The Cayman Island Shipping Registry (CISR) made maritime history on March 11th with the introduction of the Merchant Shipping Act 2024 (MSA 2024), replacing rules put in place in 2021, marking a significant shift in yacht regulations. Under this new law, all Cayman Island-flagged yachts, including private and pleasure vessels, are now obligated to implement written contracts for their crew. This groundbreaking requirement stands as the first of its kind within the yachting industry.
These employment agreements must, at minimum, outline crucial details such as wage structure, method of payment, monthly wage accounting procedures, permissible wage deductions as per the Act, and entitlements regarding repatriation and medical expenses. Additionally, contracts must specify leave entitlements, notice periods, designated repatriation points, and the applicable governing law.
In alignment with the Merchant Shipping Act 2024, a Guidance Note issued on March 12th clarifies that employment contracts cannot waive any rights or obligations established by the legislation. While this mandate does not inherently grant extra entitlements to crew members, it necessitates that all entitlements be clearly defined within the contract. The CISR will not individually review contracts but will conduct surveys to ensure compliance with the new regulations.
This development signifies a crucial step forward in crew protection standards. While crew contracts were already mandatory for the majority of commercially registered yachts under the MLC Convention, this new regulation extends protections to private vessels. Moreover, within EU waters, stringent requirements mandate justifications for any individuals on board to mitigate tax and fiscal concerns.
The impact of this regulation is particularly significant for crew members working on smaller yachts and non-EU crew serving on private vessels outside of Europe. Previously, these individuals may not have had the economic leverage to insist on contractual conditions prior to employment. With this mandate, their rights and protections are solidified, marking a positive shift in industry standards.
At Rosemont Yacht Services, we have long advocated for comprehensive crew contracts and private health insurance coverage for owners of privately operated yachts. In addition to hull and P&I insurance, these measures ensure the well-being and security of both crew members and vessel owners alike.
For more information, please contact j.xanthopoulos@rosemont-yacht.com
04/2024
Source image: Delta Invictus-Jeff Brown