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64 provisions
Title and introductory text
2024 No. 1015
MERCHANT SHIPPING
TERMS AND CONDITIONS OF EMPLOYMENT
HARBOURS, DOCKS, PIERS AND FERRIES
The Seafarers’ Wages Regulations 2024
Made
7th October 2024
Laid before Parliament
10th October 2024
Coming into force
1st December 2024
The Secretary of State makes these Regulations in exercise of the powers conferred by sections 3(2), (5) and (6)(a), 4(6) to (8)(a), 9(1), (4) and (5), 10(4), 11(7), 17(2) and 18(3) of the Seafarers (Wages and Working Conditions) Act 2023 (“the Act”).
In accordance with section 4(9) of the Act, the Secretary of State in making these Regulations has sought to secure that a non-qualifying seafarer is for the purposes of section 4 remunerated at a rate equal to the national minimum wage equivalent only if their remuneration is in all the circumstances broadly equivalent to the remuneration they would receive if they qualified for the national minimum wage.
(1) These Regulations may be cited as the Seafarers’ Wages Regulations 2024 and come into force on 1st December 2024.
(2) These Regulations extend to England and Wales, Scotland and Northern Ireland.
In these Regulations—
“the Act” means the Seafarers (Wages and Working Conditions) Act 2023;
“basic hours” has the meaning given in regulation 35(8);
“basic payments” has the meaning given in regulation 20;
“basic rate” means the hourly rate determined in accordance with regulation 18;
“basic reductions” has the meaning given in regulation 20;
“basic remuneration” has the meaning given in regulation 18;
“calculation year” has the meaning given in regulation 36;
“employer”, in relation to a seafarer, means the person by whom the seafarer is (or, where the employment has ceased, was) employed;
“employment”, in relation to a seafarer, means employment under the seafarer’s contract and “employed” is to be construed accordingly;
“excess hours” has the meaning given in regulation 40(3);
“hours” includes a fraction of an hour;
“hours of UK work” has the meaning given in regulation 19;
“national minimum wage equivalent” means the applicable hourly rate specified in regulation 14;
“pay reference period” has the meaning given in regulation 13;
“performance bonus” has the meaning given in regulation 35(9);
“refusal of access notification” means a communication from a harbour authority to an operator containing the information required by regulation 12(6);
“relevant service” means a service to which the Act applies;
“salaried hours work” has the meaning given in regulation 35;
“salary premium” has the meaning given in regulation 35(10);
“seafarer” means a non-qualifying seafarer within the meaning of the Act;
“surcharge notification” means a communication from a harbour authority to an operator containing the information required by regulation 6(5);
“time work” has the meaning given in regulation 44;
“total hours of work” has the meaning given in regulation 18;
“total reductions” has the meaning given in regulation 26(1);
“UK additional payments” has the meaning given in regulation 21;
“UK additional rate” means any hourly rate which is specific to a seafarer’s hours of UK work determined in accordance with regulation 19;
“UK additional reductions” has the meaning given in regulation 21;
“UK additional remuneration” has the meaning given in regulation 19;
“unmeasured work” has the meaning given in regulation 50.
(1) Where there is more than one harbour authority in respect of a harbour, the harbour authority in respect of the harbour for the purposes of the Act and these Regulations is the harbour authority responsible for the berth at which ships providing the relevant service dock.
(2) In this regulation, “berth” means any berth, dock, wharf, quay, pier, jetty or similar structure at which sea-going ships can ship or unship goods or embark or disembark passengers.
(1) A harbour authority which is required to request an equivalence declaration must do so within the period of 28 days beginning with the day specified in paragraph (2).
(2) For the purposes of paragraph (1), the day specified is whichever is the later of—
(a) the day on which the harbour authority has reasonable grounds to believe that ships providing a relevant service will enter, or have entered, its harbour on at least 120 occasions during a relevant year;
(b) the first day of the relevant year to which the request relates.
(3) A request for an equivalence declaration must include the date on which it is sent.
