DID YOU KNOW THAT… from 1st July 2018, the ban on cash payment – of the salary/compensation – comes into force?

From 1st July 2018, employers and principals are obliged to pay remuneration, compensation and any related advance payment, through traceable means of payment, i.e. bank transfer with IBAN code indicated by the worker, electronic payment instruments, payment in cash at banks or post offices where the employer/principal has opened a treasury account with a mandate to pay and issue a check to be delivered to the person concerned or to a delegate.
This is a novelty introduced by Law No. 205/2017 (so-called Budget Law 2018), in order to avoid both any possible “recycling/money laundering activity” and any possible abuse against workers.
In fact, the signature affixed by the worker on the paycheck no longer constitutes proof of the payment of the due remuneration/compensation.
Employers and principals who contravene the prohibition of payment in cash incur administrative pecuniary sanctions from a minimum of 1,000 to a maximum of 5,000 Euros.
With this regard, the National Labor Inspectorate – with its note No. 4538 of 22 May 2018 – clarified that the violation is accomplished both when no traceable means of payment are used and when these are used in an elusive manner.