PG legal offers some vital advice for seafarers looking to better understand the terms of their employment contracts …
The employment of seafarers is a crucial aspect of the superyacht industry. It is essential to be aware of the legal framework that governs such employment, as there are various issues that need to be handled with care. These issues include the choice of law that regulates the contract, social security payments, and the potential consequences of a dispute between the yacht owner and the seafarer.
The choice of law that regulates the employment contract is a crucial factor that needs to be considered. In the case of an EU seafarer, the shipowner and the seafarer are free to choose the law that will govern the contract. According to EC Regulation 593/2008 (the “Regulation”), an individual employment contract shall be governed by the law chosen by the parties. However, the choice of law may not have the effect of depriving the employee of the protection afforded to them by provisions that cannot be derogated from by agreement under the law that would have been applicable in the absence of choice.
In the absence of an alternative choice, the Regulation stipulates that the contract shall be governed by the law of the country in which or, failing that, from which the employee habitually carries out their work in the performance of the contract. If the law applicable cannot be determined pursuant to the above point, the contract shall be governed by the law of...
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