2. INTRODUCTION
PLEASE WRITE DOWN ANY QUESTIONS YOU MAY HAVE AND WE WILL BE HAPPY TO ANSWER THEM AT THE END.
THIS IS SIMPLY DUE TO THE NUMBER OF PEOPLE IN ATTENDANCE. PM

3. BIO
MARINE ACCOUNTS: SPECIALISES IN PROVIDING CREW WITH TAX & MORTGAGE ADVICE
DIRECTOR: PATRICK MAFLIN PM

4. BIO
PETER BROOKE: SPECTRUM IFA & HORIZONS Peter Brooke is a French based Financial Adviser with the Spectrum IFA Group who have created Horizons as a complete financial solution for yacht crew. PB

5. BIO MLC 2006 SPECIALIST: ROD HATCH
Background: 3 ½ years lecturing in Economics and Liberal Studies at London’s South Bank Polytechnic.
Switched to professional yachting, sail and power, since 1969, with 6 years in commercial shipping.
ILO CERTIFIED MLC TRAINER RH

6. FOCUS OF THE TALK
THE IMPACT THE RATIFICATION OF MLC 2006 WILL HAVE ON CREW.
THE IMPACT IT WILL HAVE ON YOUR EMPLOYER WILL BE DISCUSSED IN THE NEXT TALK IN MAY. RH

7. MLC 2006
‘GRANTED RIGHTS TO SEAFARERS, BUT WITH THESE CAME RESPONSIBILITIES’
Responsibilities as crew and how you can manage these recent changes. RH

8. MLC 2006
Title 4. Health protection, medical care, welfare and social security protection
Regulation 4.1 – Medical care on board ship and ashore
Regulation 4.2 – Shipowners’ liability
Regulation 4.3 – Health and safety protection and accident prevention
Regulation 4.4 – Access to shore-based welfare facilities
Regulation 4.5 – Social security RH

9. BACKGROUND: THE DECREE
France has now brought its social security laws in line with the mandatory requirements of MLC.
France will meet all of the obligations under the convention, so be prepared for further revisions/additions in the future
The entry into force is 1st July 2017 which allows just enough time for Yacht Owners and crew alike to get their house in order. RH

10. Why has France introduced MLC?
France was the first to ratify the convention.
It is believed that the Unions brought this about, trying to achieve better rights for workers on ferries in North of France.
French social security is suffering from a short fall which is another key motivator. RH

11. FRANCE FIRST.. MORE COUNTRIES WILL RATIFY THE TREATY.
IF THEY DO NOT POTENTIAL LEGAL ACTION COULD BE TAKEN BY THE ILO.
82 COUNTRIES HAVE SIGNED UP TO THE TREATY (91% GROSS TONNAGE) RH

12. 1ST JULY
FRENCH RESIDENTS MUST REGISTER WITH ENIM – EMPLOYEE(S) AND/OR EMPLOYER (YACHT).
OWNER HAS TO PUT A BOND DOWN FOR 12 MONTHS OF PAYMENTS
IF IGNORED PENALTIES OF 0.05% PER DAY OF SALARY WILL BE LEVIED RH

13. TWO ROUTES TO RESIDENCY
ROUTE 1: OECD MODEL - INDIVIDUALS
ROUTE 2: SUBSTANTIAL TIME - YACHT
MAY BACK DATE. EFFECTIVE DATE 1ST JANUARY 2017 PB

14. ROUTE 1 - INDIVIDUAL ROUTE 1: OECD MODEL (CERTAIN)
ROUTE 2: SUBSTANTIAL TIME (ATTACHED FISCAL RESIDENCE REQUIREMENTS- MORE THAN 181 DAYS)
UNCONFIRMED IF THEY WILL BACK DATE. HOWEVER EFFECTIVE DATE WAS 1ST JANUARY PB

