Mandatory crew contracts - Cayman Islands
As of March 11, 2024, the Cayman Islands Ship Registry (CISR) has implemented a new requirement affecting all Cayman-flagged vessels, including private yachts and pleasure vessels. Moving forward, written contracts for all crewmembers on board are now mandatory.
This development marks a significant stride towards ensuring crew members comprehend their entitlements, with contracts serving as the baseline.
Outlined in section 90 of the recently amended Merchant Shipping Act 2024, this mandate stipulates the minimum content that these agreements must cover. It includes provisions such as wage expectations, permissible wage deductions as per the MSA 2024, repatriation and medical expense terms, leave, notice periods, and the governing law. According to CISR guidance notes, no provision under MSA 2024 can be waived through an employment agreement.
CISR will actively verify compliance among Cayman-registered vessels. Failure to adhere to these terms may lead to penalties, as articulated in the Merchant Shipping Act, where both the master and shipowner could be fined twenty thousand dollars upon summary conviction for attempting to sail in contravention of these requirements.
In support of this measure, the Professional Yachting Association (PYA) issued a statement commending CISR for its proactive approach towards enhancing crew protection. Describing it as a pioneering move in the yachting industry, the PYA believes this initiative will set a positive example and encourage other flag states to follow suit.
The PYA also highlighted the prevalent issue of many crew members on smaller vessels lacking proper employment contracts or having none at all. This new regulation aims to bridge this gap, providing crucial safeguards for crew members and fostering a fairer and more professional work environment for all.
To assist crew members in meeting these requirements, the PYA offers free downloadable contract templates on its website, along with guidance for those in need of further assistance.
