The Maritime Labour Convention 2006 — often abbreviated to MLC 2006 — is the international convention adopted by the International Labour Organization setting minimum rights for seafarers. In force since 2013, it has now been ratified by more than 100 states representing over 91% of world tonnage. For a private superyacht owner, it is too often perceived as a “commercial formality” that does not apply to them. That is a mistake, and here is why.
One convention, four pillars
MLC 2006 structures obligations around four main titles:
- Title 1 — Minimum conditions for working on board: age, medical certificate, training, recruitment
- Title 2 — Conditions of employment: SEA contracts, repatriation, pay, work and rest hours
- Title 3 — Accommodation, recreational facilities, food: crew spaces, ventilation, meals, drinking water
- Title 4 — Health protection, medical care, social security
- Title 5 — Compliance and enforcement: certification, flag inspection, Port State Control
For vessels of 500 GT and above making international voyages, MLC compliance is evidenced by two mandatory documents: the Maritime Labour Certificate (MLC) issued by the flag (or an approved classification society), and the Declaration of Maritime Labour Compliance (DMLC) Parts I and II, posted on board.
Does it apply to my private yacht?
The short answer is: far more often than one might think.
MLC 2006 applies mandatorily to commercial vessels of 500 GT and above. For private yachts, the rule depends on the flag:
- Cayman Islands (KY): MLC applies in full to private yachts above 500 GT. The Cayman Islands Shipping Registry issues an MLC and requires a full DMLC, with annual audit.
- Marshall Islands (MI): same regime — MLC mandatory above 500 GT, regardless of use.
- Isle of Man (IM): MLC mandatory above 500 GT, regime aligned with the Red Ensign.
- Malta: MLC mandatory for commercial charter, recommended for private yachts > 500 GT.
- France (French flag): application via the Transport Code, regime often stricter than the MLC minimum.
In practice, a private superyacht of 50 metres and above is almost systematically subject to MLC, regardless of the owner’s intention (“my yacht is private, I don’t charter”). The triggering criterion is tonnage, not use.
The practical obligations day to day
Beyond the paperwork, MLC 2006 imposes a genuine management framework:
Seafarer Employment Agreement (SEA)
Each crew member must have a written and signed contract in a language they understand, compliant with the flag’s model. The contract must specify: identity of the parties, position, remuneration, contract duration, repatriation conditions, health coverage, leave, termination conditions. A contract downloaded from the internet is not sufficient: the model must be validated by the flag.
Work and rest hours (WRH)
The STCW Code and MLC impose a minimum of 10 hours of rest per 24-hour period, and 77 hours of rest over 7 days. Rest may be divided into no more than two periods, one of which must be at least 6 hours. These hours must be recorded daily, countersigned by the crew member, and retained for the duration of the contract plus at least 2 years.
In practice: a poorly maintained WRH record is the number one non-compliance identified in MLC audits. On a superyacht in season, with a rotating crew of 15–20 people, manual record-keeping is unmanageable. A dedicated tool — we use Cursorio Manager internally — becomes indispensable.
ENG1 medical certificate
Each crew member must hold a valid medical certificate (UK ENG1 model, or equivalent depending on the flag) issued by an approved physician. Typical validity: 2 years. A seafarer without a valid ENG1 cannot embark; a seafarer whose ENG1 expires during a contract must have it renewed without interruption of service.
Traceable pay
Pay must be disbursed monthly, in convertible currency, documented by an individual pay slip. Cash payments or opaque arrangements are strictly prohibited. Pay must also cover social security contributions applicable according to the flag and the seafarer’s nationality.
Accommodation and catering
Crew cabins must meet standards for volume, ventilation, lighting and sound insulation. Catering must be provided on board by a certified cook (above certain tonnages). Drinking water and dietary variety must be guaranteed throughout the voyage.
Guaranteed repatriation
The owner must guarantee the free repatriation of any crew member at the end of the contract, in case of illness, accident or non-fault early termination. This guarantee can be backed by a P&I policy or a specific bank guarantee.
The cost of non-compliance
A yacht that does not properly maintain its MLC compliance faces several risks, in escalating order:
- Observation in flag audit — noted on file, to be corrected within 30 days.
- Minor non-conformity noted in Port State Control — report transmitted to the flag, corrective action required.
- Major non-conformity — vessel detained at port until effective correction. PSC authorities in European countries (France, Italy, Spain, United Kingdom) do not hesitate to detain a yacht whose WRH is not maintained, whose ENG1 certificates are expired, or whose crew accommodation is inadequate.
- Crew complaint — each seafarer may file a complaint with the flag or the Port State Control of the port of call. Regulations prohibit any retaliation. A complaint found to be substantiated triggers an investigation and potentially sanctions.
The cost of a 72-hour detention in Barcelona, Monaco or Saint-Tropez in high season runs into tens of thousands of euros (berth costs, wasted consumables, passenger inconvenience, reputational damage). Compare this with the cost of professional MLC management, which remains marginal on an annual superyacht budget.
The most common trap: WRH on paper
MLC 2006 is nearly 15 years old, and the near-universal weak point in audits is the WRH record. Maintained by hand, on paper, it drifts within 48 hours: omissions, retrospective corrections, late signatures, missing entries. A serious MLC auditor spots these weaknesses within thirty minutes of inspection.
Two concrete countermeasures:
- Digital tool: daily WRH entry by each crew member, master counter-signature, indelible history. We use Cursorio Manager, but several market solutions exist (Sertica, Hanseaticsoft, Triton).
- Weekly discipline: the master validates the log team by team at the end of each week, not at the end of the month. An anomaly detected 3 days later can be corrected; 3 weeks later, it is frozen.
MLC and family office ownership
For a superyacht held via a family office, MLC 2006 adds a layer of requirement: documentary traceability. The family office must be able to produce at any time, for each crew member:
- signed SEA contract, compliant with the flag;
- identity document and visa;
- valid ENG1 medical certificate;
- individual STCW certifications;
- monthly WRH register;
- pay slips;
- proof of social security contributions and health coverage.
This level of documentation is compatible with the KYC requirements the family office must already meet vis-à-vis its banks. Well maintained, it becomes an asset — poorly maintained, it generates legal and tax risk for the holding company.
In summary
MLC 2006 is not a commercial formality from which private ownership provides exemption. For any superyacht of 50 metres and above flying the KY, MI, IM, MT or FR flag, it is a daily operational obligation, the quality of whose maintenance determines:
- continuity of operation (no PSC detention);
- peace of mind for the master and crew;
- future resale of the vessel with a clean file;
- legal exposure of the owner and the holding company.
At Cursorio, MLC compliance is a core service within our crew management mandate. We maintain SEA contracts, multi-currency payroll, the WRH register, STCW and ENG1 certifications, and we support the master through flag audits. Our ISM & ISPS pre-audit also includes an MLC component to secure the passage of the official audit.