Circular 8/01: Payment of contractual compensation to crewmembers

TO THE MEMBERS

Dear Sirs,

PAYMENT OF CONTRACTUAL COMPENSATION TO CREWMEMBERS

As Members may be aware, the IMO Council and the Governing Body of the ILO established a Joint Expert ad hoc Working Group to assess and evaluate the extent of the potential problems relating to liability and compensation in connection with crew claims for death, personal injury and abandonment, to consider the adequacy and effectiveness of international instruments dealing with these matters, and to formulate suitable recommendations to the IMO Legal Committee and the Governing Body of the ILO.

The Working Group, of which the International Group and the International Shipping Federation (ISF) are participants, has recently met on three occasions.

In response to particular concerns expressed by the International Transport Workers’ Federation in relation to the payment of contractual entitlements, the International Group reiterated its stated policy, which is supported by the ISF, that payments due to crewmembers under contracts of employment in the event of illness, personal injury or death should be made promptly and without deduction as soon as the sums payable to such crewmembers have been ascertained. For example, in the event of the death of a crewmember, any death benefit which may be due under the terms of the contract of employment should be paid in full without delay. In the case of an injured crewmember, it will of course often not be possible to ascertain the sum payable until the extent of the injury has been finally established.

Such payments should not be made subject to the crewmember or his or her dependants executing a release foregoing any rights of action in tort, negligence or otherwise, unless the contract of employment or relevant domestic legislation provides that payment of a fixed sum shall be in full and final settlement of all claims howsoever arising.

This Circular is intended to remind Members of the Association and Correspondents of the International Group of this policy. With this in mind, the Group recommends, where relevant, the use of the Model Receipt and Release Form shown below.

Should further information be required, please contact the Managers.

Yours faithfully,

THOMAS MILLER (BERMUDA) LTD