Grain corridor: read the contract carefully

Recently, MTWTU has noted an increase in the number of inquiries from Ukrainian sailors on ships that work in the Grain Corridor and depart from ports in Ukraine.

Recently, Ukrainian sailors have been increasingly concerned about a specific clause in their contracts that provides for penalties if they do not return to Ukraine after the end of their employment contract. Such conditions may be included as a separate clause in the contract itself or presented as a separate agreement and look something like this:

“The sailor undertakes to return to Ukraine as part of the ship’s crew after completing a foreign voyage. In case of violation of this obligation, the sailor must pay a fine to the Company, and materials regarding the violation of this obligation will be sent to the relevant state authorities of Ukraine to bring the sailor to responsibility provided by the current legislation of Ukraine.”

MTWTU provides a lawyer’s comment on the legality of such penalties.

“Despite the contractual obligation of Ukrainian sailors to return to Ukraine after the end of their employment contract, Ukrainian legislation does not provide for any liability in case of violation of such an obligation.

However, according to the Code of Ukraine on Administrative Offenses, there is administrative liability for violating the procedure for crossing the state border by citizens of Ukraine (outside checkpoints across the state border of Ukraine or at checkpoints across the state border of Ukraine without the appropriate documents or with a forged document or one containing inaccurate information about the person, or without the permission of the relevant authorities), namely a fine ranging from UAH 3,400 to UAH 8,500, or administrative arrest for up to fifteen days with confiscation of instruments and means of committing an offense. However, this does not apply to sailors who legally cross the border as part of the crews of ships working in the Grain Corridor”.

"Another question that many sailors are interested in is the possibility of receiving a summons and being mobilized from the ship in case of entry into ports of Ukraine.

“For citizens of Ukraine who violate the legislation on defense, mobilization training and mobilization and do not arrive at the territorial centers of recruitment and social support upon receipt of a summons, administrative liability is provided in the form of a fine ranging from UAH 1,700 to UAH 3,400 if a citizen of Ukraine received a summons while on the territory of Ukraine but ignored it.

Note that the above-mentioned sanctions should not be applied to sailors who have legally left the territory of Ukraine, and in any case, the fines specified in Ukrainian legislation are incompatible with fines that shipowners unjustifiably indicate in employment contracts or additional agreements (often for several thousand sums in foreign currency)”.

Given the above, we recommend that all sailors planning to sign a contract to work on ships operating in the Grain Corridor and departing from Ukrainian ports do not sign any additional agreements or suspicious contracts without proper consideration and full understanding of the consequences. We advise you to contact MTWTU if you need consultations and explanations regarding the terms of the employment contract, the provisions of which are unclear or suspicious to you, until it is signed.

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