As many operators around the world employ Ukrainian and Russian seafarers, Gard published some Frequently Asked Questions related to employment terms and also the impact of the war on P&I cover for crew claims.
#1 What if an operator has Ukrainian crewmembers on board and the crew contracts are about to expire and the seafarer wishes to extend his or her contract and remain on board?
The Ukrainian ITF affiliate – Union Marine Transport workers Trade Union of Ukraine (MTWTU), has issued a statement saying that seafarers can extend their contracts and MTWTU recommends that they “remain on board for as long as it becomes possible and safe to return to the Ukraine”.
However, operators should work with their seafarers to ensure that there is a clear agreement to extend or modify their Seafarer Employment Agreements.
#2 What if a Ukrainian seafarer wishes to terminate the contract early?
Operators who wish to accommodate the request are recommended to obtain a written acknowledgement and waiver of the contract terms including alteration of the place of repatriation.
IG Clubs has prepared a template wording for this purpose, but has not approved the wording, merely providing operators with a suggestion and they will need to seek legal advice based on the particular contract and jurisdiction involved.
#3 Can an operator repatriate a Ukrainian crewmember to a country/destination other than provided for in the Seaman’s Employment Agreement?
According to the Union Marine Transport workers Trade Union of Ukraine (MTWTU) statement “for those seafarers willing to return home upon expiry of their employment contracts/terminating their employment, flight tickets to neighboring friendly countries of Ukraine (main airports – Chisinau, Moldova and Warsaw, Poland; Hungary, Slovakia, Romania) shall be purchased by the company, as well as amounts to cover costs of transportation to Ukrainian land border/checkpoints shall be reimbursed”.
In addition, the seafarer’s request to repatriate to an alternate destination should be acknowledged with a signed waiver/release, preferably prepared with the legal advice of counsel familiar with the Seafarer’s Employment Agreement and Maritime Labour Convention (MLC) obligations, and in coordination with the representative union.
Furthermore, Gard notes that repatriation to an alternate destination under a waiver/release may raise visa/refugee issues and need to be carefully coordinated with the host country as the permissible extent of stay will vary from country to country.
If a waiver/release provides for the termination of all contractual obligations, i.e. wages, accommodation, subsistence, then Members may want to consider a certain period through which at least the accommodation and subsistence continues in the host country, perhaps with a provision for a potential extension depending on individual circumstances
#4 How does the War Risk exclusion in the P&I Rules affect cover for personal injury, and death of seafarers?
When not caused by war, cover for injury, illness and death is maintained even if the vessel is in a war zone. Operators should report injuries or deaths to both the Club and their War Risks underwriter in the event there is any doubt as to which policy responds.
#5 To what extent are the Ukrainian crewmembers covered under the P&I cover when transiting to or from the vessel?
Subject to the war risk exclusion to P&I cover, crew cover under Rule 27 remains in place for crewmembers transiting to or from the vessel, provided these periods are covered under the employment contract.
Costs covered include liability to pay hospital, medical, maintenance, funeral and other costs and expenses incurred in relation to the injury to, or illness, or death of a crewmember in accordance with the terms of the employment contract and/or applicable law.
#6 Will an operator be able to pay its Ukrainian and Russian crewmembers?
Due to Russia’s continued aggression, the United States, European Union, and the United Kingdom have all enacted countermeasures in the form of sanctions.
Operators should seek legal advice in the appropriate jurisdiction if payments to crew or next of kin are to be sent to the Ukraine or Russia.