15. YOU KNOW!! TALK ABOUT IT IF YOU ARE WORRIED
ROUTE 2 - YACHT
SUBSTANTIAL TIME
EG 181 DAYS IN FRENCH WATERS
YOU KNOW!! TALK ABOUT IT IF YOU ARE WORRIED PB

16. PRIVATE OR COMMERCIAL?
AS RATIFIED AS PART OF MLC – DOES THE DECREE APPLY TO PRIVATE YACHTS?
Unless ENIM states that a certain group or type of seafarer and employer are exempted the Decree will apply to all seafarers.
Social security in virtually all countries is determined by the “master/servant” relationship. PB

17. PRIVATE OR COMMERCIAL?
There is no precedence in French or EU law to exempt seafarers on private yachts from being regarded as employed and therefore pay social security contributions.
If such an exemption were to be given by ENIM, the case would almost certainly be challenged at the EU PB

18. CONTRACTS
The (Seafarer) agrees to be responsible for the payment of any applicable taxation, personal pension and other mandatory liabilities as may be due and agrees to indemnify the Employment Company and to keep the Employment Company indemnified on a continuing basis if the Employment Company is called upon to account to a relevant authority for such payments or for any interest and/or penalties arising in respect of such payments. To the extent such a liability arises for the Employment Company, it retains the right to set off amounts owed under this indemnity from outstanding pay owed by the Employment Company to the (Seafarer). RH

19. CONTRACTS
No pension attaches to the Captain’s employment and the Employment Company shall not be liable to contribute to any pension, bonus or retirement scheme, whether statutory or otherwise, in respect of his employment as (Seafarer). RH

20. SOCIAL SECURITY COSTS
EUROPEAN COUNCIL OF PROFESSIONAL YACHTING ARE STILL ARGUING WITH UNIONS & ITF (INTERNATIONAL TRANSPORT INDUSTRY)
EMPLOYERS CONTRIBUTION WILL BE 30 – 40%
EMPLOYEES AROUND 10% - 20%
MAXIMUM 47% TOTAL COST RH

21. IMPLEMENTATION PORT STATE CONTROL DOUANES CAPITAINERIE SHIP LOG BOOK
ENIM HAVE IMPLEMENTATION TEAM RH

22. Solutions You have until 1st July
If you are not making social security contributions in another country you will be required to do so to ENIM in France PM

23. EEA STATES & BILATERAL
EU/EEA/Switzerland and countries with which France has a bi-lateral social security agreement.
Australia and New Zealand do not have a bi-lateral agreement with France.
Dual nationals may have the right to make social security contributions in EU/EEA
Marshall Islands are already disputing this. PM

24. UK Citizens
HMRC’s Mariners questionnaire is used to determine whether you should be paying class 1, or if you are can to pay class 2
Work for or are paid by a company based in the UK?
Work on a vessel registered in the UK or the Isle of Man for an employer based in the European Economic Area (EEA) or in a country that has a reciprocal agreement with the UK? PM

25. UK Citizens
If you are not liable to pay class 1 NI, then there are 2 possible classes that you may be eligible to pay:
Class 2,Under Mariners contributions, which is £2.80 per week
Class 3, at the higher rate of £14.10 per week. PM

26. New Zealand
KiwiSaver takes minimum 3% of gross income from employees, with employers contributing the same amount on top. PM

27. Australia
A non-resident may contribute to a Superannuation Fund at 15% income as long as they have a Tax File Number (TFN). Without a quoted TFN they will be taxed at 49%. PM

28. US
The current percentages for Social Security are 6.2% paid by both the employer and the employee;
Medicare tax, is paid at a rate of 1.45% by both the employer and the employee; PM

29. ITS NOT ALL BAD MLC was created as a Bill of Rights for Seafarers
France has the best healthcare system in the world (W.H.O)
Going into Hospital costs on average €1600 per night
Ensure that you do have adequate medical, health care & pension provision, very few do. PM

30. QUESTIONS
THIS IS NOW YOUR OPPORTUNITY TO ASK US ANY QUESTIONS YOU MAY HAVE.