Cash payment of employees prohibited since July 2018

From 1 July 2018 , as approved by the Budget Law 2018 , it will no longer be possible to pay cash salaries . Currently the cash payment of salaries, as well as all cash transactions between different subjects, is prohibited if the amount is equal to or higher than 3 thousand euros. This is the limit set by the anti-money laundering legislation in force in our country. With the new financial maneuver, employers are obliged to pay salaries with traceable means . The ratio of the norm is the contrast to the phenomenon used by some entrepreneurs: to make a pay slip higher than the amount actually paid to the employee. The new law establishes that it is forbidden to pay the wage in cash any amount, even less than or equal to 3 thousand euros .

The means of payment allowed , according to c. 910, they are:

•     bank transfer to the account identified by the IBAN code indicated by the worker;
• electronic payment instruments ;
• cash payment at the bank or post office counter where the employer has opened a treasury current account with a payment order;
• issue of a check delivered directly to the worker or his delegate in the case of proven impediment. The delegate can only be the spouse or the cohabitant and the family members in a straight line or collateral, provided they are over 16 years old.

Proof of payment does not constitute proof of payment by the worker on the paycheck , for which proof of payment is provided by the receipt of the transfer, by the photocopy of the check or by another bank or postal receipt. The obligation applies to all employment relationships referred to in art. 2094 of the Civil Code, excluding public employment and domestic work. It is applied regardless of the duration and the methods of execution, to each employment relationship originated from coordinated and continuous collaboration contracts . It applies to employment contracts established in any form by the cooperatives to its members pursuant to Law 3.04.2001, n. 142.

The new rule does not apply , however, for scholarships , for the activities of company director , or even with regard to the payment of compensation for occasional self-employment .

The Government will have to stipulate with the main trade unions of workers and employers, the Italian Banking Association (ABI) and the Poste Italiane company a convention with which to identify the tools to promote the correct application of the law. For employers and customers who violate the traceability regulations, an administrative fine will be applied from 1,000 to 5,000 euros.

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