MLC Regulation 1.4: Duties of Seafarer Recruitment Agencies

MLC Regulation 1.4 requires seafarers to have access to an efficient, adequate and accountable recruitment and placement system without charge. Private recruitment agencies covered by the Convention must operate under a national system of licensing, certification or another form of regulation and meet the requirements of Standard A1.4.

The rule also places duties on shipowners that use recruitment agencies based in countries where the MLC does not apply. The shipowner must ensure, as far as practicable, that the agency meets the relevant MLC requirements. 

For a manning agency, Regulation 1.4 therefore affects much more than licensing. It covers recruitment practices, fees, seafarer protection, complaints, records, financial protection and the way the agency deals with shipowners.

What is MLC Regulation 1.4?

MLC Regulation 1.4 is the recruitment and placement regulation of the Maritime Labour Convention, 2006.

Its purpose is to ensure that seafarers can find employment through an efficient and properly regulated recruitment system.

The regulation establishes three core principles:

1. Seafarers must have access to an efficient, adequate and accountable system for finding employment.
2. Recruitment and placement services operating in a Member’s territory must follow the standards in the MLC Code.
3. Shipowners using recruitment services located in countries where the MLC does not apply must take steps to ensure those services meet the Code requirements as far as practicable.

The detailed duties appear in Standard A1.4, while Guideline B1.4 provides additional guidance on how recruitment and placement systems can be organized.

For agencies, the important point is that Regulation 1.4 creates a framework. National law then determines how that framework is implemented.

Who is covered by MLC Regulation 1.4?

The regulation applies to seafarer recruitment and placement services.

The MLC defines such a service broadly. It can include a person, company, institution, agency or other organization in the public or private sector that recruits seafarers for shipowners or places seafarers with shipowners. 

For private services, Standard A1.4 applies where the service:

• Has recruitment and placement of seafarers as its primary purpose, or
• Recruits and places a significant number of seafarers.

If there is doubt about whether a particular business falls within the definition, the competent authority in the relevant country determines the issue after consultation with shipowners’ and seafarers’ organizations. 

Does every business that advertises maritime jobs count as a recruitment service?

No. Simply publishing an employment opportunity does not automatically make an organization a seafarer recruitment and placement service.

The relevant question is whether the organization is actually engaged in recruiting seafarers on behalf of shipowners or placing them with shipowners. The exact classification can depend on national law and the nature of the service. 

This distinction matters for businesses that provide several types of employment or HR services and only occasionally deal with maritime recruitment.

What are the main duties under Standard A1.4?

Standard A1.4 sets out the practical requirements for recruitment and placement services.

A useful way to understand them is to divide the duties into six areas:

Area	What the MLC requires
Regulation	Private recruitment services must operate under licensing, certification or another form of regulation where applicable
Recruitment practices	Agencies must protect seafarers’ employment rights
Fees	Recruitment and placement charges generally cannot be passed to seafarers
Financial protection	An applicable system must protect seafarers against certain monetary losses
Complaints	Seafarers need access to an effective complaint process
Oversight	Competent authorities must supervise and control applicable recruitment services

The exact implementation comes from national law, so an agency should not assume that the same licence, certificate or procedure applies in every country.

Does MLC Regulation 1.4 require every agency to get an MLC certificate?

No. This is one of the most common misunderstandings about Regulation 1.4.

The MLC requires applicable private recruitment and placement services to operate under a standardized system of licensing or certification or another form of regulation. It does not create one universal international certificate that every agency must obtain.

MLC provides for various forms of national regulation and does not necessarily require certification. 

Certification may still be useful, particularly when:

• The agency operates in a country where the MLC does not apply.
• A shipowner requires evidence of compliance.
• A flag State expects additional documentation.
• The agency wants independent evidence of its compliance system.

If an agency wants to explore this route, it can review the MLC 2006 Regulation 1.4 certification process and then confirm whether the proposed certification will meet the requirements of its clients and relevant authorities.

What does Standard A1.4 say about recruitment fees?

One of the clearest duties under Standard A1.4 concerns fees.

Where a Member has adopted the system for private recruitment and placement services, its laws or other measures must ensure that recruitment and placement services do not charge seafarers for recruitment or providing employment, subject to the specific exceptions set out in the Standard.

The permitted exceptions include certain costs connected with:

• A national statutory medical certificate
• A national seafarer’s book
• A passport or similar personal travel document

The cost of visas is excluded from these exceptions and is to be borne by the shipowner. 

