Maritime Labour Convention June Matt Illingworth, Partner T: +44 (0)

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2 Maritime Labour Convention June 2016 Matt Illingworth, Partner T: +44 (0)

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4 Introduction Overview of the Convention Background Aims and purpose Application Structure Implementation and enforcement Amendments to the Convention Recommended Additional MLC Clauses for BIMCO Contracts

5 Overview of the Convention Background Entered into force on 20 August 2013 Fourth pillar of the international regulatory regime for shipping Ratified by 73 countries: Recent ratifications include Jordan, Slovenia, India and China Not ratified by the US Ratified by Poland in May 2012

6 Overview of the Convention Aims and Purpose To ensure comprehensive worldwide protection of the rights of the world's 1.5 million + seafarers "Seafarers' Bill of Rights" To level the playing field for countries and shipowners committed to providing decent living and working for seafarers

7 Overview of the Convention Application Applies to all ships, whether publicly or privately owned, ordinarily engaged in commercial activities Does not apply to: Ships trading exclusively in inland waters Ships engaged in fishing or similar pursuits Ships of a traditional build such as dhows and junks Warships or naval auxiliaries

8 Overview of the Convention Application cont'd A seafarer is "any person who is employed or engaged or works in any capacity on board a ship to which this Convention applies" A shipowner is "the owner of the ship or another organization or person, such as the manager, agent or bareboat charterer, who has assumed the responsibility for the operation of the ship from the owner and who, on assuming such responsibility, has agreed to take over the duties and responsibilities imposed on shipowners in accordance with this Convention, regardless of whether any other organization or persons fulfil certain of the duties or responsibilities on behalf of the shipowner"

9 Overview of the Convention Structure Articles: Establish the broad principles and obligations Regulations: Set out the principles and rights in general terms The Code: Consists of standards and guidelines which provide details as to the implementation of the principles and rights set out in the Regulations The Regulations and Code are divided into 5 titles: Title 1: Minimum requirements for seafarers to work on a ship Title 2: Conditions of employment Title 3: Accommodation, recreational facilities, food and catering Title 4: Health protection, medical care, welfare and social security protection Title 5: Compliance and enforcement

10 Overview of the Convention

11 Overview of the Convention Implementation and enforcement Responsibilities of the flag state: to establish an inspection and certification system Responsibilities of the port state: to check a ship's Maritime Labour Certificate and Declaration of Maritime Labour Compliance, and to carry out inspections of a ship where necessary Responsibilities of the labour-supplying state: to implement minimum standards in respect of the recruitment and placement of seafarers and the social security protection of seafarers

12 Amendments to the Convention Are expected to enter into force in early 2017 Amendments are to: Regulation 2.5 Repatriation Regulation 4.2 Shipowner's liability The amendments seek through the establishment of financial security systems to: Better protect seafarers in the event of their abandonment Assist with claims for compensation in the event of the seafarer's death or long-term disability due to an occupational injury, illness or hazard

13 Recommended Additional MLC Clauses for BIMCO Contracts Are designed to be supplementary clauses to the BIMCO SUPPLYTIME, SHIPMAN and CREWMAN contracts Address the issue of shipboard personnel not directly employed by shipowners by apportioning liability and responsibility for such personnel

14 BIMCO MLC Clause for SHIPMAN For the purposes of this Clause: 2009 "MLC" means the International Labour Organisation (ILO) Maritime Labour Convention (MLC 2006) and any amendment thereto or substitution thereof. "Shipowner" shall mean the party named as "shipowner" on the Maritime Labour Certificate for the Vessel. (a) Subject to Clause 3 (Authority of the Managers), the Managers shall, to the extent of their Management Services, assume the Shipowner's duties and responsibilities imposed by the MLC for the Vessel, on behalf of the Shipowner. (b) The Owners shall ensure compliance with the MLC in respect of any crew members supplied by them or on their behalf. (c) The Owners shall procure, whether by instructing the Managers under Clause 7 (Insurance Arrangements) or otherwise, insurance cover or financial security to satisfy the Shipowner s financial security obligations under the MLC.

15 BIMCO MLC Clause for CREWMAN A 2009/CREWMAN B 2009 For the purposes of this Clause: "MLC" means the International Labour Organisation (ILO) Maritime Labour Convention (MLC 2006) and any amendment thereto or substitution thereof. "Shipowner" shall mean the party named as "shipowner" on the Maritime Labour Certificate for the Vessel. (a) The Crew Managers shall, to the extent of their Crew Management Services, ensure compliance with the MLC, on behalf of the Shipowner, in respect of the Crew supplied by the Crew Managers. (b) The Owners shall procure, under Clause 8 (Insurance Policies) or otherwise, insurance cover or financial security to satisfy the Shipowner's financial security obligations under the MLC.

16 BIMCO MLC 2006 Clause for For the purposes of this Clause: SUPPLYTIME 2005 "MLC" means the International Labour Organisation (ILO) Maritime Labour Convention (MLC 2006) and any amendment thereto or substitution thereof. "Charterers' Personnel" shall mean any employees, directors, officers, servants, agents or invitees of each of the Charterers and their contractors, sub-contractors of any tier, co-venturers and customers (having a contractual relationship with the Charterers, always with respect to the job or project on which the Vessel is employed) and of each of their parent, affiliated, related and subsidiary companies, who are on board the Vessel; (a) The Owners shall provide the Charterers with a copy of Part I of the Declaration of Maritime Labour Compliance for the Vessel and the Charterers shall be responsible for ensuring compliance with the following requirements of MLC as applicable to the Vessel and as they may apply to the Charterers Personnel: (i) Minimum age; (ii) Medical certificate; (iii) Training and qualifications; (iv) Recruitment and placement; (v) Employment agreements; (vi) Wages; (vii) Hours of work and rest; (viii) Entitlement to leave; (ix) Repatriation; (x) Compensation for the Vessel s loss or foundering; (xi) Liability for sickness, injury and death; (xii) Health and safety protection and accident prevention, to the extent that these are under the Charterers control.

17 BIMCO MLC 2006 Clause for SUPPLYTIME 2005 cont'd (b) Prior to any Charterers' Personnel boarding the Vessel and upon Owners' request at any time thereafter, the Charterers shall provide written evidence, to the reasonable satisfaction of the Owners, of the Charterers compliance with their obligations under this Clause. (c) Without prejudice to Clause 14(c) (Liabilities and Indemnities Consequential Damages), the Charterers shall indemnify, protect, defend and hold harmless the Owners from any and all claims, costs, expenses, actions, proceedings, suits, demands, and liabilities whatsoever arising out of or in connection with the Charterers' failure to meet any of their obligations under this clause, and the Vessel shall remain on hire in respect of any time lost as a result thereof.

18 Any questions?

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