We bring you two developments in relation to the employment of seafarers. Firstly, following negotiations in Geneva, the International Chamber of Shipping and the International Transport Workers’ Federation have welcomed the introduction of a new minimum wage for seafarers. Read more here.
Secondly, significant amendments have been made to the UK Government’s draft Employment Rights Bill, originally published in October 2024, with one area of reform being the employment rights of seafarers relating to collective redundancies and the strengthening of mandatory employment standards at sea. Read more here.
Agreement Reached on New Global Minimum Wage for Seafarers
Following negotiations in Geneva, the International Chamber of Shipping and the International Transport Workers’ Federation have welcomed the introduction of a new minimum wage for seafarers. The updated wage structure will be submitted for approval by the International Labour Organisation’s Governing Body in November, reflecting the outcome of a more robust global collective bargaining framework.
The minimum monthly basic wage for an able seafarer is set to increase to US$690 as of January 1 2026, rising to US$704 by 1 January 2027 and US$715 by the start of 2028. The negotiation therefore results in an increase of more than 6% compared with the previous three-year agreement of 2022. Read more here.
Employment Rights Bill
In October 2024, the UK Government published the Employment Rights Bill (the Bill) which contains significant reforms to employment rights. One area of reform is in relation to the employment rights of seafarers as set out below. The Bill is currently making its way through the parliamentary process and significant amendments have been made. It is not yet clear which of the proposals will come into effect or the time scale that will apply as some amendments will require secondary regulations to implement the details. The proposals for change are as follows:
Changes related to collective redundancies: The Bill introduces new provisions relating to collective redundancies for seafarers. Currently, under section 193A Trade Union & Labour Relations (Consolidation) Act 1992 (TULRCA), employers are required to notify the competent authority of the state where the vessel is registered instead of the UK authority, where collective redundancies are proposed affecting employees who are members of a seagoing vessel which is registered at a port outside Great Britain. Under the proposed amendment to section 193A of TULRCA, employers will be required to notify the UK Secretary of State in addition to the existing competent authority regarding proposed collective redundancies which fall within the threshold for collective consultation. Section 285(1) of TULRCA provides that this duty to notify the Secretary of State does not apply to employment where under the contract of employment the employee works outside Great Britain. However, TULRCA currently establishes that, for the purposes of collective consultation, employment on board a ship registered in the United Kingdom shall be treated as employment where a person ordinarily works in Great Britain. A proposed amendment will extend this to those who work on a “GB linked ship”. A GB linked ship is defined as a ship which operates between a place in Great Britain and another place in the United Kingdom (i.e., a domestic service) or a ship which forms part of a service that enters a harbour in Great Britain on at least 120 occasions in the period of 12 months ending with the day when the redundancy proposal in question is settled by the employer, or, if the service has been provided for less than 12 months before that date, ships providing the service entered a harbour in Great Britain on at least 10 occasions in each month for which the service has been provided. This will apply irrespective of the vessels’ flag. In respect of both of these definitions, a service will not fall within that definition if it is for the purpose of leisure or recreation or is provided by a fishing vessel. Failure to notify the Secretary of State may result in an unlimited fine. These changes provide greater protection and support for seafarers during redundancy situations.
Strengthening mandatory employment standards at sea: New provisions will amend the Seafarers’ Wages Act 2023 to the Seafarers’ (Wages and Working Conditions) Act 2023. The definition of a “ship” for the purposes of that Act will include ships registered outside the UK. The new Schedule to be included will provide for the introduction of national minimum wage equivalence for non-qualifying seafarers (being seafarers who would not otherwise qualify for the national minimum wage). It will also provide that safe working regulations may be introduced to specify conditions relating to periods of work and for the purposes of managing and mitigating risks arising from fatigue. In addition, safe working declarations may be requested by harbour authorities where they have reasonable grounds to believe that ships providing a service to which the safe working regulations apply will enter, or have entered, its harbour at least 120 times in a relevant year, or any higher number specified in the safe working regulations in relation to specified services. Further amendments were included in January 2025 which amend the Merchant Shipping Act 1995 to give the Secretary of State powers to make regulations giving effect to international maritime conventions including the Maritime Labour Convention and the Work in Fishing Convention. In the roadmap published by the government in July on implementation of the Employment Rights Bill, the indication is that the commencement of the Mandatory Seafarers Charter is expected to be in December 2026.
As noted above the final version of the Bill is yet to be produced. Norton Rose Fulbright are monitoring the Bill and will publish articles containing updates on any further amendments.
