Observation (CEACR) - adopted 2001, published 90th ILC session (2002)

The Committee notes the Government’s report together with its annexes and, in particular, the detailed information concerning the application of Articles 10, 11 and 14 of the Convention. It also notes Legislative Decree No. 152 of 26 May 1997 on the employer’s obligation to inform the worker about the conditions applicable to the employment contract or relationship.

Article 4(1). Further to its earlier comments, the Committee notes the extensive explanations supplied by the Government regarding payment of wages in the form of allowances in kind. In essence, the Government reiterates its earlier statements to the effect that remuneration in kind is a type of remuneration of a residual nature which is applied in certain employment contracts (domestic, agricultural, fishing, porterage), that the cash equivalent of benefits in kind is determined by collective agreements, and that recourse to wage payment in kind is in practice partial and marginal. In addition, the Government supplies information on the increasing use of so-called "fringe benefits" such as the canteen service and the problems to which such practices have given rise, especially with respect to monetary valuation and taxation.

The Committee can only observe, however, that the inconsistency between the national legislation and the Convention to which the Committee has been drawing attention for several years still remains to the extent that section 2099 of the Civil Code does not exclude the possibility of payment of wages wholly in the form of allowances in kind. The Committee recalls that Article 4 of the Convention only permits partial payment of wages in the form of allowances in kind (paragraph 1) and that where such payment is authorized, measures should be taken to ensure that such allowances are appropriate for the personal use and benefit of the worker and his/her family (paragraph 2(a)). The Committee hopes that the Government will take whatever steps may be necessary without further delay to ensure that remuneration in kind is limited to a fraction of the wage in accordance with the clear terms of the Convention. It asks the Government to continue to supply information on this matter, by indicating concrete measures adopted to this end rather than offering lengthy statements of a general nature.