Payment of Wages Act, 1979

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Payment of wages otherwise than in cash.

3.—(1) Notwithstanding anything contained in any other enactment, an instrument or mode of payment to which this section applies may be used by an employer to make a payment of wages to an employee to whom this section applies if either—

(a) (i) the employer, and—

(I) the employee, or

(II) some other person authorised in writing by the employee to sign on his behalf,

sign a document that specifies that mode as the mode of payment of wages to be used, and

(ii) the document indicates that the specified mode of payment will cease to be used—

(I) whenever both the employer and employee so determine, or

(II) at such time as may be specified in a notice in writing given by either of them to the other of them, or, in case the document is signed by a person authorised under this paragraph, given to or by the employer by or to that person or some other person nominated in writing for the purposes of this clause by the employee concerned, but not being less than four weeks after the day on which the notice is received,

or

(b) (i) there is between the employer or an employers' organisation or other body of persons representative of employers (of which the employer is a member) and any trade union or any other body of persons which is recognised for the purpose of collective bargaining negotiations by the employer (of which in either case the employee is a member), an agreement in writing (whether made before or after the passing of this Act) providing that that mode is to be used by the employer, or, in case the agreement is made on behalf of employers who are members of such an organisation or other body so representative, by each such employer, to pay wages to his employees who are members of either the trade union or the other body so recognised, as the case may be, and

(ii) unless there is therein provision for its periodic review, the agreement provides for its termination by either party thereto giving to the other party thereto notice in writing, and

(iii) the period of such notice is specified in the agreement and is a period of not less than four weeks,

and the mode of payment specified in a document under this subsection or in such an agreement may continue to be used until its employment is terminated either in accordance with subparagraph (ii) of paragraph (a) of this subsection or under and in accordance with the agreement, as may be appropriate.

(2) Where immediately before the passing of this Act an instrument or mode of payment to which this section applies was being used to pay wages, then for the purposes of enabling the wages to continue to be so paid, a document complying with the requirements of subsection (1) of this section shall if necessary be deemed to have been signed by the employer and the employee concerned in relation to that mode of payment, and where such a document is deemed under this subsection to have been signed, the mode of payment used immediately before the passing of this Act may continue to be used in the particular case until its employment is terminated in a manner specified in clause (I) or (II) of subsection (1) (a) (ii) of this section.

(3) This section applies to the following instruments and modes of payment, namely—

(a) a cheque, draft or other bill of exchange within the meaning of the Bills of Exchange Act, 1882 ;

(b) any document issued by a person who maintains an account with the Central Bank of Ireland or a holder of a licence which, though not such a bill of exchange, is intended to enable a person to obtain payment from that bank or that holder of the sum mentioned in the document;

(c) any draft payable on demand drawn by a holder of a licence upon himself, whether payable at the head office or some other office of his bank;

(d) any postal or money order issued by the Minister for Posts and Telegraphs or any document issued by a public officer which is intended to enable a person to obtain payment from a Minister of the Government of the sum mentioned in the document;

(e) any document issued by a person who maintains an account with a trustee savings bank which is intended to enable a person to obtain payment from the bank of the sum mentioned in the document;

(f) a credit transfer;

(g) such other instrument or mode of payment as may be specified for the time being in regulations made by the Minister after consultation with the Minister for Finance.

(4) Every regulation made under this section shall be laid before each House of the Oireachtas as soon as may be after it is made and, if a resolution annulling the regulation is passed by either such House within the next twenty-one days on which that House has sat after the regulation is laid before it, the regulation shall be annulled accordingly but without prejudice to the validity of anything previously done thereunder.

(5) In this section—

“collective bargaining negotiations” means negotiations between any employer, employers' organisation or other body of persons representative of employers on the one hand and any organisation or other body of persons representative of employees on the other hand, being negotiations which are concerned with the remuneration or other terms or conditions of employment, or the working conditions, of employees;

“licence” means a licence granted by the Central Bank of Ireland under section 9 of the Central Bank Act, 1971 ;

“trustee savings bank” means a trustee savings bank certified under the Trustee Savings Banks Acts, 1863 to 1979.