When labour law meets luxury
Professor Dr Christoph Ph. Schließmann outlines the new MLC imperatives for superyacht owners…
As a superyacht owner, you’ve mastered the art of hull design, propulsion systems and bespoke interiors. Yet from December 2024 onwards, your greatest gauge of seamanship may be how well you look after those who keep your yacht in motion: the crew. The June 2022 Amendments to the Maritime Labour Convention (MLC) 2006 – binding for virtually every Flag state – and complementary national regulations introduce landmark standards in social connectivity, welfare and financial security.
Get these right and you’ll not only remain compliant but also transform crew-welfare into a potent competitive edge.
1. Social connectivity: Internet isn’t a luxury, it’s a right
What’s changed?
MLC Standard A3.1 now compels owners to provide “social connectivity” at sea – satellite internet or ship-to-shore telephony – “as far as reasonably practicable” and at “reasonable cost”.
Why it matters:
• Crew well-being: Isolation leads to fatigue, distraction and potentially dangerous navigational shortcuts toward shore-based mobile reception.
• Recruitment magnet: A yacht that guarantees reliable, free or low-cost messaging and video calls will recruit and retain talent more easily.
Owner’s action plan:
• Install a reliable VSAT system with a dedicated crew data allowance.
• Formalise service-level agreements in your safety management system (SMS), specifying uptime targets and cost-sharing.
• Brief your captain and chief engineer on routine checks to ensure uninterrupted connectivity.
2. Nourishment and hydration: Free water and balanced meals
What’s changed?
Under Standard A3.2, all crew must have unlimited, complementary access to potable water of verified quality and nutritionally balanced meals.
Why it matters:
• Health and productivity: Well-hydrated, well-fed crew are less prone to illness, boosting operational continuity and reducing relief-crew expenses.
• Regulatory spotlight: Port State Control (PSC) inspections in EU and IMO member states will check water-quality logs and meal rosters.
Owner’s action plan:
• Fit on-board water-filtration systems capable of WHO-standard output and schedule bi-monthly microbe and chemical testing.
• Contract with a seagoing nutritionist or charter-caterer to produce rotating menus that meet or exceed dietary guidelines.
• Upload all test results and menus into your digital SMS for PSC or flag-state audits.
3. Recruitment transparency: Indemnity before embarkation
What’s changed?
Guideline B1.4.2 requires that any seafarer agent or employer must deliver written notice of the crew member’s right to compensation if the agent or employer breaches recruitment or contractual duties.
Why it matters:
• Legal clarity: Crew cannot be blindsided by unexpected fees or cancelled contracts – mitigating disputes.
• Brand protection: A transparent hiring process attracts high-calibre officers who know they’re protected.
Owner’s action plan:
• Update all crewing contracts and agency MOUs to include a one-page ‘recruitment rights’ rider, signed by both parties before embarkation.
• Train your HR or crew manager to deliver and explain these rights face-to-face during recruitment.
• Archive signed acknowledgements in your SMS and crew personnel file.
4. Repatriation and abandonment: The rise of financial security certificates
What’s changed?
Regulation 2.5 and Standard A2.5.2 mandate that every vessel must carry financial security guaranteeing prompt crew repatriation and payment of wages for up to four months, regardless of owner insolvency or ship arrest.
Why it matters:
• Flag-state compliance: Most registries will withhold or revoke your MLC Certificate of Compliance without proof of financial security.
• PSCl risk: EU ports and major Flag states detain vessels lacking this cover, halting charter operations – and revenue.
Owner’s action plan:
• Select your provider carefully. IG P&I clubs remain the gold standard, but some Flags accept bank guarantees or specialised insurers.
• Validate certificate details. Ensure the document names your vessel (IMO number, call sign), lists the provider’s contact for crew claims, and explicitly covers repatriation and abandonment.
• Seamless renewal. Flag administrations and PSC inspectors expect 30-day notice of expiry. Automate reminders in your charter-management platform to avoid lapses.
• Visibility at sea. Store digital and hard-copy certificates in the crew mess and on your SMS portal, so any inspector can confirm compliance within minutes.
In superyachting, excellence isn’t measured solely by knots or interiors, but by the contentment and safety of those who bring your vessel to life.
For superyachts over 500gt, the MLC’s financial security regime steps up to a twin-layer requirement:
a. Dual coverage obligations
• Repatriation and outstanding wages (MLC Reg. 2.5 / Standard A2.5.2): You must guarantee prompt crew repatriation and payment of up to four months’ unpaid wages in case of owner insolvency or ship arrest.
• Personal injury and death (MLC Reg. 4.2 / Standard A4.2): Vessels ≥ 500gt must also provide cover for crew claims arising from injury or death.
b. Flag-state certification and PSC scrutiny
• Your Declaration of Maritime Labour Compliance (DMLC) Part I and II will only be approved once both certificates (“blue card” for wages/repatriation and “white card” for P&I) are lodged and verified by your Flag administration.
• In EU ports or other PSC-active regions, inspectors will detain any vessel missing either certificate, halting commercial operations until full compliance is demonstrated.
c. Owner action points
• Select a provider – most IG P&I clubs offer both covers; if you use a specialist insurer or bank guarantee, confirm they explicitly underwrite both repatriation/wages and injury/death.
• Display both certificates in the crew mess and upload PDF copies into your SMS for rapid inspection.
• Automate renewals: set separate reminders for each certificate’s expiry. A lapse in even one policy voids your MLC compliance.
Once a yacht crosses the 500gt threshold, you’re legally obliged to carry two distinct Financial Security Certificates. Nailing both ensures uninterrupted charter operations, smooth PSC inspections and, above all, peace of mind that your crew’s welfare – and your commercial licence – are fully protected.
5. Country-specific quick wins
• Italy (Decreto 133/2024): If no consulate is available ashore, the captain plus two witnesses may record crew changes in the log; formal paperwork follows in Italy.
• Germany and EU-Flags: Expect uniform enforcement of MLC certificates and crew-welfare logs. Liaise early with your Flag’s MLC focal point to confirm acceptable certificate formats and digital reporting channels.
Conclusion
The MLC 2022 reforms are more than a compliance checklist – they’re an invitation to redefine luxury through stewardship. By proactively investing in seamless internet, top-tier water and food systems, transparent recruitment practices and bullet-proof financial security cover, you:
• Fortify operational resilience, slashing downtime and relief-crew costs.
• Attract and retain elite talent, giving your guests a consistently flawless experience.
• Shield your yacht from costly detentions and preserve its reputation among owners, managers and charter brokers.
In superyachting, excellence isn’t measured solely by knots or interiors, but by the contentment and safety of those who bring your vessel to life. Embrace the MLC changes now – and steer your operation toward the true pinnacle of maritime luxury.
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