(4) An operator providing a declaration in response to a request by a harbour authority to provide an equivalence declaration must provide that declaration—
(a) within the period of three months beginning with the date of the request from the harbour authority, and
(b) in the form prescribed in Schedule 1.
(1) A harbour authority which imposes a surcharge must send a surcharge notification to the operator of the service within the period of 14 days beginning with the day on which the duty to impose the surcharge arises.
(2) A surcharge notification must be in writing and may be given—
(a) by delivering or sending it to or leaving it at—
(i) the operator’s registered office,
(ii) the operator’s principal place of business, or
(iii) another address specified by the operator as their address for service, or
(b) where paragraph (3) applies, by sending the surcharge notification to the operator using email.
(3) This paragraph applies where an operator has notified the harbour authority of an email address at which the operator will accept notifications under these Regulations.
(4) Where a surcharge notification is to be given to an operator whose address cannot be ascertained after reasonable inquiry it may be given by handing it to the master of a ship operating the service.
(5) A surcharge notification must include—
(a) the amount of each surcharge to which the notification relates,
(b) the date on which the duty to impose each surcharge arose,
(c) how payment may be made to the harbour authority,
(d) the payment deadline, and
(e) the date on which the surcharge notification is sent.
(6) The harbour authority must send a copy of the surcharge notification to the Secretary of State within the period of 7 days beginning with the day on which the surcharge notification is given to the operator.
(7) The copy of the surcharge notification must be sent to the Secretary of State by email, to the email address specified for that purpose on the gov.uk website.
(8) In this regulation, “payment deadline” means the last day within the period specified in regulation 8 (period for payment of surcharges).
An operator must pay each surcharge to which the surcharge notification relates within the period of 60 days beginning with the day after the day on which the surcharge notification was given.
(1) The Secretary of State must publish on the gov.uk website the information in paragraph (2).
(2) For each surcharge which is notified to the Secretary of State the information referred to in paragraph (1) is—
(a) the amount of the surcharge,
(b) the date on which the duty to impose the surcharge arose,
(c) the harbour authority which imposed the surcharge, and
(d) the operator of the service on which it was imposed.
(3) The information must be published within a reasonable time after it is notified to the Secretary of State.
(1) Paragraph (2) applies to an objection by an operator who is an interested party and on whom a surcharge has been imposed.
(2) An objection under this paragraph must be received by the Secretary of State within the period of 28 days beginning with the day on which the operator receives the surcharge notification.
(3) Paragraph (4) applies to an objection to a surcharge by an interested party other than the operator on whom the surcharge has been imposed.
(4) An objection under this paragraph must be received by the Secretary of State within the period of 28 days beginning with the day on which information about the surcharge is published by the Secretary of State pursuant to regulation 9 (publication of surcharges).
(5) The Secretary of State may extend the time limits in this regulation if satisfied that there are good reasons for doing so.
11 Notification of non-payment of surcharge to the Secretary of State
(1) Paragraph (2) applies where—
(a) a surcharge has been imposed by a harbour authority,
(b) a surcharge notification relating to the surcharge has been sent to the operator of the service, and
(c) the surcharge has not been paid in the manner required by the surcharge notification pursuant to regulation 6(5)(c) (notification of the imposition of a surcharge).
(2) The harbour authority must send a notification containing the information in paragraph (4) to the Secretary of State within the period of 5 days beginning with the day 50 days after the day on which the surcharge notification was given.
(3) A notification under this regulation must be sent by email, to the email address specified for that purpose on the gov.uk website.
(4) A notification must include—
(a) the name of the operator to whom the surcharge notification has been given;
(b) the date and time from which ships providing the service to which the surcharge relates are to be refused access to the harbour until the surcharge is paid.
(1) Paragraph (2) applies where—
(a) a surcharge has been imposed by a harbour authority,
(b) a surcharge notification relating to the surcharge has been given to the operator of the service, and
(c) the surcharge has not been paid in the manner required by the surcharge notification pursuant to regulation 6(5)(c) (notification of the imposition of a surcharge).
(2) The harbour authority must send a refusal of access notification to the operator within the period of 5 days beginning with the day 45 days after the day on which the surcharge notification was given.
