[UK] Details of Seafarers’ Wages Act 2023

In March 2023, The Seafarers’ Wages Act 2023 was published as part of the UK Government’s nine-point plan to improve conditions for seafarers. Watson Farley & Williams (WFW) summarises the legislation.

The Seafarers’ Wages Act 2023 is intended to incentivise ship operators whose vessels call very regularly at UK ports to pay their crew an equivalent of the UK National Minimum Wage (the NMW). Seafarers working on services which call at the same UK port at least 120 times per year may now have to be paid the NMWe (currently £10.42/hour) for work carried out in UK waters.

P&O Ferries restructured its crewing structure, making around 800 employees redundant and hitting the headlines in March 2022. The UK Government reportedly published a nine-point plan in response with the aim of improving protection for seafarers. The Seafarers’ Wages Act is part of the implementation of this plan.

UK-resident seafarers working on vessels operating in UK waters will often fall within the scope of the UK’s National Minimum Wage legislation. According to WFW, the UK Government argues that, in certain situations, this disincentivises ship operators from employing UK crew since operators can obtain cheaper labour elsewhere.

How it works

The Seafarers’ Wages Act reportedly applies to services for the carriage of persons or goods by ships.

If a UK harbour authority has reasonable grounds to believe that such a service uses, or will use, a single UK harbour at least 120 times in a 12-month period, the harbour authority can ask the operator of the service to declare that any qualifying seafarers working on the service are paid the NMW for their UK work.

Failure to operate the service consistently with the declaration will be an offence and the service operator may be fined or eventually prevented from calling at the relevant UK port if the declaration is not, or cannot, be provided.

The operative provisions of the Seafarers’ Wages Act are contingent on regulations, which have yet to be enacted.

Ensuring future compliance

WFW advises that it is important for ship operators calling regularly at UK ports to be aware of these rules and monitor their development and potential application. Operators whose services meet the threshold should review their wage structures to ensure that the NMW is paid where required, to enable a timely declaration to be made following a request.

This is one of a number of measures expected to follow the UK Government’s publication of its nine-point plan. The basic framework for the rules is in place but clarity on the exact scope and precise mechanism for implementing the broad concepts in the legislation has yet to be shared.

WFW says it anticipates these regulations in the near future and advises potentially affected groups to monitor the position closely.

Source: Watson Farley & Williams

In March 2023, The Seafarers’ Wages Act 2023 was published as part of the UK Government’s nine-point plan to improve conditions for seafarers. Watson Farley & Williams (WFW) summarises the legislation.

The Seafarers’ Wages Act 2023 is intended to incentivise ship operators whose vessels call very regularly at UK ports to pay their crew an equivalent of the UK National Minimum Wage (the NMW). Seafarers working on services which call at the same UK port at least 120 times per year may now have to be paid the NMWe (currently £10.42/hour) for work carried out in UK waters.

P&O Ferries restructured its crewing structure, making around 800 employees redundant and hitting the headlines in March 2022. The UK Government reportedly published a nine-point plan in response with the aim of improving protection for seafarers. The Seafarers’ Wages Act is part of the implementation of this plan.

UK-resident seafarers working on vessels operating in UK waters will often fall within the scope of the UK’s National Minimum Wage legislation. According to WFW, the UK Government argues that, in certain situations, this disincentivises ship operators from employing UK crew since operators can obtain cheaper labour elsewhere.

How it works

The Seafarers’ Wages Act reportedly applies to services for the carriage of persons or goods by ships.

If a UK harbour authority has reasonable grounds to believe that such a service uses, or will use, a single UK harbour at least 120 times in a 12-month period, the harbour authority can ask the operator of the service to declare that any qualifying seafarers working on the service are paid the NMW for their UK work.

Failure to operate the service consistently with the declaration will be an offence and the service operator may be fined or eventually prevented from calling at the relevant UK port if the declaration is not, or cannot, be provided.

The operative provisions of the Seafarers’ Wages Act are contingent on regulations, which have yet to be enacted.

Ensuring future compliance

WFW advises that it is important for ship operators calling regularly at UK ports to be aware of these rules and monitor their development and potential application. Operators whose services meet the threshold should review their wage structures to ensure that the NMW is paid where required, to enable a timely declaration to be made following a request.

This is one of a number of measures expected to follow the UK Government’s publication of its nine-point plan. The basic framework for the rules is in place but clarity on the exact scope and precise mechanism for implementing the broad concepts in the legislation has yet to be shared.

WFW says it anticipates these regulations in the near future and advises potentially affected groups to monitor the position closely.

Source: Watson Farley & Williams