be taken in order to resolve the situation definitively. This also concerned public enterprises and the Government should, at least, redress its own shortcomings. The labour inspectorate lacked personnel and technical resources, and no measure had been taken in this area. The situation should be the subject of an examination by the Committee of Experts and the Conference Committee next year.

The Government representative stated that the observations made in 1987 by the CGTP had been sent immediately to the labour inspectorate which had presented their first report. This is adjoined to the additional information furnished by his Government to the present session of the Conference. In regard to the figures of 20,000 or 80,000, there was no document to confirm or disprove those supplied by the CGTP. He had used those supplied by the labour inspectorate. In regard to the allegations concerning the situation in a public enterprise mentioned by the Worker member of Portugal in the present Sitting, he said that as he had no information on this matter, he could not comment.

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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.

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Article 4 of the Convention (prohibition of the payment of wages in the form of liquor of high alcoholic content or of noxious drugs).  Further to its previous comments, the Committee notes once again the Government’s repeated reference to the restrictions that prevent the payment of wages in the form of alcoholic beverages or drugs harmful to health, referred to in certain sections of the Act on employment contracts, as article 21(1)(g) - respecting the prohibition of refectories, canteens, stores, etc., operated for the purpose of making a profit - article 91(1) and (3) - respecting the method of payment and authorizing partial payment in the form of allowances in kind - and article 92(3) - respecting the place of payment of wages - as well as in article 1(4) of the Decree-Law No. 69-A/87 of 9 February 1987. It recalls that these sections are not sufficient to give effect to this Article of the Convention. The Government also indicates that the fact of ratifying the Convention determines its incorporation in the Portuguese domestic law (article 8(2) of the Constitution), so that the prohibition of this provision of the Convention already exists in the national system. The Committee recalls that the fact of ratifying an international labour Convention, as a member State of the Organization, obliges the State to adopt the necessary legislation which would apply the provisions of the Convention to the country. Thus, the Committee reiterates its hope that the Government will take the necessary measures to bring its national regulations into conformity with this provision of the Convention.

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1.  The Committee notes the full information provided by the Government in its report in reply to the Committee’s previous comments.

With reference to its previous observations concerning the arrears and non-payment of wages to workers in certain enterprises, the Committee notes the detailed information provided in the 1998 report on labour inspection. The Committee notes the positive trend respecting wage arrears in the country, taking into account developments between 1986 and 1998, and hopes that the Government will continue providing information in the future.

In its previous observations, the Committee had noted that the concept of "basic pay" used by Act No. 17/86 is a more limited concept than that set out in Article 1 of the Convention. In this respect, the Committee requested the Government to provide information on the measures which guarantee the payment of components of remuneration other than basic pay. The Government indicates that the general protective measures envisaged in Act No. 17/86 relate to all the components of remuneration, and that this term is broader than the expression "basic pay". It also refers to section 82 respecting the legal status of individual employment contracts, annexed to Legislative Decree No. 49408 of 24 November 1969, which provides that "remuneration includes basic pay and any other regular or periodic benefit paid directly or indirectly in cash or in kind", with the clarification in subsection 3 that "without proof to the contrary, remuneration shall be considered to be any benefit provided by the employer to the worker". The Committee also notes that the protection set out in Act No. 17/86 covers benefits by way of compensation, such as paid holiday and other benefits, but that maternity leave is not included as it is not an obligation borne by the employer.

2.  The Committee notes the observations made by the General Confederation of Portuguese Workers (CGTP-IN).

In the first place, the CGTP-IN regrets the existence of temporary work enterprises which charge workers for finding them a job, which is contrary to Article 9 of the Convention. In its reply to the observations made by the CGTP‑IN, the Government does not refer to this issue and the Committee therefore requests the Government to provide information on the measures taken to prohibit any deduction from wages with a view to ensuring a direct or indirect payment for the purpose of obtaining employment made by a worker to an employer, as provided in this Article of the Convention.

The CGTP-IN also states that the Government should intensify its inspection activities in relation to compliance with labour legislation, which would reduce abuses involving failure to comply with the provisions of the Convention. In its reply, the Government indicates that it has invested in the recruitment of new labour inspectors over the past four years (the employment of some 100 inspectors), which would give grounds for assuming that there is an improvement in the quality and quantity of inspection activities. The Committee notes this information and requests the Government to continue providing information on this matter.

