Ban of payment of wages in cash!

Direct debit and cheque payments create a clear paper trail, making it easier to track and verify wage payments, therefore, restricting wages from being paid in cash to the worker shall act as a safeguard for ensuring that receipt of their full, entitled salaries. However, it has yet to be determined what employers ought to do when the employee does not, or more stringently, are not able to open a bank account. As it stands, the employer may not force an employee to open a personal bank account- shall this be amended in order to adapt to the new restriction imposed?

However, on this note, such regulation may push for financial inclusion, as bank usage may be encouraged. This must inevitably be accompanied with easier access to workers and financial products that can help them manage their money better.

Since, cash payments can sometimes be used to evade taxes, mandating electronic payments, the increased level of transparency which this process may bring, shall make it harder for employers to underreport wages and avoid tax obligations. Electronic payments allows also for better legal compliance and reduction of risk of legal disputes between employers and employees.

Unfortunately, there may be an added administrative burden on small businesses during this transition, both in workload and financially. This, in addition to concerns with regard to privacy, and incurrence of bank fees for account maintenance or specific transactions.

Overall, while the legal notice shall hopefully aim to protect workers and ensure fair payment practices, it also requires careful consideration of the potential challenges and impacts on both employers and employees. This must be reassessed after the Legal Notice has been published.