Laura Kreckeler and Kirsty Porritt give insight into how changing your yacht’s status from private to commercial impacts your employment requirements. The way your crew’s employment is operated is a large factor in these considerations.
When considering the implications of reclassifying your yacht from a pleasure vessel to a commercial vessel one of the first things that will need to be reviewed is your crew’s Seafarer Employment Agreements (SEAs). The Maritime Labour Convention (MLC) doesn’t automatically apply to pleasure vessels, and there may be additional clauses required within the content of these agreements.
The main clauses that will likely need to be added are:
Other clauses you should consider, which would need to be stipulated within their SEA include:
The leave allowance given, MLC minimum is 2.5 days per month (30 days annually). There may also be flag-specific changes required due to public holidays. For example, on top of the minimum 30 days annually, if the vessel is Maltese-flagged, an additional 14 days would be due. The minimum leave entitlement for crew on board a Maltese vessel is 44 days per annum.
Working hours could be impacted; however, it would depend on what the working hours were when the vessel was operating as a pleasure vessel. When commercial, there are requirements to ensure 10 hours of rest are provided in each 24-hour period, alongside a specified minimum amount of rest over a 7-day period.
The MLC set out strict standards for crew accommodation, there are minimum room sizes, lighting/ventilation standards, bathroom requirements and access to recreation areas. These standards aren’t limited to the crew areas alone. If moving to charter use the vessels’ crew/guest areas must be clearly distinguished. Furthermore, when commercial, the galley must comply with health and safety, and there must be escape routes clearly signposted.
When employing crew on board a commercial vessel, there must be consideration taken of the age of crew and the roles they hold due to minimum age requirements.
Medical care must be provided onboard and ashore. The commercial yacht crew must be entitled to repatriation coverage and sick pay (for up to 16 weeks under MLC).
A final aspect to recognise is the additional associated costs with joining the yacht, such as obtaining applicable visas for the purpose of employment. Although you may not have had to consider these while operating a private vessel, they are important costs you could be responsible for when a yacht becomes commercial.
It’s important to note that the seafarer must only bear the cost of obtaining the initial ENG1 / Medical, Passport and Seaman’s discharge book. The costs for obtaining any subsequent medicals / ENG1’s required throughout their employment should be borne by the shipowner.
The payroll process remains the same. There are some certificates that Oceanskies will require. These include STCW qualifications and a Medical Fitness Certificate (ENG1 or ILO equivalent) for all crew in accordance with flag state minimum safe manning requirements, MLC, ISPS and STCW as applicable.
All certificates can be uploaded to our CrewMate App, and all expiry dates will be monitored.
Other certification requirements for commercial vessels consist of:
Oceanskies can assist with the transition to commercial compliance, including support with all employment documentation, approved SEA’s and a statement of compliance in accordance with MLC regulations prior to any surveys when switching to commercial operation.