By virtue of this legislative amendment, among other changes, the use of cash as a means of remuneration payment is minimized, while new obligations for employers are introduced, such as the issuance and delivery of a payroll statement (payslip).

As a result of the amendment, which was passed last year (2022), the obligations of employers in relation to remuneration are broadened, whereas also being further restricted in terms of the use of cash. Specifically, the amendment specifies that the payment of the employee's remuneration is only possible either:

1. In the form of payment into a bank account or payment account of the employee's choice, or

2. Via a bank cheque in the name of the employee.

The amendment provides a few select and specific exceptions of a stringent nature to the aforementioned provision.

Additional significant provisions mentioned in this amendment, and by extension, in the said legislation, also include:

1. The obligation for the employer to issue a payroll statement (payslip) that must mandatorily describe at least the information stipulated by the relevant legislation;

2. The obligation for the employer to provide the employee with a copy of the aforementioned statement, either electronically or in print, within 5 (five) working days from the date of payment; and

3. Likewise, the employer is required to maintain an archive with these statements in accordance with the related provisions of the subject legislation.

Also noteworthy is the addition to Article 12 of the legislation, as made by this present amendment, which clarifies, based on the provisions of the General Data Protection Regulation (GDPR) and related laws, that the retention of records as provided by the subject legislation cannot exceed 6 (six) years.

Finally, the amendment brings about changes and additions related to offenses and the prescribed penalties, as well as to the provisions concerning deductions from the employee's remuneration.

Originally published September 5, 2023.

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