Best Practices for the Concentrated Inspection Campaign (CiC) on Seafarers' Wages and Employment Agreements

Overview

The Paris and Tokyo Memoranda of Understanding (MoUs) on Port State Control will jointly implement a Concentrated Inspection Campaign (CiC) from September 1 to November 30, 2024, focusing on Seafarers' Wages and Seafarers' Employment Agreements (SEA). Other MoUs may also participate in this campaign. This inspection campaign will supplement regular PSC inspections.

In this regard, SQE Marine has issued a circular providing guidance on complying with the new CiC requirements. The purpose of the inspection campaign is to determine the level of compliance of all involved parties with the requirements of the Maritime Labour Convention, 2006 (MLC, 2006), especially those related to Seafarers' Wages and Employment Agreements

A CiC questionnaire will be used to facilitate adequate preparation. According to the released information, a checklist of 10 questions covering the functionality and smooth flow of Seafarers' Wages and Employment Agreements is included below.

Ship managers, manning offices, officers, and crew onboard should be prepared to successfully address this PSC CiC. Crew departments must verify that all relevant documentation for onboard crew is available to the Master for presentation to the Port State Control Officer (PSCO). Allotments and wage payments should comply with the requirements of the Seafarer's Employment Agreement. Wage or salary payments to seafarers must be made at intervals no greater than monthly. Each crew member should have an original copy of their SEA ready for inspection by the PSCO.

CiC Questionnaire

1. Is the Seafarer's Employment Agreement (SEA) signed by both the seafarer and the shipowner or a representative of the shipowner?

2. Is the seafarer able to access information regarding their employment conditions on board?

3. Are standard forms of SEAs and parts of any applicable collective bargaining agreements, subject to Port State Control (PSC) inspections under Reg. 5.2, available in English?

4. Does the SEA include all the required elements specified in the MLC 2006 Standard?

5. Do particulars included in the seafarers’ employment agreement comply with MLC, 2006 requirements?

6. Are wage or salary payments made to the seafarer at no greater than monthly intervals?

7. Have seafarers been given a status of accounts and wages paid on at least a monthly basis?

8. Are wage or salary payments in accordance with any applicable CBA or SEA?

9. If payments made to a seafarer include deductions, are they in accordance with the MLC Convention?

10. a. Is a certificate or documentary evidence of financial security, issued by the financial security provider, available on board in the event of compensation for death and long-term disability?
    b. Is a certificate or documentary evidence of financial security, issued by the financial security provider, available on board in the event of repatriation?

Compliance Guidance: Best Practices

1. Seafarer's Employment Agreement (SEA) Signatures

   After reaching a mutually accepted employment contract with the seafarer, the company or the shipowner's crewing department must issue the original SEA signed by both parties to validate the contract. Both the Master and the seafarer must possess a valid copy and be ready to present it to the inspector upon request. Seafarers should not be allowed to board if the SEA document is invalid (unsigned) or cannot be presented. Regular checks are recommended to avoid expired contracts.

   Related PSC Codes: 01139, 01140, 01220

2. Access to Employment Conditions Information

   To ensure seafarers have access to information regarding their working conditions, they must be provided with relevant documents (hard copy or electronic records) upon signing the SEA. The Master should also maintain an electronic folder containing these documents, starting with MLC 2006. The ship management company should inform onboard seafarers of any updates to contract conditions. Free internet access onboard helps seafarers directly access relevant laws and regulations.

   Related PSC Codes: 01220, 01306, 1307, 01308, 01331, 01336, 01337, 09234, 09235, 09236, 18201, 18202, 18203, 18204, 18205, 18299

3. Availability of Standard Forms in English

   Employers drafting the SEA must use standard forms, and any parts of collective bargaining agreements included should be in English. They must provide this form to the Master and seafarers before the seafarer begins work onboard. This version must be kept in the ship's records, and all parties must understand that boarding will be prohibited if the English version of the contract is not available.

