4. PROTECTION OF WAGES
The Protection of Wages Law of 2007 was put into force on the 21st of March 2007 and applies to all employees that receive wages. Its main purpose is to regulate the method and frequency with which wages are paid and also, to lay down the circumstances for allowable deductions.
- Frequency of payments
According to the Protection of the Wages Law, wages must be paid at least weekly or monthly, depending on the agreement between the employer and employee. Any delay beyond the specified period of payment is a violation of the aforementioned Law and the employee may submit a written complaint to the Department of Labour Relations, which undertakes the examination of the issue. In the absence of a settlement of the dispute, the employee may appeal to the Industrial Disputes Court.
- Deduction of wages
Deductions from wages are permitted only under certain conditions and always to the extent deemed necessary for the support of the employee and his family.
Deductions that can be made from wages are the following:
- deductions prescribed by laws and regulations (social insurance, inland revenue, etc.);
- deductions in accordance with regulations for retirement, provident and medical funds;
- deductions prescribed by Court rulings;
- deductions for the reimbursement of damage or loss to the employer are only authorized if they were caused intentionally or due to severe negligence on behalf of the employee
- other deductions following the employee’s consent.
- Relevant legislation