INT-HR-1.2.2

The Seafarer Employment Agreement: Rotation, Notice, Wages and Tax

The seafarer employment agreement is the document that decides wages, notice, leave, rotation and repatriation, and MLC sets out what it must contain. Managers should be able to help crew read a contract critically while making clear that legal and tax questions go to a professional.

Your new second stewardess emails you her offer letter before she signs. It promises a salary, mentions rotation and says the rest will be confirmed onboard. She asks if it looks alright. As HOD you should not draft her contract, and you must not give her legal advice — but you can absolutely teach her what to look for.

What an SEA Should Contain

MLC requires the agreement to include, as a minimum, matters such as:

  • Full name, date of birth and place of birth of the seafarer.
  • Name and address of the shipowner (the party that carries the obligations).
  • Place and date the agreement is entered into.
  • The capacity in which the seafarer is employed.
  • The amount of wages or the formula for calculating them.
  • Amount of paid annual leave or the formula.
  • Termination conditions, including notice on each side (notice for the shipowner must not be shorter than for the seafarer).
  • Health and social security protection benefits provided by the shipowner.
  • Entitlement to repatriation.
  • Reference to any applicable collective bargaining agreement.

The seafarer must have an opportunity to review and seek advice on the agreement before signing, and must receive a signed original.

The Clauses Crew Get Caught By

Clause The trap What to look for
Probation Very short notice during the period Length, notice, and how performance is assessed
Rotation On/off pattern described as intention, not entitlement Is the pattern contractual or discretionary?
Notice Shorter for the crew member than for the employer Balanced notice periods
Salary Gross, net, currency, and who bears bank charges Payment interval and payslip
Leave Accrual described vaguely Rate, carry-over, and payment in lieu
Confidentiality/NDA Broad, but normal on yachts Never signs away the right to report a crime, or to use the complaint procedure
Termination for cause Undefined gross misconduct A definition and a fair process

Notice and Termination in Principle

Terminate on notice, or terminate for cause. Termination for cause without notice is high-risk and should only happen with the Captain, on documented grounds, following the yacht disciplinary procedure. The details are contractual and flag-specific — check the SEA, not your memory.

Wages, Payroll, Tax and Residency

  • Wages: paid at regular intervals, with a statement showing what was paid and any deductions and exchange rates.
  • Payroll may run through a payroll bureau; this does not change who the employer is.
  • Tax and residency are personal, complex and jurisdiction-specific. Seafarer earnings deductions, days-outside rules, residency tests and social security all vary by country and change over time.

As a HOD, your only correct line on tax is: I cannot advise you on that — you need a professional adviser who specialises in seafarer tax in your country of residence. Say it every time, however confident you feel.

Onboard Notes

  • Do not sign an SEA in a rush at the passerelle with bags in hand. That is exactly when unfair terms get accepted.
  • Keep your own copy, off the yacht, backed up.
  • If a crew member asks you to interpret their contract, help them read it — do not tell them what it means legally.
  • General professional guidance only. Not legal or tax advice.

Practice questions

5 questions
recallcore

recall · core

List the minimum particulars MLC requires in a seafarer employment agreement.

recallcore

recall · core

Name four clauses in a yacht contract that most commonly catch crew out, and what to look for in each.

scenariocore

scenario · core

A new second stewardess sends you her offer letter before signing and asks if it looks alright. How do you help her without overstepping?

scenariostretch

scenario · stretch

The Captain wants to dismiss a stewardess on the spot for gross misconduct. What are the risks and what process should you push for?

oralstretch

oral · stretch

Explain the principle behind the requirement that the shipowner notice period may not be shorter than the seafarer notice period.

Independent study. xplor is not an IAMI- or PYA-accredited GUEST training provider. This course covers the ground assessed in GUEST Unit 30; it awards no GUEST unit, certificate or Certificate of Competency and does not count toward one. It is not legal or clinical advice.

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