(3) A refusal of access notification must be in writing and may be given—
(a) by delivering or sending it to or leaving it at—
(i) the operator’s registered office,
(ii) the operator’s principal place of business, or
(iii) another address specified by the operator as their address for service, or
(b) where paragraph (4) applies, by sending the refusal of access notification to the operator using email.
(4) This paragraph applies where an operator has notified the harbour authority of an email address at which the operator will accept notifications under these Regulations.
(5) Where a refusal of access notification is to be given to an operator whose address cannot be ascertained after reasonable inquiry it may be given by handing it to the master of a ship operating the service.
(6) A refusal of access notification must include—
(a) the date of the relevant surcharge notification,
(b) the amount of each surcharge in the relevant surcharge notification which has not been paid, and
(c) the date and time from which ships providing the service to which the surcharges relate are to be refused access to the harbour until the surcharges are paid.
(7) In this regulation, “relevant surcharge notification” means the surcharge notification referred to in paragraph (1)(b).
(1) The hourly rate for the purposes of the national minimum wage equivalent is—
(a) £12.71 for a seafarer who is aged 21 years or over;
(b) £10.85 for a seafarer who is aged 18 years or over (but is not yet aged 21 years);
(c) £8.00 for a seafarer who is aged under 18 years;
(d) £8.00 for a seafarer to whom the apprenticeship rate applies, as determined in accordance with regulation 16 (determining whether the apprenticeship rate applies).
(2) If the rate in paragraph (1)(d) applies to a seafarer, the rates in paragraph (1)(a) to (c) of this regulation do not apply to that seafarer.
15 Determining the applicable national minimum wage equivalent
The national minimum wage equivalent applicable to a seafarer as respects their hours of UK work in a pay reference period is the rate which would apply to the seafarer on the first day of that period.
16 Determining whether the apprenticeship rate applies
(1) The apprenticeship rate applies to a seafarer—
(a) who is employed under a contract of apprenticeship, apprenticeship agreement (within the meaning of section 32 of the Apprenticeships, Skills, Children and Learning Act 2009) or approved English apprenticeship agreement (within the meaning of section A1(3) of that Act), or is treated as employed under a contract of apprenticeship, and
(b) who is within the first 12 months after the commencement of that employment or under 19 years of age.
(2) A seafarer is treated as employed under a contract of apprenticeship if the seafarer is engaged—
(a) in England, under Government arrangements known as Apprenticeships (Intermediate, Advanced, Higher and Degree Levels),
(b) in Scotland, under Government arrangements known as Modern Apprenticeships,
(c) in Northern Ireland, under Government arrangements known as Apprenticeships NI, or
(d) in Wales, under Government arrangements known as Foundation Apprenticeships, Apprenticeships, Higher Apprenticeships or Degree Apprenticeships.
(3) In paragraph (1)(b), a seafarer does not commence employment with an employer where that seafarer has previously been employed by another employer and the continuity of employment is preserved between the two employments by or under any enactment.
(4) In this regulation, “Government arrangements” means—
(a) in England, arrangements made by the Secretary of State under section 2 of the Employment and Training Act 1973 or section 17B of the Jobseekers Act 1995;
(b) in Wales, arrangements made by the Secretary of State or the Welsh Ministers under section 2 of the Employment and Training Act 1973, by the Secretary of State under section 17B of the Jobseekers Act 1995 or by the Commission for Tertiary Education and Research under sections 89(3), 93, 95 or 97 of the Tertiary Education and Research (Wales) Act 2022 or section 65 of the Further and Higher Education Act 1992;
(c) in Scotland, arrangements made by the Secretary of State or the Scottish Ministers under section 2 of the Employment and Training Act 1973 or by Scottish Enterprise or Highlands and Islands Enterprise under section 2 of the Enterprise and New Towns (Scotland) Act 1990;
(d) in Northern Ireland, arrangements made by the Department for Employment and Learning under section 1 of the Employment and Training Act (Northern Ireland) 1950.
