Managing payroll for yacht crew requires precise legal compliance, correct taxation structures, and clear employment relationships.
Owners typically have two options for managing crew payroll
With this method, crew are officially employed by the same company that owns the yacht. Payroll is processed internally or by an external accountant (depending on the jurisdiction).
Risk: This option exposes the Owner and the vessel-owning company directly to potential liabilities relating to crew employment, insurance disputes, labor complaints, severance claims, and compliance failures.
(Marshall Islands Series Company)
In this structure, crew are formally employed by a Marshall Islands-based Series Company, acting as the employer of record. The yacht owner contracts Global Yacht Management to manage payroll, compliance, and employment administration.
The owning company is not the employer of the crew. This gives additional protection to the Owner in the event of crew disputes, termination claims, injury-related claims, wrongful dismissal claims, and employment disputes.
Marshall Islands law aligns closely with MLC conventions, creating a favorable framework for flags, insurance providers, banks, auditors, and safety regulatory bodies.
Crew receive legal employment contracts, compliance with hours of rest, insurance coverage, and appropriate benefits—but the Owner lowers risk and avoids administrative burden.
Owners avoid local employer liabilities such as social security registration, employer tax registration, payroll tax filing, local labor laws, and termination restrictions.
For yacht ownership, offshore employment offers the most protection. A yacht moves between multiple territorial jurisdictions, hosts crew members of different nationalities, often operates under foreign registration, and may spend periods in international waters.
No local employment structure can adequately cover all these scenarios.
Most importantly, costs are predictable and risks are substantially reduced.
We handle payroll fully from start to finish and act as the liaison between the crew, the employer of record, and the Owner
In short: crew are legally and structurally managed, with reduced liability for the Owner and clear compliance for regulatory bodies.
With Global Yacht Management, the Owner simply funds payroll, and we manage everything else—accurately, legally, discreetly, and efficiently.