Marine Labour Accidents under Greek Law: Compensation, Jurisdiction and Applicable Law
It is an unfortunate reality that human activity inevitably involves the risk of failures and accidents. The shipping industry is no exception, regardless of the safety measures implemented from time to time. This article provides a brief introduction to marine labour accidents under Greek law and seeks to clarify several issues that frequently give rise to confusion.Marine Labour Accidents
Under Greek law, an accident at work is generally defined as an incident in which an employee sustains an injury as a result of a sudden and violent event occurring in the course of performing their duties. The same definition applies to marine labour accidents, with the additional requirement that the services are performed by a seafarer on board a ship. However, this definition is too narrow to encompass all cases recognised by Greek case law.
The broader definition adopted by the Greek courts includes any death, injury or illness caused by, or otherwise connected with, a seafarer’s work on board a ship. This broader approach also covers cases involving non-violent causes, such as the aggravation of a pre-existing illness or a health condition unrelated to the work itself, where prompt or appropriate medical treatment was not provided, whether through the negligence of the crew or because the vessel was located far from adequate medical facilities. A stroke or heart attack may also qualify as a marine labour accident if it can be established that the incident occurred under extraordinary or particularly demanding or stressing working conditions, or that appropriate medical treatment was not provided promptly. By contrast, a cancer diagnosis made while a seafarer is on board, would not, in itself, constitute a marine labour accident, given that cancer generally develops over an extended period and may not be connected with the work performed. An accident occurring while a seafarer is travelling to or from the vessel may also qualify as an employment accident. An example would be an aircraft accident occurring during the seafarer’s repatriation following completion of service on board.
Greek law provides for two principal forms of compensation: Full compensation and Limited compensation.
Full Compensation
Full compensation covers the losses and damages sustained by the seafarer as a result of a marine labour accident. These may include loss of future earnings, compensation for moral harm, wages payable during sick leave, medical expenses and other expenses incurred—or costs that would otherwise have been avoided—had the accident not occurred. A seafarer is entitled to full compensation where the accident resulted from a breach of specific safety regulations applicable on board the vessel or from the wilful misconduct of the shipowner or other crew members. According to the Greek Supreme Court (Areios Pagos), such regulations must be sufficiently specific to prescribe particular safety measures and procedures intended to protect employees. General precautions based on common sense or the level of diligence ordinarily expected in any workplace do not, in themselves, qualify as specific safety regulations for this purpose. For example, Greek case law has held that a violation of the International Convention for the Safety of Life at Sea (SOLAS) does not, in itself, necessarily constitute a breach of specific safety regulations within the meaning of the relevant legal provisions. In the event of a seafarer’s death, close family members may claim compensation for moral harm, as well as compensation for the loss of financial support they could reasonably have expected to receive from the deceased in the future.
Limited Compensation
Limited compensation, commonly referred to as compensation under Law 551/1915, is payable where a seafarer sustains an injury that temporarily or permanently affects their capacity to work, or where the accident results in death, irrespective of the cause of the accident. Where the accident was attributable to the seafarer’s own negligence, the compensation may be reduced by half. The calculation of limited compensation is based on the seafarer’s earnings during the relevant period immediately preceding the accident or the minimum wage prescribed by the applicable Collective Labour Agreement, whichever is higher. For example, in the case of total and permanent incapacity, the compensation payable to a seafarer would be calculated on the basis of six years’ earnings. However, according to the statutory formula described above, where the total amount of those earnings exceeds €2,935, the compensation would be limited to €2,935 plus one quarter of the total earnings for the six-year period. In the event of death, compensation under Law 551/1915 is payable to the deceased seafarer’s eligible close relatives.
Collective Bargaining Agreements
In recent years, marine employment contracts have increasingly provided for standard contractual compensation based on international Collective Bargaining Agreements, particularly those concluded under the auspices of the International Transport Workers’ Federation (ITF). Such contractual compensation is generally higher than the compensation provided for under Greek law. As a general principle, the seafarer may claim the higher amount and, where the lower amount has already been paid, seek recovery of the outstanding difference, with credit given for the amount already received.
Moral Damages
Where a marine labour accident results from the negligence of the shipowner or other crew members, the seafarer may also claim compensation for moral harm, even where no breach of specific safety regulations has occurred. This claim may be pursued in addition to the limited compensation available under the applicable legislation. The legal basis for such a claim is Article 932 of the Greek Civil Code, which provides, in substance, that, independently of compensation for pecuniary loss, a court may award a reasonable sum as compensation for moral harm resulting from an unlawful act. In the event of a person’s death, such compensation may be awarded to the deceased’s family in respect of their moral suffering. There are no fixed rules or statutory limits governing the amounts that may be awarded for moral harm. The court determines the appropriate amount at its discretion, taking into account various factors, as it is indicatively, the degree of fault of the parties involved, their financial and social circumstances, the personal and family needs of the injured or deceased seafarer, the severity of the injury, its impact on the seafarer’s working capacity and the seafarer’s age.
