Introduction: Why the Seafarer Employment Agreement Is the Foundation of Every Crew Assignment
Every time a seafarer joins a vessel, one document defines the legal relationship between that person and the shipowner or operator: the seafarer employment agreement, known in Indonesia as the Perjanjian Kerja Laut (PKL). It records wages, contract length, rank, working hours, leave, and repatriation rights. For operators deploying crew in Indonesian waters, a properly drafted agreement is far more than paperwork. It protects against wage disputes, compensation claims, and inspection findings.
In our daily work as a ship agent, problems rarely arise from bad intent. They arise because the agreement is incomplete, signed only after the seafarer has boarded, or not available on board when an inspector asks for it. During Port State Control or crew document checks at the port, a missing seafarer employment agreement can be recorded as a deficiency under the Maritime Labour Convention (MLC) 2006. Understanding the PKL early saves time and cost, especially when a crew change service has to run to a tight schedule.
This article explains what a PKL is, its legal basis in Indonesia, the elements it should contain, how it applies to Indonesian and foreign seafarers, and the mistakes operators should avoid. The information is general and is not legal advice; for complex contracts, consult a maritime employment lawyer.
What Is a Perjanjian Kerja Laut (PKL) and What Is Its Legal Basis
A PKL is an individual employment agreement between a seafarer and a shipowner, operator, or the company acting on their behalf, setting out the terms and conditions of work on board. Internationally, the equivalent term is the Seafarers' Employment Agreement (SEA) under Regulation 2.1 and Standard A2.1 of MLC 2006. Indonesia has ratified MLC 2006, so its minimum standards are relevant to Indonesian-flagged ships and to foreign ships calling at Indonesian ports.
Domestically, the framework includes Law No. 17 of 2008 on Shipping, government regulations on shipping and seafarers, and Ministry of Transportation regulations on the recruitment and placement of crew. These provisions require every crew member to have a written employment agreement. For Indonesian seafarers recruited and placed through an agency, the agency must hold a valid business licence, and the PKL typically goes through an endorsement or registration process with the competent authority, depending on the type of placement.
It is important to distinguish a PKL from a collective bargaining agreement (CBA). A CBA is a collective arrangement between shipowners and a seafarers' union that sets minimum pay and benefits; the individual PKL then refers to the CBA where one applies. The two must be consistent: a PKL may not contain terms below the minimum standards guaranteed by MLC or by the CBA it references.
Mandatory Elements of a PKL
Under Standard A2.1 of MLC 2006, a seafarer employment agreement must at least contain the seafarer's full name, date of birth or age, and place of birth; the shipowner's name and address; the place and date where the agreement is entered into; the capacity in which the seafarer will be employed; the amount of wages or the formula used to calculate them; and the paid annual leave or the formula for calculating it. It must also state the termination of the agreement and its conditions, including notice periods, the repatriation entitlement, the health protection and social security benefits provided by the shipowner, and a reference to the CBA, if any.
In Indonesian practice, operators should also ensure the following are stated clearly: contract duration and extension mechanism, the ports of embarkation and disembarkation, who bears travel costs to and from the vessel, accident and medical insurance obligations, and arrangements on working hours and rest hours. International standards set limits on hours, including a minimum of ten hours of rest in any 24-hour period and 77 hours in any seven-day period. Reflecting these rules in the contract, or referring to the document that contains them, helps avoid later disputes.
Seafarers are entitled to read and understand the agreement before signing, and must be given an opportunity to seek advice. Each party keeps a signed original, and a copy must be available on board for examination by authorised officials. The language used must be one the seafarer understands; if a PKL for an Indonesian seafarer is drafted in English, it should be accompanied by an Indonesian version or explanation.
PKL for Indonesian and Foreign Seafarers: What Is Different?
For Indonesian seafarers working on Indonesian-flagged vessels, the PKL is among the documents examined when departure clearance is issued and during ship inspections, consistent with the requirement to maintain a crew list. For Indonesian seafarers placed on foreign vessels, the licensed manning agency is responsible for ensuring that the agreement meets national and international standards, including protection in case of accident, illness, or unilateral dismissal.