17 Calculation to determine whether the national minimum wage equivalent has been paid
In order to determine whether a seafarer has been paid at a rate which is at least equal to the national minimum wage equivalent, the seafarer’s remuneration for their hours of UK work is to be calculated by adding the basic rate, and the UK additional rate, applicable to them.
A seafarer’s basic rate in a payment reference period is determined by the calculation—
basic remuneration / total hours of work
where—
“basic remuneration” is the basic remuneration in the pay reference period determined in accordance with Part 5;
“total hours of work” are the total hours of work in the pay reference period determined in accordance with Chapters 4 to 7 of Part 6.
19 Calculation to determine the UK additional rate
Any UK additional rate in a payment reference period is determined by the calculation—
UK additional remuneration / hours of UK work
where—
“UK additional remuneration” is any UK additional remuneration in the pay reference period determined in accordance with Part 5;
“hours of UK work” are any hours of UK work in the pay reference period determined in accordance with Chapters 4 and 8 of Part 6.
In regulation 18, the basic remuneration in the pay reference period is determined by the calculation—
basic payments - basic reductions
where—
“basic payments” are the payments from the employer to the seafarer which form part of a seafarer’s basic remuneration as respects the pay reference period, determined in accordance with Chapter 2;
“basic reductions” are the reductions which reduce a seafarer’s basic remuneration determined in accordance with Chapter 3.
21 UK additional remuneration in a pay reference period
In regulation 19, any UK additional remuneration in the pay reference period is determined by the calculation—
UK additional payments - UK additional reductions
where—
“UK additional payments” are any payments from the employer to the seafarer as respects the pay reference period which form part of a seafarer’s UK additional remuneration, determined in accordance with Chapter 2;
“UK additional reductions” are any reductions which reduce the seafarer’s additional remuneration, determined in accordance with Chapter 3.
(1) The following payments, except as provided in regulation 25, are to be treated as payments by the employer to the seafarer as respects the pay reference period—
(a) subject to paragraph (2), payments paid by the employer to the seafarer in the pay reference period;
(b) payments paid by the employer to the seafarer in the following pay reference period as respects the pay reference period (whether as respects work or not);
(c) where a seafarer’s contract terminates then as respects the seafarer’s final pay reference period, payments paid by the employer to the seafarer in the period of a month beginning with the day after that on which the contract was terminated.
(2) Payments paid by the employer to the seafarer in the pay reference period as respects a previous pay reference period are not to be treated as payments as respects the pay reference period in which they are paid.
23 Payments which form part of a seafarer’s UK additional remuneration
Payments which fall within regulation 22 form part of a seafarer’s UK additional remuneration where they are—
(a) only attributable to hours of UK work, and
(b) would not be paid to the seafarer if the hours of work were not hours of UK work.
24 Payments which form part of a seafarer’s basic remuneration
Payments which fall within regulation 22 which do not form part of a seafarer’s UK additional remuneration form part of a seafarer’s basic remuneration.
25 Payments and benefits in kind which do not form part of a seafarer’s remuneration
The following payments and benefits in kind do not form part of a seafarer’s basic or UK additional remuneration—
(a) payments by way of an advance under an agreement for a loan or by way of an advance of wages;
(b) payment of a pension, allowance or gratuity in connection with the seafarer’s retirement or as compensation for loss of office;
(c) payment of an award made by a court or tribunal or a payment to settle proceedings which have been or might be brought before a court or tribunal, other than the payment of an amount due under the seafarer’s contract;
(d) payments referable to the seafarer’s redundancy;
(e) payment of an award for a suggestion made by the seafarer under a scheme established by the employer or operator to reward suggestions made by seafarers;
(f) benefits in kind provided to the seafarer, whether or not a monetary value is attached to the benefit;
(g) a voucher, stamp or similar document capable of being exchanged for money, goods or services (or for any combination of those things);
(h) payments as respects hours which are not, or not treated as—
(i) hours of time work in accordance with regulation 49, or
(ii) hours of unmeasured work in accordance with regulation 55;
(i) payments, in the context of salaried hours work, attributable to the hours to be reduced under regulation 39 (absences from work) whether directly or by reason of regulation 42(3) (where the seafarer works excess hours);
(j) payments paid by the employer to the seafarer as respects hours of time work or unmeasured work in the pay reference period—
(i) if there is a lower rate per hour which could be payable under the contract as respects that work (including if the work was done at a different time or in different circumstances), and
(ii) to the extent that such payments exceed the lowest rate;
(k) payments paid by the employer to the seafarer attributable to a particular aspect of the working arrangements or to working or personal circumstances that are not consolidated into the seafarer’s standard pay unless—
(i) the payments fall within regulation 23 (UK additional remuneration);
(ii) the payments are attributable to the performance of the seafarer in carrying out the work;
(l) payments paid by the employer or operator to the seafarer as respects the seafarer’s expenditure in connection with the employment;
(m) payments paid by the employer or operator to the seafarer representing amounts paid by customers by way of a service charge, tip, gratuity or cover charge;
(n) payments paid by the employer or operator to the seafarer as respects travelling expenses that are allowed as deductions from earnings under section 338 of the Income Tax (Earnings and Pensions) Act 2003;
(o) payment of a salary premium, unless the payment falls within regulation 23 (UK additional remuneration).
