Shipping: Conditions of Employment

(asked on 15th May 2019) - View Source

Question to the Department for Transport:

To ask the Secretary of State for Transport, what assessment he has made of the effect on (a) the public purse of a change in the level of national insurance receipts from seafarers, (b) the level of seafarers' take home pay and (c) seafarers' pensions as a result of P&O’s decision to move six cross-channel ferries from the UK Ship Register to the Cypriot maritime register.


Answered by
Nusrat Ghani Portrait
Nusrat Ghani
This question was answered on 22nd May 2019

The decision for P&O to reflag its vessels was a commercial matter as are contracts of employment. However in regard the legislative position;

  • Pension rights remain in place.
  • Subject to EU social security coordinating regulations, usually an employee would pay social security contributions to the country they are working in.
  • Unless the seafarer is in receipt of Seafarer Earning Deductions or for other reasons is not considered a resident of the UK then income tax will also continue to be paid to the UK on earnings from their employment as a seafarer.

Therefore unless there has been a change in the employment contract it is not expected that the take home pay will differ.

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