The Supreme People's Court issued a judicial interpretation on the trial of seafarer-related disputes

Author: 国瓴律师
Published on: 2020-10-13 00:00
Read: 11

Relevant statistics show that the total number of Chinese sailors exceeds 1.4 million, ranking first in the world, and more than 140,000 seafarers are sent abroad every year alone. In the face of such a large group, how can maritime justice better protect the legitimate rights and interests of seafarers? On September 27, the Supreme People's Court published the Provisions on Several Issues Concerning the Trial of Disputes involving Seafarers, which will come into force on September 29, 2020.

There are 21 judicial interpretations, including the identification and resolution of different legal relationships involving seafarers' labor contracts, labor contracts, and intermediary contracts, the confirmation, exercise and transfer of maritime lien, the composition and legal protection of seafarers' wages and remuneration, whether seafarers' wages should be protected in the case of illegal operations, and the bearing of tort liability in the case of labor services. The relationship between industrial injury insurance treatment and civil damage compensation in the case of industrial injury, the law application of foreign labor contract and other urgent problems in maritime judicial practice have been clearly stipulated.

According to the judicial interpretation, if the crew labor contract dispute has nothing to do with the crew's boarding, working on the ship, and repatriation from the ship, that is, the dispute does not involve the issue of maritime lien, the parties shall be informed that in accordance with the provisions of the Law of the People's Republic of China on Mediation and Arbitration of Labor Disputes, the legal procedures of "arbitration before trial" and "one arbitration and two trials" shall be handled. As for the crew labor contract disputes, as well as labor disputes related to the crew's boarding, working on the ship, and repatriation from the ship, they shall still be accepted by the maritime court with jurisdiction in accordance with Article 2 of the Judicial interpretation.

With regard to the crew's request for confirmation of the maritime lien but not the arrest of the ship, the judicial interpretation stipulates that the maritime court shall support the crew's application for confirmation of the maritime lien rather than the arrest of the ship. At the same time, it is stipulated that the period of time claimed by the crew shall be limited to one year from the date on which the priority arises.

Should wages and compensation for crew members be supported in the event of illegal operation? Around this controversial issue in maritime trial practice, in order to balance the legitimate protection of the rights and interests of the crew and the increasingly severe pressure of ecological environmental protection, the judicial interpretation stipulates that the crew is illegal because of fraud and coercion, and the crew claims relevant wages and other remuneration, the crew's request should be supported. However, if the shipowner proves that the crew voluntarily and knowingly engaged in illegal operations, he shall not support the crew's request.

 

 

 

Law Release (2020) 11

Supreme People's Court

Provisions on several issues relating to the trial of Disputes involving Seafarers

(Judicial Committee of the Supreme People's Court, June 8, 2020)

Adopted at the 183rd Meeting, effective as of 29 September 2020)

     These provisions are formulated in accordance with the provisions of the Labor Contract Law of the People's Republic of China, the Maritime Law of the People's Republic of China, the Law of the People's Republic of China on Mediation and Arbitration of Labor Disputes, the Law of the People's Republic of China on Special Procedures for Maritime Proceedings and other laws, and in light of trial practice.

 

     

Article 1 Where a labor dispute between a crew member and a shipowner does not involve the crew member's boarding, working on the ship, or repatriation from the ship, and the party directly brings a lawsuit to a maritime court, the maritime court shall inform the party concerned to handle the dispute in accordance with the provisions of the Law of the People's Republic of China on Mediation and Arbitration of Labor Disputes.

Article 2 In the case of a dispute over a contract of service between the crew and the shipowner, where the parties bring a suit to the maritime court at the place where the plaintiff has his domiciliation, the place where the contract is signed, the place where the crew embarks or disembarks, or the place where the defendant has his domiciliation, the maritime court shall accept the case.

Article 3 If the crew service agency only handles relevant procedures on behalf of the crew, or only provides employment information for the crew, and does not belong to the labor dispatch situation, the crew service agency claims that it only establishes an intermediary or entrustment contract relationship with the crew, it should be supported.

Article 4 Where the shipowner conducts business in the name of the affiliated unit, the shipowner has not signed a written labor contract with the crew, the crew members employed by the shipowner are injured or injured due to work, and the crew members claim that the affiliated unit is the unit responsible for work-related injury insurance, they shall be supported. Except for the establishment of labor relations between the shipowner and the crew.

Article 5 Where a labor dispute unrelated to a crew member's boarding, working on the ship or returning from the ship is submitted to a labor dispute arbitration committee for arbitration, the arbitral tribunal shall, upon the application of the crew member, make an award on the crew member's wages and other labor remuneration, medical expenses for work-related injuries, economic compensation or compensation for the crew member before execution, the case shall be transferred to the local people's court for review.

Article 6 For maritime claims with maritime liens, where the seafarers do not, in accordance with Article 28 of the Maritime Law of the People's Republic of China, request the arrest of the ship in which the maritime lien arises, but only request confirmation that they enjoy the right of priority over the ship in which the maritime lien arises within a certain period of time, support shall be given.

The period specified in the preceding paragraph shall be limited to one year from the date on which the right of priority arises.

Article 7 For a maritime claim with maritime lien, where the crew members do not apply to restrict the continued operation of the ship, but only apply for restrictive sanctions, restricted mortgage and other preservation measures against the ship, support shall be given. If the crew members claim that such preservation measures constitute the arrest of the ship as provided for in Article 28 of the Maritime Law of the People's Republic of China, they shall not be supported.

