“Is it OK for the captain to deduct money from a crew member’s salary if an item had been damaged or lost, and without any warning?”
No, this is not OK! Ever! I have heard of this happening, unfortunately, far too often. Part of owning a business or a yacht is that errors will occur, mistakes will be made and employees will sometimes cost you money. Some may say that instances such as this are “the cost of doing business,” and in most instances, I agree. However, you should be very diligent going over your contract or any other employee handbook to assure that there isn’t a policy that pertains to damage and loss. If a policy does exist, I would, personally, steer clear of such a vessel.
Many jurisdictions have labor laws that govern wage deductions. It is so important to read and truly understand your contract. If you have not agreed to such a policy, you may have the right to contest the deductions. And if the captain is deducting money from your paycheck, I would be even more concerned. I have always held firm to not receive my pay from the captain and insist that my pay come from a company that is owned by the yacht owner or a payment agency. I understand that captains and owners want their crew to remain accountable, as do I, but withholding a portion of their paycheck is simply not fair.
Due to the costly nature of yachting, you could find that an entire paycheck or more is required to replace a damaged or broken item. As a captain, we must assure those that we are hiring will remain accountable and value their position on board as well as the hard work that owner has put in to be able to afford such luxuries. If you are a crew member in such a situation and this is something that you have not agreed to, it’s best to move on. If you are a captain that has a seemingly careless crew member, then it is your duty to teach them or find an appropriate fit for the position.