What does this mean for a manning agency?

An agency should keep its fee structure very clear.

For example, calling a recruitment charge a “processing fee”, “registration fee” or “placement administration fee” does not change the underlying issue if the charge is actually connected to obtaining employment.

The practical test is what the payment is really for.

LegalBabu’s current guide on RPSL responsibilities for crewing agencies also covers recruitment costs and the allocation of expenses under the Indian framework.

What financial protection must a recruitment agency provide?

Standard A1.4 requires an applicable private recruitment and placement service to establish a system of protection, through insurance or an equivalent appropriate measure, to compensate seafarers for monetary loss.

The protection relates to financial loss that can arise when the recruitment service or the relevant shipowner fails to meet obligations under the seafarer’s employment agreement. 

This requirement has an important practical detail.

The MLC does not prescribe one specific insurance product for every agency. It refers to insurance or an equivalent appropriate measure.

The protection required under Standard A1.4 is also different from the financial security arrangements dealing with abandonment and death or long-term disability. The ILO FAQ specifically warns against treating these systems as the same. 

Must seafarers know about this protection?

Yes. The 2022 amendment to Standard A1.4 added a requirement that seafarers be informed, before or during engagement, of their rights under the monetary-loss protection system. 

That means an agency should not simply maintain the insurance or equivalent protection in the background. Its recruitment process should also address the seafarer’s right to information.

What recruitment practices are prohibited under Standard A1.4?

Standard A1.4 requires national measures to prohibit recruitment and placement services from using means, mechanisms or lists intended to prevent or deter qualified seafarers from obtaining employment.

This protects seafarers from unfair blacklisting or other recruitment practices that restrict access to suitable work.

For an agency, a practical compliance review should ask:

• Are qualified seafarers free to seek suitable employment?
• Are internal lists used for legitimate operational purposes only?
• Could any list be viewed as a way of blocking employment?
• Are complaints or disputes handled through a documented process?
• Are recruitment decisions based on legitimate job requirements?

A clear written recruitment policy can help avoid problems here.

What complaints must a seafarer recruitment agency handle?

MLC Regulation 1.4 also requires an effective system for dealing with complaints concerning recruitment and placement services.

The competent authority must establish a system for investigating complaints about recruitment and placement services operating in its territory.

For an agency, this means complaint handling should be treated as part of the operating system, rather than as an issue that only matters after an inspection.

A useful internal complaint process should record:

1. Date of the complaint
2. Seafarer’s identity and contact details
3. Nature of the complaint
4. Recruitment or placement involved
5. Documents reviewed
6. Action taken
7. Communication with the seafarer
8. Escalation, where necessary
9. Final resolution
10. Date the matter was closed

Indian RPSL agencies should also review the current RPSL complaint-handling and compliance requirements when building their internal process.

How does Regulation 1.4 affect shipowners?

Regulation 1.4 creates responsibilities for shipowners when they use private recruitment and placement services.

A shipowner does not have to use a private recruitment agency. It can recruit seafarers directly.

But when it chooses to use a private recruitment service, it must take steps to ensure that the service is licensed, certified or regulated in accordance with the applicable requirements. 

This becomes particularly important when the agency is located in a country where the MLC does not apply.

What should a shipowner check?

A practical due diligence review can include:

• The agency’s national licence
• Regulatory approval
• MLC-related certification, where applicable
• Recruitment procedures
• Fee policy
• Financial protection
• Complaint procedures
• Seafarer records
• Shipowner-agency agreements
• Evidence of previous audits

The shipowner should also check whether the evidence provided by the agency is acceptable under the relevant flag State requirements.

What happens when a recruitment agency is based in a non-ratifying country?

This is one of the most important parts of Regulation 1.4.

Imagine a shipowner operates a vessel under the flag of a country that has ratified the MLC. It uses a recruitment agency located in a country where the Convention does not apply.

The shipowner must ensure, as far as practicable, that the recruitment service meets the requirements of Standard A1.4. 

The agency’s location therefore matters. The ILO FAQ explains that the shipowner may consider information collected by the flag State, along with audits or certifications concerning the quality of recruitment services operating in non-ratifying countries. 

Does a non-ratifying country agency automatically need an MLC certificate?

No. The Convention does not turn certification into an automatic universal requirement simply because an agency is located in a non-ratifying country.

