Malta has enacted the Merchant Shipping (Maritime Labour Convention) (Amendment) Rules, 2025, introducing significant reforms to enhance seafarers' rights and working conditions on Maltese-flagged vessels. These changes stem from amendments to the Merchant Shipping Act and the Maritime Labour Convention (MLC), aligning national regulations with evolving global maritime practices.
Key Amendments and Legal Reforms
Strengthened Protections for Seafarers
- Shipowners and recruitment agencies must maintain insurance or equivalent financial security to compensate seafarers for monetary losses arising from recruitment failures or employment breaches.
- Seafarers' wages are guaranteed regardless of the ship's freight earnings, ensuring stable remuneration.
- Catering services onboard vessels must meet enhanced health and safety standards by providing nutritious, varied, and hygienic meals.
- Shipowners must provide appropriately sized Personal Protective Equipment (PPE) and implement measures to safeguard against occupational hazards, such as chemical exposure and machinery-related injuries.
- Shipowners are obligated to investigate, document, and report all fatalities occurring on Maltese-flagged ships to the relevant authorities.
- Recreational amenities and social connectivity measures must be incorporated into ships to promote crew welfare.
- Shipowners must ensure reasonable access to ship-to-shore telephone communication at fair pricing, with internet access provided where feasible.
Administrative and Compliance Enhancements
- Notices to shipowners can now be transmitted via electronic mail instead of registered mail, enhancing efficiency.
- Ships must visibly display their International Maritime Organization (IMO) number in compliance with international conventions.
- Vessels under construction are now required to possess a keel identification number for regulatory tracking.
Changes to Ship Registration and Financial Security
- The maximum age for first-time ship registration in Malta has been reduced from 25 to 20 years. Ships exceeding this age limit are ineligible unless already registered under the Maltese flag before reaching the threshold.
- Initial registration and annual fees must be paid upfront before a certificate of registry is issued, ensuring compliance before official recognition.
Recognition of Ship Mortgages and Finance Charters
- Finance charter instruments are now recognised as valid and enforceable security interests under Maltese law.
- Foreign-registered ship mortgages can be recognised and registered in Malta without requiring deregistration from their original registry.
- Mortgages can now be registered on vessels still under construction, providing greater security for financial institutions and investors.
- A mortgage can secure multiple obligations, including future debts, provided a maximum amount is specified in the agreement.
- In the event of a court-ordered sale, all previous mortgages or finance instruments are automatically discharged, simplifying the transaction process.
Regulatory Oversight and Judicial Interventions
- Several functions have been transferred from the Minister to the Registrar-General, expediting ship registration and mortgage-related processes.
- Judicial authorities now have expanded authority to intervene in mortgage disputes upon request by a mortgagee.
Conclusion
These amendments represent a significant advancement in aligning Malta's maritime regulations with international standards, enhancing the country's reputation as a premier maritime jurisdiction. If you would like to discuss your situation and believe we can assist you with yacht importation, establishing a yacht ownership structure, or any other yachting and shipping services, please get in touch with us to schedule a consultation.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
