Crew Employment Laws: What Owners Must Keep in Mind

Your crew is not just a line item in your budget. They are the people who keep your ship floating, your cargo safe, and your business alive. Treat them wrong, and you’re not just a bad boss – you’re a target for fines, detentions, and lawsuits that can shut you down.

Maritime labour law has teeth now. The Maritime Labour Convention (MLC) 2006 is in force in most major flag states, and port state control inspectors know exactly what to look for. If you think you can run a crew like it’s 1980, you’ll end up with a ship under arrest and a reputation in the gutter.

Here’s what every shipowner must know about crew employment law in 2025–2026.

1. The Maritime Labour Convention (MLC) 2006 – Your New Bible

If your flag state has ratified the MLC (and most have), it is not optional. It is law. It sets minimum standards for:

• Minimum age, medical fitness, and qualifications
• Seafarer employment agreements (SEA)
• Wages, working hours, and rest periods
• Repatriation rights
• Accommodation, food, and medical care
• Health and safety protection
• Access to shore leave and complaint procedures

Port State Control (PSC) inspectors in the EU, US, Australia, Singapore, and China are trained to spot MLC violations. A serious breach can mean detention, fines, and being named-and-shamed in the Tokyo or Paris MOU reports.

2. Seafarer Employment Agreement (SEA) – One Per Crew Member

Every seafarer must have a written Seafarer Employment Agreement (SEA) signed by both the seafarer and the shipowner or a representative. Not a handshake, not a collective bargaining agreement that “covers everyone”. One agreement, one signature, one copy for the seafarer.

What must be in the SEA:

• Full name and address of the seafarer
• Shipowner’s name and address
• Place and date of agreement
• Vessel name and IMO number
• Capacity / rank on board
• Wages, including calculation method and payment intervals
• Normal working hours and rest periods
• Duration of the contract or voyage
• Entitlement to paid annual leave
• Conditions for termination and notice periods
• Repatriation rights
• Social security and benefits

Keep a copy of every signed SEA on board. PSC inspectors will ask to see them. If you can’t produce them, you’re in violation.

3. Wages, Hours, and Rest – Pay On Time, Every Time

Wages

• Pay monthly, at least. Not “when we get paid by the charterer”. Not “when the ship finishes the voyage”.
• Send a monthly wage slip showing basic pay, overtime, allowances, and deductions.
• Allotment: seafarers have the right to send a portion of wages to family back home. You must respect that and send it on time.
• Maximum one month’s wage can be held back as advance. No more.

Late payment = breach of MLC = detention risk. If you have cash flow problems, solve them before they become a detention.

Working Hours and Rest

• Maximum: 14 hours work in any 24-hour period; 72 hours in any 7-day period.
• Minimum rest: 10 hours in any 24-hour period; 77 hours in any 7-day period.
• Rest periods can be split into no more than two periods, with one at least 6 hours.
• Must have a table of shipboard working arrangements posted on board, showing watch schedules and rest periods.
• Keep records of hours of work and rest for each seafarer. PSC will audit them.

4. Repatriation – You Must Send Them Home

When a seafarer’s contract ends, or they are dismissed, or the ship is sold, or they are medically unfit – you must repatriate them at your cost.

Repatriation means:

• Transport to the place of original engagement, or a place agreed in the SEA
• Accommodation and food during the journey
• Pay of wages and any outstanding entitlements until they arrive
• Medical care if they are sick or injured

You cannot ask the seafarer to pay for repatriation, even if they quit. The only exception is if they deserted or were dismissed for serious misconduct – and even then, you must follow due process.

Flag states and port state control regularly check that crew have return tickets or the ability to get home. If you strand crew, you can be blacklisted.

5. Health, Safety, and Medical Care

Medical Fitness

• Every seafarer must hold a valid medical certificate from a recognised medical practitioner.
• Maximum validity: 2 years (1 year if under 18 or over 60, or if certificate stipulates).
• No certificate = cannot work on board. Keep a copy of each certificate on file.

