Marine Advisory: 27/2020 - Non-payment of wages in accordance with Seafarers’ Employment Agreements (SEA)

Subject: Non-payment of wages in accordance with Seafarers’ Employment Agreements (SEA)

Dear Shipowners/Operators/SRPS/Auditors/Inspectors/Seafarers:

The purpose of this Advisory is to inform Shipowners/Operators, Seafarers’ Recruitment and Placement Services (SRPS), Auditors, Inspectors and Seafarers that the Administration has recently investigated cases wherein seafarers were not paid in accordance with their seafarers’ employment agreements (SEA) signed by the seafarer and the shipowner or the shipowners’ authorized representative as a result of a second SEA concluded with non-authorized entities.

Recently several vessels have been detained by Port State Control authorities as a result of seafarers not being paid in full in accordance with the SEA concluded with the shipowner and signed by the authorized representative of the shipowner. In all of these cases, the authorized representative of the shipowner was the SRPS, who sub-contracted the recruitment of seafarers resident in another Country to another entity. Unknown to the ship-owner, a second SEA was concluded and signed with that entity, possibly under duress, providing for wages below the SEA concluded with the shipowner.

While the shipowner ensured that the correct amounts were transmitted to the authorized SRPS for remittance at monthly intervals to the persons(s) nominated by the seafarers, the amounts actually remitted were in accordance with the second SEA. During this period, the seafarers were provided with a monthly account of the payments due and the amounts paid in accordance with SEA concluded with the shipowner.

It is recommended, that shipowners, operators conduct a review of the manning agreements they have with the SRPS to verify that where there is a provision to sub-contract recruitment of seafarers, that there is no second SEA concluded and where practicable, verify the correct amounts remitted to person(s) nominated by the seafarers to ensure compliance with MLC, 2006.

Please contact RegsandStandards@liscr.com if you have any questions.

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