Changes to MLC Financial Security

On 18 January 2017, the Maritime Labour Convention 2006 [MLC 2006] 2014 amendments will come into force. MLC compliant vessels will be required to display certificates issued by an insurer or other financial security provider confirming that insurance or other financial security is in place for liabilities in respect to the new amendments.

The 2014 amendments relate to financial security and have been put in place to assist seafarers in the event of abandonment [Standard A2.5.2] and financial security in the event of a contractual claim involving death or long-term disability [Standard 4.2].

Seafarers shall be deemed to be abandoned under the requirements of the seafarers employment agreement when;
  • the shipowner fails to cover the cost of the seafarers repatriation
  • the shipowner has left the seafarer without the necessary maintenance and support1
  • the shipowner has otherwise unilaterally severed their ties with the seafarer, including failure to pay contractual wages for a period of at least two months.

1Necessary maintenance and support of seafarers shall include adequate food, clothing, accommodation, necessary medical care and other reasonable costs or charges arising from the abandonment.

Flag States will be required to amend and re-issue DMLC Part I to address the new MLC provisions and shipowners will be required to update DMLC Part II.

Flag States have agreed to accept standard Certificates of Entry issued by P&I Clubs therefore separate Flag State certificates will not be required.

Yacht Management Companies should apply for the certificates from the vessels P&I Club at the earliest opportunity but no later than the 18 January 2017. The certificates should be posted in a conspicuous place on board the vessel and are inspectable items for Port State Control [PSC].

For more information or advice on how to prepare your fleet, contact Shelley Dowie at Rosemont Yacht Management