Observation (CEACR) - adoptée 1998, publiée 87ème session CIT (1999)

Remuneration of workers

In its earlier observation, the Committee pointed out that paragraph 1 of Article 12 of the Convention obliges the competent authority to regulate the maximum amount of advances on wages whenever made and the reasons therefor. The Committee recalled that the present provision of section 51 of the Labour Code only regulates the manner of repayment of advances on wages, and requested the Government to take necessary measures in this regard.

The Committee notes with satisfaction that section 51 of the Labour Code, Act No. 91, has been amended in order to take account of the provisions of Article 12, paragraph 1, of the Convention. Accordingly, the new section 51(b) of the Labour Code provides as follows: "The amount of advances which may be made by the employer to the worker to encourage him to take up employment shall be laid down in advance provided that such amounts do not exceed the equivalent of the wage of the worker for six months. The employer shall not retain more than 10 per cent of the worker's wage in settlement of such advances, nor shall he charge any interest on them."