Cayman Islands issued guidance note on employment contracts for seafarers on pleasure vessels

The Maritime Authority of the Cayman Islands (MACI) has issued a guidance note regarding the employment contracts for seafarers on pleasure vessels.

This note was issued on 1 June 2024.

Background and Legal Framework: The note begins by contextualizing its directives within the framework of the Merchant Shipping Act 2024, which necessitates written employment agreements for all seafarers serving on Cayman Islands ships, including those on pleasure vessels. It stresses the importance of these agreements being signed by both the seafarer and the employer to formalize their employment relationship.

Scope and Application: It clarifies that the requirements extend to all seafarers on Cayman Islands ships, regardless of the type of vessel, and underscores additional obligations for those serving on vessels subject to the Maritime Labour Convention 2006 (MLC). Such seafarers must adhere to the specific standards outlined in the convention.

Requirements for Seafarers on Pleasure Vessels: The note elaborates on the necessity of written employment contracts for seafarers on pleasure vessels to preempt any potential disputes. It outlines the minimum elements that must be included in these contracts, ranging from wage details and deductions to repatriation entitlements and governing laws. Importantly, it emphasizes that even if certain entitlements are nonexistent (e.g., paid leave), they must still be explicitly stated in the contract.

Legal Obligations and Enforcement: It underscores that neither the seafarers' rights nor the employers' obligations under the Act can be waived or disregarded through contractual agreements. Moreover, it highlights the legal repercussions for both the master and shipowner if a pleasure vessel sails without proper employment contracts for all seafarers.

Procedures and Oversight: The note clarifies that there is no pre-approval process for employment contracts on pleasure vessels, leaving the format and content to the discretion of the employer. However, it stresses that these contracts will be subject to scrutiny during routine surveys, inspections, and dispute resolution processes to ensure compliance.

Distinction for Seafarers on MLC-Subject Ships: Lastly, it draws a distinction between the requirements outlined in the note and those applicable to seafarers serving on ships subject to the MLC, directing readers to the specific regulations governing such agreements.

For more information, please see the document below (available only to subscribers):

Employment Contracts for Seafarers on Pleasure Vessels