The CGTP-IN’s second observation relates to cases of abuse concerning the payment of wages in kind to certain categories of workers with the principal objective on the part of the enterprises concerned of evading their social obligations and, in particular, the payment in full of taxation and social security contributions. The CGTP-IN states that, in order to resolve this situation, the Government should adopt appropriate rules respecting taxation and social security and control such practices more closely. In its reply, the Government states that the Act approving the general budget of the State for 2000 included fiscal measures intended to promote more appropriate practices in enterprises. Furthermore, at the level of the public administration, concerted action has been taken involving the tax authorities, social security and the labour inspectorate to improve inspections, which it is planned to intensify in future. The Committee recalls that Article 4 provides for the possibility of the partial payment of wages, but not their total payment, in the form of allowances in kind in certain industries or occupations, and it requests the Government to continue providing information on the measures taken and the efforts made to achieve greater control over such payments.

The CGTP-IN’s third observation relates to arrears in the payment of wages. The CGTP-IN admits the improvement in the situation as a result of economic growth in recent years. Nevertheless, the CGTP-IN adds that official data are far from reflecting the real situation, since they are based on data obtained following labour inspections, which cannot be considered to constitute statistics on this matter. The Government replies that, as recognized by the CGTP-IN, there has been a positive trend in the reduction of arrears in the payment of wages. It also refers to the credit guarantee mechanism established by Act No. 219/99, of 15 June 1999, respecting the Wage Guarantee Fund, to which workers can have recourse when they are the victims of wage arrears. The Government adds that the protection of wages is a priority for the General Labour Inspectorate, which had developed methods of intervention in cooperation with the social partners. The Committee notes these explanations and requests the Government to continue providing information in its next report.

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Article 4. The Committee notes the Government's repeated reference to certain sections of the Act relating to individual employment contracts - sections 21(1)(g) (respecting the prohibition of refectories, canteens, stores, etc., operated for the purpose of making a profit), 91(1) and (3) (respecting the method of payment and authorizing partial payment in the form of allowances in kind and 92(3) (respecting the place of payment of wages). It notes that these sections are not sufficient to give effect to this Article of the Convention. The Committee can only reiterate its hope that, as the Government had indicated in the past, it will take the necessary measures to bring the law and regulations into conformity with national practice and with this provision of the Convention as regards the prohibition of the payment of wages in the form of liquor of high alcoholic content or of noxious drugs.

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1. The Committee notes with satisfaction that Legislative Decree No. 5/94 of 11 January 1994 provides for the information to workers concerning the conditions, among others, of wages, in conformity with Article 14(a) of the Convention.

2. Further to its previous observations concerning the arrears and non-payment of wages for workers in certain enterprises, the Committee notes the reports of the labour inspectorate. The Committee notes that under the new methodology, the reports only show the cases, which were observed by the labour inspectorate during the period in question, of situations of illegal arrears and non-payment of wages, which added up to 16 enterprises, 583 workers during June 1994, for instance. It is thus impossible to appreciate whether or not the total number of such situations is diminishing. The Committee once again hopes that the Government will continue to make every effort to resolve this situation and requests the Government to continue supplying information in this respect.

The Committee noted, in its previous observation, that the concept of "basic pay" used by Act No. 17/86 is a more limited concept than that set out in Article 1 of the Convention. It recalls that, under the Guidelines on the Application of this Act adopted by the Minister of Labour and Social Security on 8 October 1986, amounts such as holiday pay and maternity and other similar pay are not covered by this Act. The Committee notes the Government's explanation that the Act No. 17/86 provides for additional guarantee of wages by even permitting the worker to terminate or to suspend the employment contract. The Committee requests the Government to supply information on the measures to guarantee the payment of other kinds of remuneration than the "basic pay" covered by this Act.

3. The Committee requests the Government to refer to the request that is being addressed to it directly.

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The Committee notes the Government's report. With reference to its previous comments, the Committee notes the explanations provided by the Government as regards Articles 2, paragraph 1, and 15(c) and (d) of the Convention.

Article 4. The Committee notes the explanations provided by the Government. The Committee wishes to point out that neither sections 21(1)(g) (respecting the prohibition of operating refectories, canteens, stores, etc., for the purpose of securing a profit), 91(1) and (3) (respecting the method of payment and authorising partial payment in the form of allowances of other kinds) and 92(3) (respecting the place of payment of wages) of the Act respecting individual employment contracts, nor Legislative Decree No. 440/79 (respecting the guaranteed minimum wage) can be considered to be sufficient to give effect to this Article of the Convention. The Committee therefore hopes that, as the Government had indicated in the past, it will take the necessary measures to bring the law and regulations into conformity with national practice and with this provision of the Convention as regards the prohibition of the payment of wages in the form of liquor of high alcoholic content or of noxious drugs.

Article 14. The Committee notes the explanations provided by the Government. The Committee considers that the fact that in general there is no obligation to make out a written contract of employment (section 6 of the Act respecting individual employment contracts) strengthens the need to adopt measures to ensure that workers are informed in an appropriate and easily understandable manner, before they enter employment, of the conditions in respect of wages that will be applicable to them. The Committee therefore hopes that the Government will adopt the necessary laws or regulations to give effect to this provision of the Convention.