Article 8 Seafarers who claim maritime liens for the following wages and other remuneration arising from boarding, working on or returning from the ship shall be supported:

 

(a) remuneration for normal working hours or basic wages;

(2) overtime pay for extended working hours, overtime pay for rest days and statutory holidays;

(3) Bonuses, related allowances and subsidies during the service of the ship, and wages paid in special circumstances;

(4) Fruits arising from the failure to pay the above-mentioned funds on time.

The relevant economic compensation and compensation provided for in the Labor Law of the People's Republic of China and the Labor Contract Law of the People's Republic of China, the double wages payable for failure to sign a written labor contract in accordance with the provisions of Article 82 of the Labor Contract Law of the People's Republic of China, and the fruits arising from the failure to pay the above-mentioned expenses stipulated in this paragraph on time, If the crew members claim maritime lien, they shall not support it.

Article 9 If the shipowner fails to pay the wages, other labor remuneration, repatriation expenses and social insurance expenses incurred by the crew members as a result of boarding, working on or returning from the ship in accordance with the contract, the third party shall pay all or part of the expenses to the crew members, and the crew members shall transfer the corresponding maritime claims to a third party. Where a third party requests for confirmation or exercise of the maritime lien in respect of the granted maritime claim, it shall be supported.

Article 10 If a crew member is abandoned during his overseas work or encounters other emergencies, and the owner of the ship or its financial guarantor or crew dispatch agency fails to bear the corresponding responsibilities, the crew member requests the financial guarantor or crew dispatch agency to pay the relevant expenses required for emergency rescue from the financial guarantee fee or the seafarer dispatch fund in advance, it shall be supported.

Article 11 If the wage composition of crew members covers overtime wages on working days, overtime wages on rest days and overtime wages on statutory holidays during the period of crew members boarding, working on the ship and repatriation from the ship, the parties have agreed and argue that the overtime wages of both parties should be determined according to the agreement, support shall be given. However, if the agreed standard is lower than the statutory minimum wage standard, it will not be supported.

Article 12 Under the standard working hours system, where a crew member claims overtime pay for overtime work on rest days, and the shipowner provides evidence to prove that compensatory rest arrangements have been made and overtime pay should not be paid according to legal standards, it shall be supported. Under the comprehensive calculation working hours system, where the crew claims overtime pay for the part whose total working hours exceed the total standard working hours within the comprehensive calculation cycle, it shall be supported.

Where the crew members claim overtime wages for working overtime on statutory holidays, and the shipowner argues that the overtime wages for working overtime on statutory holidays should not be paid, the shipowner's defense shall not be supported. Unless otherwise agreed by both parties.

Article 13 Where the parties have not agreed on the payment standard and method of crew's wages or other labor remuneration, or the agreement is unclear, and the parties claim that the average market standard of the same type of work, the same grade and the same period shall be supported.

Article 14 Where seafarers, under duress or fraud, use prohibited tools or methods to catch aquatic products, catch rare or endangered Marine life, or engage in other illegal operations during the prohibited fishing period or prohibited fishing areas, they shall support their claims for their wages and other labor remuneration during the period of boarding, working on the ship, and repatriation from the ship.

If the shipowner proves that the crew voluntarily and knowingly engaged in illegal operations, he shall not support the above-mentioned request of the crew.

Where the conduct of the shipowner or crew is subject to administrative penalties or suspected of criminal offences, it shall be dealt with in accordance with the relevant legal procedures.

Article 15 If the shipowner proves that the crew members have been at fault and requests that the crew members be ordered to bear the corresponding responsibility, the shipowner's defense shall be supported.

Article 16 Where a crew member suffers an industrial injury attributable to a third party and files a civil suit for civil compensation against the third party, and the third party argues that the crew member should not be liable for civil compensation on the ground that he has already received industrial injury insurance benefits, the defense of the third party shall not be supported. However, if the crew member has already received medical expenses, the crew member's claim for medical expenses shall not be supported.

Article 17 Where a labor contract between a crew member and a shipowner has a foreign-related element, a request by the parties to determine the applicable law in accordance with Article 43 of the Law of the People's Republic of China on the Application of Law on Foreign-Related Civil Relations shall be supported.

In a contract of service between the crew and the shipowner, where the parties have not chosen the applicable law, the parties claim that the laws of the place of dispatch of service, the main place of business of the shipowner and the flag State should be supported.

An intermediary or delegation agreement between a crew member and a crew member's service agency, or between a crew member's service agency and a ship's owner, where the parties have not chosen the law to apply and the parties advocate the application of the law most closely related to the contract, shall be supported.

Article 18 The shipowners mentioned in these Provisions include bareboat charterers, ship managers and ship operators.

Article 19 These Provisions shall apply to cases that have not been finalized after the implementation of these Provisions; These Provisions shall not apply to cases in which the parties apply for retrial or decide to retrial in accordance with the procedure of trial supervision.

Article 20 If the provisions previously issued by the Court are inconsistent with these Provisions, these Provisions shall prevail.

Article 21 These provisions shall come into force as of September 29, 2020.

Article 28 In trying civil cases of infringement of trade secrets, the people's court shall apply the law in place at the time of the alleged infringement. Where the alleged infringement has occurred before the amendment of the law and continues until after the amendment of the law, the amended law shall apply.

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