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New Protections Allow Crew to Access Compensation for Financial Loss Due to Recruitment Failures

13 December 2024 By Holly Overton

Holly is the editor of Dockwalk. She grew up racing sailboats in England before switching to the world of superyachts and moving across the pond to Fort Lauderdale.

As of December 23, 2024, the Maritime Labour Convention (MLC), 2006 will introduce key amendments to Regulation 1.4 – Recruitment and Placement, designed to strengthen protections for yacht crew during the recruitment and placement process. One of the most significant changes is the introduction of a protection system designed to safeguard seafarers from monetary loss due to recruitment or shipowner failures. 

During the Covid-19 pandemic, many seafarers traveled to ships after signing Seafarers' Employment Agreements, only to find that employment did not materialize. As a result, these seafarers were stranded and suffered significant financial losses, as they were unable to activate their insurance to receive compensation.

Under the new amendments, if a recruiter or employer fails to meet their obligations under the Seafarers' Employment Agreement, they will be required to compensate the seafarer for any resulting financial loss. This compensation system must be established through insurance or an equivalent measure.

Shipowners will need to update their procedures to ensure that seafarers are provided with the necessary information on how to make a compensation claim before or during the process of engagement. This will ensure that crew members are fully aware of their rights, particularly in the event of recruitment or placement failures.

The amendments also require recruitment services to be free of charge to the seafarer, ensuring that no fees are levied for finding employment on board ships, with the exception of costs related to personal documents such as medical certificates and passports.

This update is part of the broader 2022 MLC amendments coming into force ahead of the new year, which also include new provisions on free access to drinking water, changes to repatriation procedures, free Wi-Fi for crew, and more.

 

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