For foreign seafarers working on foreign vessels calling at Indonesia, the law governing the agreement is generally determined by the flag state and the CBA in use, but Indonesian authorities may still verify compliance with MLC standards while the ship is in port. This is where supporting documents matter. During a crew change, seafarers signing on and off carry passports, seafarer books, competency certificates, and a copy of their agreement. Contract details that conflict with immigration documents, for example a rank on the PKL that differs from the rank on the visa, can slow the process. Foreign crew joining at an Indonesian port need the right entry documents, and our seafarer visa service helps ensure that the visa category matches the assignment.
Seafarers who sign off in Indonesia for repatriation also deserve attention. The repatriation clause in the PKL determines who pays for tickets, accommodation, and meals until the seafarer reaches home. We cover this in more detail in our article on seafarer repatriation in Indonesia, including the documents operators must prepare.
Wages, Working Hours, Leave, and Termination
Wages are the most frequent source of disputes. A PKL should itemise basic wage, fixed allowances, overtime, and any other components separately, together with the currency and payment schedule. MLC 2006 requires wages to be paid at regular intervals, at least monthly, and seafarers have the right to remit part of their earnings to their families. Shipowners must also provide a monthly account showing wages due and deductions made.
On leave, international rules set minimum paid annual leave at 2.5 calendar days per month of employment. Good practice is to state this entitlement and its calculation explicitly. Avoid clauses that waive the right or replace it with cash payments that do not meet the standard, because inspectors may treat these as violations.
For termination, the PKL should state reasonable notice periods and valid grounds, and the circumstances in which a seafarer may end the agreement without notice, such as urgent compassionate reasons, illness, or injury. Unjustified unilateral termination without honouring repatriation rights can trigger claims and, in prolonged cases, lead to crew abandonment. Further protections are discussed in our guide to MLC 2006 and seafarer rights, which complements this article.
The Role of the Ship Agent and Common Mistakes to Avoid
A ship agent does not draft the employment relationship between seafarer and operator, but it ensures that the documents needed at the port are complete and consistent. Before a vessel arrives, the agent typically requests the crew list and verifies that the details of seafarers joining or leaving match their documents. This coordination also ties into PKKA services and customs arrival formalities, so incorrect crew data can affect the entire clearance sequence.
The most common mistakes we see include: the PKL being signed only after the seafarer has boarded; no copy being available on board; the rank not matching the competency certificate held; contract length exceeding the maximum service period permitted under MLC without a clear basis; and discrepancies between contract data and the seafarer book or passport. Each of these can lead to findings and, combined with other deficiencies, to detention, as explained in our article on Port State Control detention.
Practical preventive steps include preparing a standard PKL template reviewed by legal counsel, cross-checking the PKL, STCW certificates, and visa before departure, keeping digital copies accessible from both ship and office, and auditing compliance regularly. When administrative help is needed at the port, our support services can coordinate document and crew logistics requirements.
FAQ
Q: Must a seafarer employment agreement be in writing?
A: Yes. Both Indonesian shipping law and MLC 2006 require the agreement to be written and signed by both parties, with each party holding a signed original.
Q: Does a copy of the PKL need to be on board?
A: Yes. A copy of the agreement, and the CBA where applicable, must be available on board so authorised officials, such as Port State Control officers or the harbour master, can examine it during inspections.
Q: What is the difference between a PKL and a CBA?
A: A PKL is an individual contract between the seafarer and the operator, while a CBA is a collective agreement with a seafarers' union that sets minimum standards. The PKL must be consistent with the CBA it refers to.
Q: Who pays for repatriation under a PKL?
A: In principle, the shipowner or operator bears repatriation costs, and this entitlement should be written into the PKL. The details depend on the reason for ending the contract and the rules that apply.
Conclusion
A clear, complete PKL that is consistent with other seafarer documents is the foundation of crew compliance. By understanding the mandatory elements, the differences between Indonesian and foreign seafarers, and the mistakes that occur most often, operators can reduce the risk of disputes and inspection findings while keeping port operations smooth. Check every document before the vessel arrives so that crew changes proceed without delay.
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