However, certification or audit evidence can be particularly useful because it can help the shipowner document the steps it has taken to satisfy its own obligations.

The relevant flag State competent authority also decides whether a particular certificate issued by a recognized organization is acceptable. 

What should a recruitment agency do before placing a seafarer?

A good compliance process should begin before the placement is finalized.

A practical Regulation 1.4 process

Step 1: Confirm the seafarer’s suitability

Check the documents and qualifications required for the position.

Step 2: Confirm the shipowner and vessel

The agency should know who will employ or engage the seafarer and which vessel is involved.

Step 3: Explain the employment terms

The seafarer should have a proper opportunity to understand the employment arrangement.

Step 4: Check recruitment costs

Make sure prohibited recruitment or placement charges are not passed to the seafarer.

Step 5: Check required protection

Confirm that the applicable monetary-loss protection is in place.

Step 6: Provide required information

Tell the seafarer about relevant rights and protections, including the monetary-loss protection system.

Step 7: Maintain records

Keep the evidence needed to demonstrate that the recruitment process followed the applicable rules.

Step 8: Handle complaints

Make sure the seafarer knows how to raise a complaint and that staff know how to process it.

This process also fits well with the practical controls covered in LegalBabu’s RPSL annual compliance guide.

What records should a manning agency maintain?

MLC Regulation 1.4 does not provide one universal record folder for every recruitment agency. National law determines many of the practical recordkeeping requirements.

Still, an agency should be able to demonstrate how it complied with its recruitment obligations.

Useful records can include:

Record	Why it matters
Agency licence or approval	Shows regulatory status
Seafarer recruitment records	Demonstrates how placements were handled
Employment documentation	Supports transparency around employment
Fee records	Helps demonstrate that prohibited charges were not imposed
Financial protection evidence	Shows that required protection exists
Complaint register	Demonstrates complaint handling
Shipowner agreements	Establishes the commercial relationship
Audit reports	Provides evidence of external review
Corrective action records	Shows how compliance gaps were addressed
Seafarer information records	Helps demonstrate that required rights were communicated

For Indian agencies, these records should also be aligned with the applicable RPSL requirements.

LegalBabu’s RPSL annual compliance service includes documentation review, operational due diligence and preparation for compliance audits.

How does Regulation 1.4 relate to national licensing?

The MLC sets international standards, but implementation happens through national systems.

Standard A1.4 allows a country to establish a standardized system based on:

• Licensing
• Certification
• Another form of regulation

The system must be established or changed after consultation with the relevant shipowners’ and seafarers’ organizations, as required by the Standard.

The MLC also does not require a country to establish a private recruitment system where it chooses to provide a public recruitment service instead.

This is why an agency should always ask two separate questions:

Question 1: What does Regulation 1.4 require?

Question 2: How has the country where my agency operates implemented those requirements?

The answer to the second question determines the actual licence, certificate or regulatory approval the agency needs.

What is the role of the competent authority?

The competent authority has an important oversight role.

Where private recruitment and placement services operate, the competent authority is responsible for establishing an appropriate system of supervision and control. The MLC framework also provides for investigation of complaints against these services.

The competent authority may therefore be involved in:

• Licensing or certification systems
• Regulatory oversight
• Inspections
• Complaint investigations
• Determining whether a service falls within the MLC framework
• Establishing national implementation measures

This also explains why an agency should not rely only on a general interpretation of the MLC. The national authority’s rules matter.

Can a shipowner use a recruitment agency that is not MLC-certified?

Yes, depending on the applicable national and flag State requirements.

The MLC does not require shipowners to use only agencies holding a document called an MLC certificate.

The shipowner must, however, take appropriate steps to ensure that the recruitment service meets the applicable requirements. This is particularly relevant where the service operates in a country where the MLC does not apply. 

A shipowner may therefore request additional evidence even when a formal MLC certificate is not legally required.

For example, it could request:

• National licensing evidence
• Audit reports
• Recruitment procedures
• Financial protection documents
• Complaint records
• Seafarer protection policies
• Evidence of compliance with applicable national law

This is where commercial due diligence and legal requirements can overlap.

How can an agency prepare for a Regulation 1.4 audit?

Start with the actual recruitment process.

Regulation 1.4 audit checklist

Regulatory status

• Is the agency properly licensed, certified or regulated?
• Is the approval current?
• Are branch offices covered where required?

Recruitment

• Is the recruitment process documented?
• Are seafarers treated fairly?
• Are qualified seafarers free from improper restrictions?