Medical Stores and Equipment

• Ship must carry a medical chest suitable for the voyage, crew size, and area of operation.
• Must have a copy of the International Medical Guide for Ships or equivalent.
• Officers must be trained in medical first aid and medical care (STCW requirements).

Health and Safety Protection

• Accident prevention: risk assessments, safe working practices, PPE, training.
• Reporting: all accidents, injuries, and near-misses must be recorded.
• Right to refuse unsafe work: seafarers can refuse work they reasonably believe is likely to cause serious injury; you must investigate and not punish them for it.

6. Manning Levels and Certification

You must have enough qualified crew to operate the ship safely, as per the Minimum Safe Manning Certificate issued by the flag state.

• Do not sail undermanned. That is a breach of SOLAS and MLC.
• All officers must hold valid STCW certificates of competency for their rank and the vessel type.
• All ratings must hold valid STCW certificates for their duties.
• Keep copies of all certificates and track expiry dates. Renew early. PSC will inspect them.

7. Accommodation, Food, and Welfare

MLC sets minimum standards for living conditions:

• Accommodation: size of cabins, ventilation, heating, lighting, sanitary facilities. Must be clean and maintained.
• Food: sufficient quantity, nutritional value, quality, and variety. Must cater to religious and cultural preferences. The cook must be trained.
• Recreation: access to ship-to-shore telephone/email, reasonable internet (if available), TV, books, gym equipment.
• Shore leave: seafarers have a right to shore leave when ship is in port, subject to operational requirements and security.

PSC inspections increasingly include crew interviews. If crew say they are not getting decent food or their cabins are filthy, you will be cited.

8. Social Security and Benefits

MLC requires you to protect seafarers’ social security rights:

• Medical care, sickness benefit, unemployment benefit, old-age benefit, employment injury benefit, family benefit.
• You must contribute to a social security scheme covering seafarers, either in the flag state or in the seafarer’s home country.
• Provide evidence of contributions if requested.

Some owners try to dodge this by using “self-employed” crew or manning agencies. If the seafarer works on your ship under your direction, they are your employee under MLC. The flag state will treat it that way.

9. Complaint Procedures and Protection from Retaliation

Seafarers have the right to complain about breaches of MLC without being punished.

• You must have a written complaint procedure on board, accessible to all crew.
• Complaints can be made to the master, the shipowner, or directly to the flag state or port state control.
• You cannot fire, demote, or otherwise punish a seafarer for making a good-faith complaint.

PSC inspectors will ask crew if they know how to complain and if they fear retaliation. If crew are scared to talk, it’s a red flag.

10. Jurisdiction and Flag State vs. Coastal State

Your flag state issues your MLC certificate and conducts inspections. But port state control in the country where you call can also inspect and detain you.

• Flag state: primary responsibility for MLC compliance. Should conduct regular inspections and issue the Maritime Labour Certificate and Declaration of Maritime Labour Compliance (DMLC).
• Port state control (PSC): can inspect for MLC compliance. If they find serious deficiencies, they can detain the ship until they are fixed.

PSC is getting tougher. The 2025–2026 focus areas include wages, rest hours, and medical care. If you sail into Paris MOU, Tokyo MOU, or US Coast Guard territory with known MLC problems, you are begging for a detention.

11. Recent 2025–2026 Updates and Enforcement Trends

Here’s what’s new and what’s being enforced harder:

• Seafarer abandonment: IMO and ILO are tracking abandonment cases more closely. If you abandon crew, you can be publicly named and blacklisted. Insurance or financial security to cover abandonment is now mandatory under MLC.
• Digital certificates: Some flag states now accept digital seafarer certificates. Make sure PSC in your trading area accepts them too.
• Crew changes and travel: Post-pandemic, crew change logistics are still scrutinized. You must facilitate crew changes, not trap them on board beyond their contract.
• Mental health: Growing focus on seafarer mental health. You must provide access to mental health support and not discriminate against seafarers who seek help.