Wages: end of cash-in-hand payments from 1 October 2016

From 1 October 2016, wages can in principle not be paid cash in hand any more.

Currently, wages that are due to the workers are paid as follows:

• either in scriptural or bank money: by transfer into a bank or giro account, by cashier's cheque or postal order;
• either cash in hand.

From 1 October 2016, wages must be paid in bank money unless cash-in-hand payment is provided for under a collective bargaining agreement in the sector or by means of an implied agreement or custom in the sector.

The implied agreement or custom relating to the cash-in-hand payment of wages in the sector should be formalized and made public in accordance with the procedure and arrangements laid down by the Royal Decree of 26 December 2015. This RD also establishes the obligations imposed, in this context, upon the organizations represented in the joint body.

When such a formalization procedure is running on 1 October 2016, the employers of the sector concerned can continue to pay their workers cash in hand until the procedure is completed.

Sources: Act of 23 August 2015 amending the act of 12 April 1965 on the protection of the workers' wages as to the payment of the wages, Moniteur belge 01.10.2015; Royal Decree of 26 December 2015 laying down the arrangements to formalize and make public an implied agreement or custom in the sector relating to the cash-in-hand payment of wages, Moniteur belge 19.01.2016.

FR / NL

Author: Legal Knowledge

28/01/2016