Fees

• Are recruitment and placement charges prohibited from being passed to seafarers?
• Are permitted personal document costs clearly separated?
• Are visa costs handled correctly?

Financial protection

• Is the required monetary-loss protection in place?
• Is evidence of the protection available?
• Are seafarers informed of their rights?

Complaints

• Is there a written complaint procedure?
• Is every complaint recorded?
• Are unresolved matters escalated appropriately?

Shipowner checks

• Are shipowners and vessels properly documented?
• Are relevant agreements current?
• Are flag State requirements reviewed?

Records

• Are recruitment records complete?
• Are supporting documents easy to retrieve?
• Are previous audit findings closed?

A useful practical rule is simple: if your agency cannot show how a recruitment decision was made, how costs were allocated or how a complaint was handled, the process needs stronger documentation.

What are the most common Regulation 1.4 compliance mistakes?

1. Assuming certification is always mandatory

The MLC permits licensing, certification or another form of regulation. Certification is not universally required as a standalone document. 

2. Charging a recruitment fee under another name

Changing the label does not change the nature of a prohibited recruitment or placement charge.

3. Ignoring financial-loss protection

An agency should not focus only on licensing. Standard A1.4 also addresses protection against monetary loss. 

4. Failing to inform seafarers

The 2022 amendment specifically requires information about rights under the monetary-loss protection system before or during engagement. 

5. Treating every country the same

National implementation differs. The agency needs to understand the regulatory system in its own country and the requirements relevant to the ships and shipowners it serves.

6. Assuming one certificate is accepted everywhere

The relevant flag State competent authority decides whether a particular certificate issued by a recognized organization is acceptable. 

How should Indian manning agencies approach Regulation 1.4?

Indian agencies need to consider the MLC alongside India’s own recruitment and placement framework.

For an RPSL company, this means looking beyond the international Convention and checking the current national requirements covering:

• Recruitment procedures
• Seafarer records
• Employment agreements
• Recruitment costs
• Complaints
• Repatriation
• Financial security
• Welfare obligations
• Audits and inspections

LegalBabu’s recently updated RPSL Rules and responsibilities guide covers these practical duties under the current Indian framework.

Agencies should also keep their compliance process current rather than relying on an old checklist. Maritime recruitment rules can change, and a procedure that was acceptable under an earlier framework may need updating.

What is the difference between Regulation 1.4 and Standard A1.4?

This distinction is useful when reading the MLC.

Provision	Main role
Regulation 1.4	Establishes the broad obligation concerning recruitment and placement
Standard A1.4	Provides the mandatory detailed requirements for implementation
Guideline B1.4	Provides additional non-mandatory guidance on implementation

The ILO explains that Regulations establish broader obligations, while the Code provides more detailed implementation requirements. Part A of the Code contains mandatory Standards, while Part B contains non-mandatory Guidelines that Members must give due consideration to. 

So, when an agency wants to understand its concrete compliance duties, it should read Regulation 1.4 together with Standard A1.4, rather than looking at the Regulation alone.

Can an agency use an MLC certificate from a recognized organization?

It may be useful, but acceptance is not automatic.

The ILO FAQ explains that the MLC provides for national regulation of recruitment and placement services, including certification as one possible approach. Where an agency obtains a certificate from a recognized organization, the relevant flag State competent authority decides whether that certificate is acceptable. 

Before relying on such certification, an agency should therefore check:

1. Who issued the certificate?
2. What requirements were assessed?
3. Which jurisdiction recognizes it?
4. Which flag States will accept it?
5. Is it current?
6. Does it cover the agency’s actual recruitment activities?

That last question is easy to overlook. A document is useful only when its scope matches the activity being assessed.

What should a crewing agency do if the rules are unclear?

When the application of Regulation 1.4 is genuinely unclear, the agency should seek clarification from the relevant competent authority.

The ILO FAQ specifically states that where there is doubt about whether a private recruitment and placement service falls within the MLC requirements, the question is determined by the competent authority after the required consultation. 

For an agency operating across multiple jurisdictions, it is also sensible to document the basis for its compliance decisions.

A short written compliance note can record:

• The country where the agency operates
• The applicable national licence
• The MLC requirements considered
• The flag States served
• Any additional certification requested by clients
• The authority consulted, where applicable
• The date of the review

That creates a useful audit trail and reduces the risk of relying on assumptions.

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