According to a resolution released by the Board of Directors of the Central Bank, local banks are to reimburse all the banking fees charged since May 6.This measure is enforceable to those bank charges paid by employers in connection with direct deposits of payroll made by their employees. The amendment of the Law on Employment Contracts regulates the direct deposit of payroll is to be completely free of processing charges and maintenance fees to employees.
The Ministry of Labour yesterday enacted this modification and the Central Bank is set to do so today.
Banks are granted a 30-40 days adaptation period in order to implement this new scheme. However, since the act is in force since May 6, local banks are not supposed to charge banking fees on automatic deposit of employees' wages from that moment on. This now free-of-charge banking service is to be optional before the end of July.
Highlights
• No cash withdrawal limit per day on automatic telling machines, up to the amount of the corresponding wage. Therefore, the employees' personal account can include a higher sum than the electronically "delivered" wage. For instance, if an employee earns ARG$ 5000 per month, the bank will be able to impose processing charges and maintenance fees on his account only when cash withdrawals or debit transactions exceed that amount of money.
• The resolution will be applicable to every labor-related item payable via electronic transfer of wages to employees' bank accounts, including family allowances to be transferred by the Social Security Administration ANSES.
• When using this account, the employer will be able to make transactions via credit cards, perform balance enquiry transactions, and pay taxes and utilities bills via automatic telling machines or automatic debit or other electronic channels.
• This bank account will also process tax refunds credits, commercial refunds or health care-related expenses. These transactions will be completely free of processing charges and maintenance fees to employees.
• Employees will be entitled to appoint his/her spouse or close relatives as account holder.
• Any additional banking services -i.e. those services unrelated to a labour relationship- will be included only after the sole requirement of the account holder. Thus, banks will demand their clients to submit a written formal request accepting the terms and conditions applicable to those chargeable additional services, such as credit cards, balance enquiry statement, debit transactions and chequebooks.
By Pablo Wende for Ambito.com
Translated by Jimena Gibert
Source: http://www.ambito.com/noticia.asp?id=529086
