Maritime Law Focus: Legal landmarks

In their first column, they have mapped out the most common legal and compliance pitfalls, which they will explain in further detail over the next few weeks with a series of articles shining a spotlight on each.

Each segment is specific to the law of England and Wales, but many of the principles will apply in other jurisdictions.

1. Data protection and ICO registration

Marine businesses often handle a wide range of personal data, such as customer and contact details and employee/crew information.

Businesses that handle personal data must comply with the UK General Data Protection Regulation (GDPR) and register with the Information Commissioner’s Office (ICO).

Failure to register with the ICO can itself lead to a fine of up to £4,000 and the maximum fines for breaches of data protection laws can be up to £17.5 million or 4% of the business’ total annual worldwide turnover.

Activities such as vessel tracking, crew communications and dealing with customer data will have data protection considerations.

2. Shareholder agreements

If your business has multiple owners, a comprehensive shareholders agreement will outline the rights and responsibilities of each shareholder to ensure that potentially contentious issues are addressed early on and costly disputes are avoided later.

Such agreements are of particular importance when dealing with shared vessel ownership, joint ventures for marine projects or family-owned marine businesses.

3. Protecting intellectual property and confidential information

Your intellectual property, whether it’s a brand name, logo, or invention, is a valuable asset. You may take steps to protect it through trademarks, copyrights, and patents to prevent others from copying or exploiting it. You may also wish to share confidential information in the course of your dealings with others which, if disclosed, could cause harm to your business.

There are mechanisms whereby you can protect such confidential information. In the event of breach of intellectual property rights or confidentiality obligations, you may take action to enforce your rights and recover any losses you may have suffered.

4. Employment contracts

Employment contracts for seafarers should address specific maritime issues like working hours, leave policies, repatriation, and compliance with the Maritime Labour Convention.

Clear and comprehensive employment contracts are essential for managing your workforce; however you may also wish to consider other types of agreements such as consultancy or casual worker contracts.

The agreements should be clear on the type of agreement and you should be clear on your obligations to that individual, for example, whether you have any obligations regarding workplace pensions.

5. Health and safety

Ensuring a safe working environment is a legal obligation, a moral responsibility, and at sea, more paramount than in many other industries given the risk to life.

Small businesses must comply with health and safety regulations, conduct risk assessments, and provide necessary training to protect their employees.

In the event of health and safety breaches, businesses and some individuals within them may be at risk of fines or prosecution, not to mention the reputational damage that the business could suffer.

6. Consumer rights

Businesses that engage in B2C sales must comply with consumer rights legislation.

Commonly, however, we see standard terms of business for businesses who only trade on a B2B basis but who give consumer rights to the other contracting business.

This is unnecessary and can result in contracts being cancelled and financial loss.

Businesses need to be aware of consumer statutory protection but also the extent to which they can limit rights and remedies when contracting B2B.

7. Sub-contractor arrangements

If you work with sub-contractors, clear agreements outlining responsibilities, payment terms and allocation, intellectual property ownership and liability will prevent misunderstandings and disputes.

8. Terms and conditions

Generic terms of business are often unsuitable for marine businesses, often due to specific aspects of their operations and specific maritime regulations.

This often leaves marine businesses exposed to additional risks. Business must ensure that if they are trading on standard terms and conditions, they are incorporated at the outset.

In conclusion

Legal and compliance matters can be daunting, particularly for small businesses, but they are matters deserving of attention.

By addressing these issues proactively and seeking professional advice when needed, you can protect your business from legal risks and ensure its continued growth and prosperity.

Ocean Legal is a specialist law firm that provides tailored legal solutions to the commercial marine sector for a price agreed upfront. | www.ocean-legal.com | contact@ocean-legal.com

This article does not constitute legal or other professional advice. Readers should seek appropriate legal guidance before coming to any decision or either taking or refraining from taking any legal action.