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CESG warns superyacht crew and employers of social security risk

CESG has warned that yacht crew and employers are endangering themselves and missing out on the potential benefits of social security, by not understanding the system and favouring short term gain over long term security.

Since the introduction of MLC2006, member states have legislated for seafarers to have access to a social security system. CESG warned that, although most member states already comply with MLC2006, whereby member states have legislated for seafarers to have access to a social security system, the system relies on individuals being registered in the first place, which is where yacht crew can fall short.

One reason for this is crew favouring gross pay when working on a yacht, and finding services where companies are openly selling gross payroll employment. CESG expects this system will not last as there seems to be no legal justification for it. Therefore, yacht crew should understand the benefits of social security and not avoid paying.

Employers are also in danger if they do not properly consider social security; CESG explained that an employer has a responsibility to the owner to ensure crew employed are in accordance with legislation, because it is the owner who has to pay for any liabilities.

Who payment should go to varies, but CESG offered some insight into this; flag registration and residence of the seafarer often dictate who social security should be paid to.

Overall, CESG advised that yacht crew and employers should fully understand the situation and seek proper advice.

Learn more about your legal position by reading our guides to superyacht law and our guide to superyacht crew contacts.

For more information visit CESG.

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