SMART CREW EMPLOYMENT – THE SAFETY FACTOR
Not that many years ago, employing the crew for a super yacht was a relatively easy affair however Super Yachts have now grown in number and size with corresponding substantially larger crews.
Recent legal and other changes such as the Maritime Labour Convention, Flag State Requirements and permissible working hours have altered many aspects and attitudes to employment of crew. Overall there is a much needed increase in employees’ rights and a general improvement in how crew are treated and remunerated, the way they are employed has meant that crew employment is now significantly more onerous and imposes increased responsibility and compliance by owners
These Employment changes are in line and in response to the recognition of the need for the industry to act professionally and are of similar legislative changes to the operation of the vessel by Flag States and other bodies.
The vessel operational changes have resulted in the increased role and importance of Yacht Managers and now employment is moving the same way where a professional and experienced employment manager is essential.
For both employer and employee taxation and social security obligations are increasingly becoming an issue especially within the EU with more and more cases of claims being made against employers for breaches. These Responsibilities relate both to employer and employees. Historically employees operated in a tax and social security void because of the nature of their mobile place of employment and the inability of jurisdictions to comprehend the nature of the yacht business and create a tax and social security net to meet the challenge.
How and when should pensions and other benefits be offered and arranged in such a way to be compliant but still provide benefits all those employed on yachts including to non-domiciled EU resident crew is another complicated matter. NON EU crew in many countries are not allowed to join a state system but the yacht owner is still considered responsible to have them covered. MLC has set out minimum standards for social security but we have seen that some countries insist on imposing their own state systems.
Who then oversees managing yacht crew? – MLC or the States where the yacht is based?
The consequences of doing things wrong can be significant for yacht owners and crew alike. Confusion exists and the yacht owner must find the solution. The simple answer is to use a yacht crew management company.
THE ULTIMATE CHECKLIST
If you are involved with yacht management, yacht ownership, a DPA or any other responsible role related to superyachts then it is vitally important to choose the right yacht crew management company.
The following factors should seriously be considered in selecting a yacht crew management company:
CREW EMPLOYMENT MANAGERS
Cornerstone Crew Management Limited is an independent crew employment specialist with over 10 years’ experience that only does employment and related services and, as a consequence, has no conflicts of interest.
To get in touch with Cornerstone Crew Management please contact them on the below contact details:
+ 44 (0) 20 8187 52 56
Follow them on instagram @cornerstonecrewmanagement