   Related PSC Codes: 01220, 01221, 01308, 01331, 01336, 01337, 09234, 09236, 18101, 18102, 18201, 18204

4. Inclusion of Required Elements in SEA

   Employers drafting the SEA must ensure that the mandatory elements [(a) to (e)] of Standard A2.1(1)/MLC 2006 are met and recorded. Seafarers must also ensure they possess an original copy of the SEA. They will not be allowed to board if they cannot present the document to the Master in a timely manner.

   Related PSC Codes: 01220, 01307, 01308, 01331, 01336, 01337, 09234, 09236, 18101, 18102, 18201, 18202, 18204, 18205, 18299

5. Compliance of SEA Details with MLC, 2006

   Employers drafting the SEA must ensure that the details [(a) to (k)] in Standard A2.1(4)/MLC 2006 are met and recorded. Seafarers must also check whether these details are included in their SEA before signing. If any mandatory elements are missing, they will not be allowed to board.

   Related PSC Codes: 01220, 01221, 01331, 01336, 01337, 09236, 18202, 18204, 18205, 18299, 18406

6. Timely Payment of Wages

   According to Standard A2.2(1)/MLC 2006, employers or ship management companies must pay seafarers' wages monthly or at intervals agreed upon in collective agreements. Seafarers must check their account transactions. In case of any discrepancies from the SEA agreements [based on Standard A2.2(1)/MLC 2006], they must follow the provisions of Guideline B2.2.2(4)(L)/MLC 2006 and file relevant complaints, especially if payments are made beyond monthly intervals.

   Related PSC Codes: 01139, 01140, 01220, 01221, 01331, 18203

7. Provision of Wage Statements

   Employers or management companies are encouraged to formally notify seafarers (e.g., an email to the ship's address with bank receipts, checks, postal checks, or money orders and/or corresponding hard copies provided by port agents) about their monthly wage payments. Seafarers should then check their accounts. In case of any discrepancies from the SEA agreements [Standard A2.2(1)/MLC 2006], they must file complaints, especially if deposits are made beyond monthly intervals.

   Related PSC Codes: 01331, 18203, 18204, 18205

8. Compliance of Wage Payments with CBA or SEA

   Employers or management companies must send seafarers bank receipts, checks, postal checks, or money orders to pay their wages (via email or through port agents) at appropriate intervals and translated into a language understood by the seafarer, to certify that payment procedures comply with the terms specified in the CBA or SEA (agreed amount, interval between payments, currency required as per Guideline B2.2.2(4)(f)/MLC 2006, etc.).

   Related PSC Codes: 01139, 01140, 01220, 01221, 01331, 18203, 18204

9. Deductions from Seafarers' Payments

   If any deductions from seafarers' payments are included in national laws/regulations or current collective agreements and do not exceed predetermined limits [Guideline B2.2.2(h)(ii)], employers or management companies must formally explain these deductions and appropriately inform the seafarers. The explanation must be recorded in the ship's records and easily accessible to all parties involved and the Port State Control Officer (PSCO).

   Related PSC Codes: 01139, 01140, 01221, 01331, 18204

10. Financial Security Certificates

    a. Compensation for Death and Long-term Disability

    Shipowners or management companies must provide all parties involved (Masters and entities responsible for handling contractual claims of seafarers) with written evidence of financial security related to compensation for seafarers' death or long-term disability. Information described in Appendix A4-I/MLC 2006 must be included in this evidence. A copy of the evidence must be kept in the ship's records in English (as well as in a language understood by the seafarers) in a conspicuous place easily accessible to seafarers [Standard A2.5.2(6)/MLC 2006]

11. b. Repatriation of Seafarers

    Shipowners or their managing companies must provide all parties involved (Masters, crew, and authorities responsible for handling seafarers’ repatriation) with a certificate or other documentary evidence of financial security covering repatriation. This must be issued by a financial security provider and comply with Regulation 2.5 and Standard A2.5.1, paragraph 9 of the MLC, 2006.

    A copy of this certificate must be:

12. In English (and in a language understood by the seafarers onboard),

13. Posted in a prominent and visible place on board that is easily accessible to seafarers, and

14. Related PSC Codes: 01221, 01331, 18204, 18404

15. Accompanied by clear instructions for seafarers on how to make a claim, including contact details of the financial security provider.