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With reference to its previous observations concerning the arrears and non-payment of wages for workers in certain enterprises, the Committee notes the reports of the labour inspectorate, and in particular the report for 1990. The Committee notes that, despite the efforts that have been made, there are still 89 enterprises in a situation of illegal arrears and non-payment of workers' wages, which means that 7,610 workers have not received their wages, in comparison with the 15,000 who were in this position in 1989. The Committee once again hopes that the Government will continue to make every effort to resolve this situation and requests the Government to continue supplying information in this respect.

The Committee also notes the explanations supplied concerning the concept of "pay" and "basic pay", as used to determine wage arrears. The Committee notes that the concept of "basic pay" used by Act No. 17/86 is a more limited concept than that set out in the Convention. The Committee understands that the use of this restrictive concept was due to the specific circumstances that needed to be resolved and that, as a last resort, workers could opt for the application of the normal system based on the Act respecting individual employment contracts. Nevertheless, the Committee wishes once again to state that the various provisions of the Convention are based on the broad definition set out in Article 1 of the Convention. The Committee therefore hopes that once the current situation of arrears and non-payment of wages by certain enterprises has been resolved, the provisions of the normal legal framework for employment contracts will be applied uniformly throughout the country. The Committee requests the Government to continue supplying information on the measures that have been adopted to guarantee that full effect is given to the provisions of the Convention.

The Committee requests the Government to refer to the request that is being addressed to it directly.

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With reference to its previous observations concerning the arrears and non-payment of wages for workers in certain enterprises, the Committee notes the information supplied by the Government to the Conference Committee in June 1989 and the discussion in that Committee on that subject.

The Committee notes that, as a result of the Government's endeavours and the application of Act No. 17/86, the number of workers who have not received their wages has decreased and that, when the Government supplied this information, they numbered 15,436, and that the number of enterprises owing arrears or which had not paid wages numbered 117.

The Committee hopes that the Government will continue making every effort as necessary to rapidly resolve the problem of arrears and non-payment of wages and that the next report will contain information on further progress achieved in this respect. The Committee recalls that it also addressed a request directly to the Government on other points concerning the application of this Convention and reserves the possibility of re-examining the problem as a whole during its next session on the basis of the information supplied by the Government in its report.

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The Committee refers to its observation regarding the non-payment of wages.

1. Article 2, paragraph 1, of the Convention. The Committee refers to its previous comments on section 58 of Act No. 77/77 of 29 September 1977, which lays down that provisions concerning individual working conditions are applicable to rural labour contracts except in so far as the conditions inherent in agricultural activity justify different treatment; the Committee notes the explanations supplied by the Government to the effect that the Order issuing Regulations for agricultural work provides for the adaptation considered necessary for the extension to rural work of normal provisions governing individual labour contracts. The Committee notes the provisions of Chapter VII of the above Regulations, which cover wages and their protection. The Committee notes the Government's indication in its report that Legislative Decree No. 411/87, of 31 December 1987, establishes, among other things, the new rates of minimum wages applicable to agriculture and that rural labour shall be governed by collective contracts in most of the national territory.

2. The Committee notes the information concerning dockworkers and observes that the legal provisions concerning individual labour contracts are also applicable to them, since special provisions have not been adopted, with the exception of Order No. 614-A/84 of 20 August 1984 setting out wage guarantees, within the context of social security, for dockworkers who are not members of the permanent staff of the enterprises concerned.

3. Article 4. The Committee notes the Government's indications that it will take the necessary measures to bring the legal provisions and regulations into line with national practice and this provision of the Convention with regard to the prohibition of the payment of wages in the form of liquor of high alcoholic content or of noxious drugs in accordance with this Article of the Convention. The Committee requests the Government to supply copies of the provisions adopted to this effect.

4. Article 14(a). With reference to its previous comments, the Committee notes the information supplied by the Government and points out that, in accordance with this Article, workers should be informed in an appropriate and easily understandable manner, before they enter employment and when any changes take place, of the conditions in respect of wages which are applicable to them. The Committee points out that it is not sufficient, in order to give effect to this provision, for workers to be informed that their wage cannot be lower than the guaranteed minimum wage or than the wage established in collective agreements. The Committee requests the Government to indicate the measures that have been taken or that will be taken to ensure that the workers concerned receive the information set out in paragraph (a) of this Article.

5. Article 15(c) and (d). The Committee notes the information supplied by the Government on the activities of the labour inspection services and it refers to the comments contained in its observation. Furthermore, it requests the Government to indicate the measures that have been taken to provide for the maintenance, in all appropriate cases, of records, as set out in paragraph (d) of this Article.