PAYMENT OF WAGES
Act on seafarers' conditions of employment, etc., sections 21-26, provisions on the payment of wages to seafarers
Faroese law does not regulate the amount of wages and allowances to be paid to a seafarer and any adjustments hereof. Normally, this will be decided by collective agreement between the two sides of industry or by an individual agreement between the seafarer and the employer.
Seafarers' wages
According to law, a seafarer is entitled to wages during the work, and it is earned on an ongoing basis though the amount of wages is normally fixed at an amount per month.
Wages normally mean basic wages and increments. To this can be added other types of allowances for special service or for especially hard and burdensome work or the like.
Information about wages and allowances must be stated in the seafarer's employment contract or through reference to a collective agreement.
Wages run from the time agreed by the parties, however not later than from the time when the seafarer starts serving on board or as otherwise stipulated in section 21 of the act.
Payment of wages and monthly statement
The seafarer's wages must be paid at intervals of no more than 1 month.
The seafarer can require the wages earned paid in cash only when the ship is in port and, while in the same country, not more frequently than every seventh day.
Cash payment can be required in the local currency used in the port where the ship is berthed and the exchange rate of the day must be used. The seafarer can also choose to have the wages paid as a special authorisation of payment by the shipping company.
According to the law, the seafarer must receive a monthly account of the wages earned including allowances, the wages paid and the rate of exchange used if the payment is made in another currency than the one agreed upon.
Transfer of seafarers' wages
According to the law, a seafarer can require his or her wages paid as monthly allotments to a specific person. However, payment cannot be required according to more than three parallel allotment notes. A seafarer can require all wages or parts hereof transferred to one or more financial institutions in the Faroe Islands.
Prohibition against set-offs in wages
Without the seafarer's consent, deductions can be made from wages only of amounts for covering liability to pay compensation claims incurred during the service, in addition to such amounts as the shipowner is ordered to withhold pursuant to statutory provisions. Deductions must be made from wages paid to the seafarer rather than from wages paid as allotments unless the seafarer decides otherwise.