Singapore legislation

Section 21

of Merchant Shipping (Maritime Labour Convention) Act 2014

Section 21

Allotment notes

(1)

Subject to this section, a seafarer may, by means of an allotment note, allot directly to any person or persons nominated by the seafarer, by bank transfer or similar means, all or part of the wages to which the seafarer will become entitled in the course of employment on a ship.

(2)

A person to whom any part of a seafarer’s wages has been allotted by an allotment note issued in accordance with this section has the right to recover that part in the person’s own name and for that purpose has the same remedies as the seafarer has for the recovery of the seafarer’s wages.

(3)

In any proceedings brought by a person named in an allotment note as the person to whom any part of a seafarer’s wages has been allotted, it is presumed, unless the contrary is proved, that the seafarer is entitled to the wages specified in the note and that the allotment has not been varied or cancelled.

(4)

Unless the shipowner and the seafarer otherwise agree —

(a)

the first sum payable under an allotment note is payable not less than one month from the date on which the allotment note is issued, and subsequent sums become payable at regular intervals of not less than one month reckoned from the date when the first sum is payable; and

(b)

no sum is payable under an allotment note before the seafarer has earned any of the wages allotted by it.

(5)

A person providing services for the allotment of wages in accordance with this section may charge the seafarer a fee if —

(a)

such fee charged is reasonable; and

(b)

the exchange rate used is either —

(i)

the prevailing market rate of the bank designated by the seafarer; or

(ii)

the exchange rate set out in the collective agreement for the duration of the agreement, provided that the exchange rate is not unfavourable to the seafarer.