26 Determining the total reductions which reduce a seafarer’s remuneration
(1) ”Total reductions” are the total reductions in the pay reference period, determined by adding together all of the payments or deductions treated as reductions in that period in accordance with this Chapter.
(2) To the extent that any payment or deduction is required to be treated as a reduction by virtue of more than one provision in this Chapter, it is to be counted only once.
27 Determining the reductions which reduce a seafarer’s basic remuneration
In regulation 20, the reductions which reduce the seafarer’s basic remuneration in the pay reference period are determined by the calculation—
total reductions x (total hours of work / (total hours of work + hours of UK work)).
28 Determining the reductions which reduce a seafarer’s UK additional remuneration
In regulation 21, the reductions which reduce the seafarer’s UK additional remuneration in the pay reference period are determined by the calculation—
total reductions x (hours of UK work / (total hours of work + hours of UK work)).
29 Deductions or payments for the employer’s or operator’s own use and benefit
(1) Deductions made by the employer in the pay reference period, or payments due from the seafarer to the employer or operator in the pay reference period, for the employer’s or operator’s own use and benefit are treated as reductions except as specified in paragraph (2).
(2) The following deductions and payments are not treated as reductions—
(a) deductions, or payments, in respect of the seafarer’s conduct, or any other event, where the seafarer (whether together with another seafarer or not) is contractually liable;
(b) deductions, or payments, on account of an advance under an agreement for a loan or an advance of wages;
(c) deductions, or payments, as respects an accidental overpayment of wages made by the employer to the seafarer;
(d) deductions, or payments, as respects the purchase by the seafarer of shares, other securities or share options, or of a share in a partnership;
(e) payments as respects the purchase by the seafarer of goods or services from the employer or operator, unless—
(i) the purchase is made in order to comply with a requirement imposed by the employer or operator in connection with the seafarer’s employment, and
(ii) the payment is not met, or not intended to be met, by a payment paid to the seafarer by the employer or operator.
30 Deductions or payments as respects a seafarer’s expenditure or living accommodation
(1) The following deductions are to be treated as reductions if the deduction is made by the employer in the pay reference period—
(a) deductions as respects the seafarer’s expenditure in connection with the employment;
(b) deductions as respects the provision of living accommodation by the employer or operator to the seafarer.
(2) The following payments are to be treated as reductions if the payment is paid by or due from the seafarer in the pay reference period—
(a) payments to the employer as respects the seafarer’s expenditure in connection with the employment;
(b) payments to the employer as respects the provision of living accommodation by the employer or operator to the seafarer;
(c) payments to any other person on account of such expenditure or provision.
(3) The payments referred to in paragraph (2) are not to be treated as reductions if the expenditure is met, or intended to be met, by a payment paid to the seafarer by the employer or operator.
31 Total hours of work for determining the basic rate
In regulation 18 (calculation to determine the basic rate), the total hours of work in the pay reference period are the hours worked or treated as worked by the seafarer in the pay reference period as determined—
(a) for salaried hours work, in accordance with Chapter 5;
(b) for time work, in accordance with Chapter 6;
(c) for unmeasured work, in accordance with Chapter 7.
