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In order to provide a comprehensive view of the issues relating to the application of ratified Conventions on wages, the Committee considers it appropriate to examine Conventions Nos 26 and 99 (minimum wage) and No. 95 (protection of wages) together.

Minimum wage

Articles 1 and 2 of Convention No. 26 and Article 1 of Convention No. 99. Different minimum wage rates for young workers. The Committee notes that in reply to its previous comments on this matter, the Government indicates in its report that the High Regional Court of Vienna has ruled on several occasions that collective agreements establishing lower minimum wage rates on the basis of age constitute a prohibited form of discrimination.

Protection of wages

Article 4 of Convention No. 95 and Article 2 of Convention No. 99. Partial payment of wages in kind. The Committee notes that in reply to its previous comments concerning section 21(1) of the Lower Austria Agricultural Labour Regulations which provides that the type, nature, and extent of partial payments of wages in the form of use of land and livestock are to be agreed upon between the employer and the employee, the Government indicates that land use and livestock farming are not treated as payment in kind under the collective agreement for agricultural workers in Lower Austria that is currently in force, which meant that even if such payment in kind were present in an individual case, deductions may not be made for it from the cash wage.
Article 15(b) of Convention No. 95. Wage statements. In its previous comment, the Committee requested the Government to provide information on how it ensured that detailed wage statements were issued for workers who are not covered by the collective agreements providing for the issuance of such statements. The Committee takes note with interest of the entry into force on 1 January 2016 of the Labour Law Amendment Act of 2015 that establishes the mandatory issuance of detailed wage statements for all employees.

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Article 2 of the Convention. Partial payment of minimum wages in kind. The Committee recalls its previous comment in which it noted that while the partial payment of wages in kind is often regulated by collective agreements, and the value of benefits in kind is generally based on official rates, in some provinces it may also be subject to private agreement. In its latest report, the Government once again refers to the Lower Austria Agricultural Labour Regulations, 1973, in particular sections 17 and 19 which provide for the partial payment of wages in the form of goods or housing, and indicates that with respect to benefits in kind the legal basis is always to be found in either the law or a collective agreement of the federal provinces. While noting the Government’s explanations, the Committee observes that section 21(1) of the Lower Austria Agricultural Labour Regulations provides that the type, nature and extent of partial payment of wages in the form of use of land and livestock are to be agreed upon between the employer and the employee. The Committee therefore understands that although the partial payment of wages in the form of permission to raise livestock or farm on agricultural land is expressly authorized by law, the conditions for such payment, including the monetary value of the benefits in question to be deducted from the cash wages, are left to be determined by individual agreement, which is at variance with the requirements of this Article of the Convention. The Committee wishes to refer, in this connection, to paragraph 149 of its 2003 General Survey on protection of wages in which it pointed out that the rationale behind Article 4 of Convention No. 95 (which is practically reproduced in Article 2 of Convention No. 99) is that whenever wage conditions, such as payment in kind, deductions or pay intervals, are left to be freely determined by the two parties in the employment relationship, there is a real risk of abuse, since the employee is generally in a weaker position and therefore often ready to accept the conditions offered by the employer, however, onerous or unfavourable. The Committee accordingly requests the Government to consider all appropriate steps to ensure that the national legislation does not contain any provisions which permit payments in kind in the agricultural sector by virtue of individual agreement or consent.

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Article 3(4) of the Convention. Differentiated minimum wage rates based on age. The Committee notes the comments made by the Federal Chamber of Labour (BAK) according to which pay practices consisting in paying lower wages to employees under 18 years of age than those paid to adult employees constitute inadmissible discrimination on grounds of age. The BAK refers to a number of judicial decisions which have confirmed that wage differentials based on age are discriminatory and considers that the debate which goes to the very heart of equality of treatment in employment and occupation is still topical. The BAK also criticizes the Government’s view that minors can only be employed in certain activities and should therefore be paid less, arguing that protective legislation, such as the Federal Minor and Young Worker Employment Act, cannot offer any justification for differentiated remuneration on grounds of age. In this connection, the Committee wishes to recall paragraphs 169–176 of its 1992 General Survey on minimum wages in which it pointed out that the quantity and quality of work carried out should be the decisive factors in determining the wage paid and that the reasons that may have prompted the adoption of lower minimum wage rates for groups of workers on account of their age should be regularly re-examined in the light of the principle of equal remuneration for work of equal value. The Committee requests the Government to transmit any comments it may wish to make in reply to the observations of the BAK and also to provide copies of any recent judicial decisions on this matter.

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Article 2 of the Convention. The Committee notes the Government’s indications concerning payment of wages in the form of allowances in kind such as housing, goods or produce. It notes that, while the partial payment of wages in kind is generally regulated by collective agreements, and the value of benefits in kind is based on official rates, in some provinces it may also be subject to private agreement. Recalling that the Convention provides that only national laws or regulations, collective agreements or arbitration awards may authorize the partial payment of wages in kind, and not individual agreements, the Committee requests the Government to take the necessary measures to ensure full conformity with this Article of the Convention.

In addition, the Committee notes the Government’s explanations concerning lower wage rates for agricultural workers under 18 years of age to the effect that young persons can be employed only in certain types of work, thereby necessitating different pay rates. It notes, however, that practice varies and that in some provinces the same minimum wage rate applies irrespective of the worker’s age. The Committee trusts that the Government will review from time to time the rationale and advisability of fixing differentiated wage rates on grounds of age.

Moreover, the Committee notes the statistical information contained in the Government’s report, in particular the minimum wage rates applicable in the agriculture and forestry industries, and the number of agricultural workers covered by collective agreements in the various provinces. It would appreciate if the Government would continue to supply information on these matters.

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The Committee notes the information provided by the Government in its report indicating, among other matters, that some 40,000 agricultural workers in the country are actually covered by the minimum wage rates established by collective agreement. With reference to Article 5 of the Convention and Part V of the report form, and in order to be in a position to assess the manner in which the Convention is applied in practice, the Committee would be grateful if the Government would indicate in its next report, in addition to the minimum wage rates established by collective agreements, the coverage of such agreements. Furthermore, while requesting the Government to continue providing information on the application of the Convention in both law and practice, the Committee would also be grateful if it would provide, in accordance with Article 2 of the Convention, fuller information on current practices as regards the partial payment of wages in kind in agriculture.

Noting that an important proportion of the collective agreements in force in agriculture authorize the payment to workers under 18 years of age of minimum monthly wages that are lower than those of adult workers, the Committee requests the Government to indicate whether, in accordance with paragraph 176 of its General Survey of 1992 on minimum wages, it is planned to re-examine the reasons that prompted the adoption of lower minimum wage rates for groups of workers on account of their age.

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The Committee notes the information provided in the Government's report. It requests the Government to continue to provide, in accordance with Article 5 of the Convention and point V of the report form, general information on the manner in which the Convention is applied in the agricultural sector, including: (i) the minimum wages in force; (ii) the approximate numbers of workers covered by minimum wage provisions; and (iii) the results of inspections carried out (e.g. the number of violations of minimum wage provisions, the penalties imposed, etc.).

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The Committee requests the Government to provide the information requested under points II (Article 5) and V of the report form.

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