COMPLIANCE
Seafarers Bill sails into legislation
Jeni Morris ACIPP, head of the national minimum wage (NMW) team at EY discusses the recently passed law to improve seafarers’ pay protections
T he UK government recently passed the Seafarers’ Wages Act, significantly improving pay protections and working conditions for those employed in the maritime industry. The legislation marks a significant win for thousands of seafarers who frequently navigate UK waters and became operative after receiving Royal Assent on 23 March 2023. To protect seafarers working on ships engaged in international commerce, the new law mandates that they be paid at least the NMW. This action is a part of the UK government’s ongoing efforts to close legal gaps and unfair business practices which have permitted low-wage employees to be exploited by corporations. What’s the government’s plan? The government’s nine-point plan for seafarers aims to improve working conditions, largely in reaction to P&O Ferries’ abrupt termination of nearly 800 staff members in 2022. The nine-point plan protects, boosts and reforms seafarer employment protections and welfare, ensuring seafarers are paid and treated correctly, irrespective of flag or nationality. It also closes legal loopholes which could allow employers to avoid meeting their obligations. It will do so by:
aged 23 and above). Authorities can now impose fines on non-compliant operators and refuse harbour access to those who repeatedly fail to comply. The UK’s maritime industry is world- leading, and the new legislation has been celebrated by many, safeguarding countless seafarers from future exploitation. The UK government is now working with its nearby European neighbours to create minimum wage equivalent corridors within each country’s territorial waters, to ensure the welfare and equitable compensation of seafarers. These recent actions demonstrate a commitment by the UK government to protect seafarers’ rights and welfare, both domestically and globally. n “These recent actions demonstrate a commitment by the UK government to protect seafarers’ rights and welfare, both domestically and globally”
l changing the law, so seafarers working on ships which regularly use UK ports are paid at least equivalent to the UK NMW l asking UK ports to suspend access to ferry operators that don’t pay at least the equivalent to the UK NMW l working with international partners to collaborate on seafarer protections and welfare, and exploring the creation of minimum wage corridors between our nations l asking HM Revenue and Customs to dedicate UK NMW resource to the maritime sector l allowing the Maritime and Coastguard Agency to continue its robust enforcement policies l developing a statutory code for ‘fire and rehire’ practices and failures to engage in employee consultations l acting against company leaders who break the law l improving the long-term working conditions of seafarers l encouraging more ships to operate under the UK flag. The new law requires vessel owners to demonstrate that they’re paying seafarers wages at least equal to the NMW, or the national living wage (which recently increased to £10.42 per hour for those
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| Professional in Payroll, Pensions and Reward |
Issue 90 | May 2023
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