32 Hours of work for determining the UK additional rate
In regulation 19 (calculation to determine the UK additional rate), the hours of UK work in the pay reference period are the hours worked or treated as worked by the seafarer in the pay reference period as determined in accordance with Chapter 8.
(1) In this Part, references to “training” include hours when the seafarer is—
(a) attending at a place other than the seafarer’s normal place of work, when the seafarer would otherwise be working, for the purpose of receiving training that has been approved by the employer or operator;
(b) travelling, when the seafarer would otherwise be working, between a place of work and a place where the seafarer receives such training;
(c) receiving such training at the seafarer’s normal place of work.
(2) In paragraph (1), hours when the seafarer would “otherwise be working” include any hours when the seafarer is attending at a place or travelling where it is uncertain whether the seafarer would otherwise be working because the seafarer’s hours of work vary either as to their length or in respect of the time at which they are performed.
In this Part, references to “travelling” include hours when the seafarer is—
(a) in the course of a journey by a mode of transport or is making a journey on foot;
(b) waiting at a place of departure to begin a journey by a mode of transport;
(c) waiting at a place of departure for a journey to re-commence either by the same or another mode of transport, except for any time the seafarer spends taking a rest break;
(d) waiting at the end of a journey for the purpose of carrying out duties, or to receive training, except for any time the seafarer spends taking a rest break.
(1) “Salaried hours work” is work which is done under a seafarer’s contract and which meets the conditions in paragraphs (2) to (5) of this regulation.
(2) The first condition is that the seafarer is entitled under their contract to be paid—
(a) an annual salary, or
(b) an annual salary and one or both of—
(i) a performance bonus, and
(ii) a salary premium.
(3) The second condition is that the seafarer is entitled under their contract to be paid that salary or salary and performance bonus or salary premium (or all three) in respect of their basic hours (as defined in paragraph (8)).
(4) The third condition is that the seafarer is not entitled under their contract to a payment in respect of the basic hours other than—
(a) an annual salary, or
(b) an annual salary and one or both of—
(i) a performance bonus, and
(ii) a salary premium.
(5) The fourth condition is that the seafarer is entitled under their contract to be paid, where practicable and regardless of the number of hours actually worked in a particular week, month or other period, in instalments which—
(a) are equal and occur not more often than weekly and not less often than monthly, or
(b) occur monthly and vary but have the result that the seafarer is entitled to be paid an equal amount in each quarter.
(6) Circumstances where it may not be practicable to pay a seafarer by equal instalments, or by and equal amount in each quarter, include where—
(a) a performance bonus is awarded;
(b) a salary premium is paid;
(c) the annual salary is varied;
(d) a payment is made in respect of hours in addition to basic hours;
(e) the employment starts or terminates during a week, month or other period provided for in paragraph (5)(a) with the result that the seafarer is paid a proportionate amount of their annual salary for that week, month or other period.
(7) Work may be salaried hours work whether or not—
(a) all the basic hours are working hours;
(b) the seafarer works hours in excess of the basic hours (whether the seafarer is entitled to be paid for those excess hours or not);
(c) the annual salary may be reduced due to an absence from work.
(8) “Basic hours” are a number of hours in a year specified in or ascertained in accordance with a seafarer’s contract.
(9) A “performance bonus” is a payment paid to a seafarer on merit attributable to the quality or amount of work done in the course of more than one pay reference period.
(10) A “salary premium” is—
(a) an amount of pay which is—
(i) in addition to the annual salary;
(ii) an increase in the rate of pay for particular working hours,
(b) in respect of the basic hours, and
(c) attributable to working—
(i) at a particular time of the day;
(ii) on a particular day;
(iii) at a particular location;
(iv) in a particular working environment;
(v) within a particular geographical area;
(vi) on a particular task;
(vii) subject to a particular responsibility.
(1) In this Chapter, “calculation year” has the meaning given in the following paragraphs.
