New French regulations to greatly benefit seafarers

Mathieu Croix, Partner, Le Havre
Shipping, Insurance, Yachts and Superyachts

New French regulations to greatly benefit seafarers during refits

Compositeworks (CW), a leading refit shipyard based in la Ciotat and La Rochelle in France, is very pleased to announce that the French regulations regarding seafarers’ social security have been modified in a manner that strongly benefit yachts wishing to undertake short or long term refit projects in shipyards in France.

Jean-Philippe Maslin, Senior Associate, Paris, Shipping, Trade, Yachts and Superyachts

In brief, seafarers on board or employed to work on a foreign-flagged yacht are no longer required to affiliate with ENIM (French social security entity for seafarers) for the period in which the yacht is undergoing works in a shipyard, even if the period exceeds 6 months, provided that the seafarers do not have a household on French territory (in which case they are required to affiliate).

For Ben Mennem, CEO of Compositeworks, “this decision regarding social security for crew during refit periods is an important turning point for our shipyard and we expect it will have an extremely positive impact on both our shipyards in La Ciotat and La Rochelle with a knock-on effect on our local economies. I would like to thank the ECPY, the MB92 Group team and La Ciotat local authorities who came together in a real time of need for the yachting industry in France.”

Amélie de Franssu, Avocat, Paris, Yachts and Superyachts

Annex below: Full summary in English of the Instructions edited by Ince & Co, who have been liaising with the French authorities in order to obtain further simplification of the rules applying to the affiliation of seafarers with ENIM or to a private insurance scheme.

ABOUT COMPOSITEWORKS

Ideally located in the South of France and on the Atlantic coast at La Rochelle, Compositeworks is an award-winning shipyard delivering world-class yacht refits and complex rebuilds. Since its inception in 1998, CW has delivered over 800 projects, managed refits for over 25% of the world’s megayacht fleet (over 85m) and forged an international reputation for exceptional service, technical knowledge and timely deliveries.

Compositeworks’ international team of over 120 professionals have combined yachting and refit experience of over a thousand years and are totally dedicated to fully satisfying client demands.
At the end of 2017, Compositeworks was acquired by the world-leading Group of refit shipyards MB92 Group. The Group includes two other renowned shipyards: MB92 Barcelona and Blohm & Voss La Ciotat.

For further information about Compositeworks please contact:

Henrietta Green
hgreen@hedge-hog.fr
+33 (0)6 60 70 38 21
www.compositeworks.com

ANNEX | Summary of ENIM instructions by INCE & CO:

We have just received an update from the Director of ENIM (the “Instructions”). The Instructions do not take into account all our suggestions, but do represent a step in the right direction.

Clarification on the meaning of “residency on French territory”:

Two alternative criteria can be taken into account in order to determine the length of residency “in a stable and regular manner”:

The presence of the applicant’s household in France; OR
Presence on French territory or in a French overseas department for an aggregated period of at least 6 months (over a period of 12 months).

Where a seafarer does not have a household in France, the 6 month period is now used as a criterion to determine whether such seafarer is resident in France by virtue of their presence on board a vessel as part of their employment. The length of their residency is analysed with regard to the presence of the seafarer in French territorial or internal waters.
A seafarer must be registered with ENIM or a private insurance scheme at the beginning of their employment if it is anticipated that they will stay in in French territorial or internal waters for a period of 6 months or longer. If a seafarer signs a further employment contract following a previous one with the same employer, all employment contracts must comply with article L.5551-1. On this point, further clarification seems necessary.
The 6 month period does not need to be continuous.

Special rules for vessels undergoing periods of refit/repair/other works during which the yacht is immobilised or in a shipyard

We have obtained special treatment for seafarers employed on board a yacht located in a shipyard or during periods during which the yacht is immobilised due to refit/repair or other works.
Seafarers on board or employed to work on a foreign-flagged yacht are not required to affiliate with ENIM for the period in which the yacht is undergoing such works, including while the yacht is immobilised in a shipyard, to the extent that such seafarers do not have a household on French territory (in which case they are required to affiliate).
The situation is clear for vessels in shipyards (the time spent in a shipyard is not counted). However, the precise meaning of “immobilisation” is not clear and we require further clarification on the rules applying (for example) to seafarers employed to work on yachts which are immobilised in a marine but unable to navigate. Additionally, more information is required on the meaning of “work” in this context.

Concept of “cover equivalent to article L.111-1 of the French Social Security Code”

Private insurance needs to cover all the branches of Article L.111-1 of the French Social Security Code. ENIM has indicated that this means the branches already listed in our previous notes (not covering the unemployment branch). However, the actual level of coverage for each of those branches by private insurance will not be monitored by ENIM.

Where a seafarer is covered by private insurance

It is acceptable for the costs of private insurance to be for the account of seafarers, subject to any obligations relating to the payment of certain costs incumbent on yacht-owners/employers.
We remain at your disposal for further information.

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