(2) For a seafarer whose annual salary is payable monthly then—
(a) if the seafarer commenced the employment on the first day of a month, the calculation year is—
(i) the year beginning with that day;
(ii) in each subsequent year, a year beginning on an anniversary of that day;
(b) if the seafarer commenced the employment on any other day of a month, the calculation year is—
(i) the period beginning with that day and ending with the day before the first anniversary of the first day of the next month;
(ii) in each subsequent year, a year beginning on an anniversary of the first day of that month.
(3) For a seafarer whose annual salary is payable other than monthly the calculation year is—
(a) the year beginning with the first day of the employment;
(b) in each subsequent year, a year beginning on an anniversary of that day.
37 Determining the basic hours in the calculation year
(1) In this Chapter, the basic hours in a calculation year are determined in accordance with the following paragraphs.
(2) The basic hours in the calculation year are the basic hours ascertained in accordance with the contract at the start of the calculation year, unless there is a variation to the basic hours which takes effect in the calculation year.
(3) Where a variation to the basic hours takes effect in the calculation year, the basic hours in the calculation year are determined by adding together—
(a) the proportion of basic hours in the calculation year in the period starting before the day during which the variation takes effect, and
(b) the proportion of basic hours in the calculation year in the period after the day during which the variation takes effect until the end of the calculation year.
(4) If more than one contractual variation takes effect in the calculation year, the “basic hours in the calculation year” are determined by adding together—
(a) the proportion of basic hours in the calculation year in the period starting before the day during which the first variation takes effect, and
(b) for each variation, the proportion of basic hours in the calculation year in the period after the day during which the variation takes effect and before the day during which the next variation takes effect or, in the case of the final variation, the end of the calculation year.
(5) The proportion of basic hours in the calculation year for each of the periods in paragraphs (3) and (4) is calculated using the formula—
(D / 365) x H
where—
“D”means the number of days in the period;
“H”means the basic hours in the calculation year which have effect in that period.
38 Determining total hours of salaried hours work in a pay reference period
(1) The total hours of salaried hours work in a pay reference period are to be calculated in accordance with the following paragraphs.
(2) Where the pay reference period is a week, the total hours of salaried hours work in that period are the basic hours divided by 52.
(3) Where the pay reference period is two weeks, the total hours of salaried hours work in that period are the basic hours divided by 26.
(4) Where the pay reference period is four weeks, the total hours of salaried hours work in that period are the basic hours divided by 13.
(5) Where the pay reference period is a month, the total hours of salaried hours work in that period are the basic hours divided by 12.
(6) Where the pay reference period is any other period, the total hours of salaried hours work in that period are the basic hours divided by the figure obtained by dividing 365 by the number of days in the pay reference period.
(7) The basic hours are to be ascertained in accordance with the seafarer’s contract on the first day of the pay reference period in question unless paragraphs (8) or (9) apply.
(8) The total hours of salaried hours work in a pay reference period are to be ascertained in accordance with regulations 40 to 42 (excess hours) if the seafarer—
(a) during or before the payment reference period, works hours in excess of the basic hours in the calculation year, and
(b) is not entitled to be paid more than an annual salary, a performance bonus and a salary premium for those excess hours.
(9) The total hours of salaried hours work in a pay reference period are to be determined in accordance with regulation 43 (hours of salaried hours work if employment terminates or contract varied) if—
(a) the employment terminates before the end of the calculation year, or
(b) the contract is varied before the end of the calculation year so that it is no longer a contract for salaried hours work.
39 Absences from work to be reduced from the total hours of salaried hours work in a pay reference period
(1) The hours a seafarer is absent from work are to be subtracted from the total hours of salaried hours work in a pay reference period if all of the following conditions are met—
(a) the employer is entitled under the seafarer’s contract to reduce the annual salary due to the absence;
(b) the employer pays the seafarer less than the normal proportion of annual salary in the pay reference period as a result of the absence.
(2) The hours during which a seafarer takes industrial action are to be subtracted from the total hours of salaried hours work in a pay reference period if an annual salary was payable for those hours, or would have been payable but for the industrial action.