Jurisdiction
Shipowners have sought to limit their liability, in part, by owning vessels through offshore companies and, in some cases, by including contractual clauses providing for the application of more favourable laws or jurisdiction. Greek shipowners are not an exemption. Nevertheless, as a general rule, seafarers bring their employment-related claims before the Greek courts rather than other potentially available fora. As a general principle, a court may exercise jurisdiction where the defendant is domiciled within its jurisdiction. Where an offshore shipowning company is involved however, the Greek courts may examine the company’s actual seat, namely the place where its central management and principal business activities are carried out. This is particularly relevant where the company’s registered office, for example in Liberia or the Marshall Islands, does not reflect the location of its actual management.
Accordingly, where it can be established that the vessel is managed from Greece, the Greek courts may assert jurisdiction over the dispute, subject to the applicable jurisdictional rules. It should also be noted that, under EU Regulation 1215/2012, an injured seafarer—or the seafarer’s relatives in the event of death—may, depending on the circumstances, have the right to choose between several competent jurisdictions. These may include the courts of the place where the shipowner is domiciled and the courts of the place where the employee habitually performs their work. In the case of employment on board a ship, the latter may involve consideration of the state whose flag the vessel flies, subject to the applicable legal framework. The right to bring proceedings before the courts of the employer’s domicile or another court with jurisdiction under the Regulation, generally cannot be restricted by a prior contractual agreement, unless the agreement was concluded after the dispute arose or confers additional jurisdiction on the employee’s benefit. The Regulation applies to all employment disputes that involve a litigant who is not a Greek resident, irrespective of whether such litigant resides in a EU Member State or other country. Where a dispute falls outside the scope of the Regulation because all litigants are Greek residents, the relevant Greek procedural rules will apply.
Applicable Law
The determination of the applicable law may also be controversial, and Greek case law has not always addressed the issue in a clear and uniform manner. In principle, it is accepted that the law governing a marine labour accident should generally be the same law that governs the employment contract, since the accident occurred in the performance of that contract. Under this approach, the tortious aspects of the accident may be absorbed into the contractual relationship. Where a dispute involves foreign elements, the applicable law must therefore be determined by reference to the relevant conflict-of-law rules, including EU Regulation 593/2008 (Rome I), which incorporates and develops principles previously addressed by the Rome Convention of 1980 concerning the law applicable to contractual obligations. Under this Regulation, the Greek court will first examine whether the parties have chosen the law applicable to their employment contract, as they are generally permitted to do. However, Article 8 of the said Regulation provides that such a choice must not deprive the employee of the protection afforded by mandatory provisions of the law that would have applied in the absence of that choice. Where no effective choice of law has been made, the applicable law is generally determined by reference to the country in which, or from which, the employee habitually carries out their work in performance of the contract. Where the applicable law cannot be determined on that basis, the law of the country in which the place of business through which the employee was engaged is situated may apply. These rules are subject to the Regulation’s other provisions, including the exception for cases in which the circumstances as a whole demonstrate a closer connection with another country.
The close connection between the employment contract and a particular country will generally be a decisive factor for a Greek court in determining the applicable law. Various factors may be taken into account when assessing the connection between an employment contract and a particular country. These include the vessel’s flag, the shipowner’s place of residence or establishment, the nationalities of the seafarer and shipowner, and the place where the seafarer was recruited. These factors are not necessarily assessed by simply counting how many point towards a particular country. Rather, their relative significance is evaluated in the context of the individual case. Depending on the circumstances, a single factor may be sufficient to establish the necessary connection. In line with this approach, a great number of judicial decisions have found that, in the absence of stronger connections with another country, the fact that the shipowner’s actual seat is in Greece may support the application of Greek law. Conversely, the vessel’s flag may carry less or no weight where the vessel flies a flag of convenience. Furthermore, Article 9 of Regulation 593/2008 provides for the application of overriding mandatory provisions of the forum, irrespective of the law otherwise governing the contract. In practical terms, this may allow a Greek court to give effect to certain mandatory provisions of Greek employment law where the same are more favourable for the employee. Consequently, Greek employment law may apply, directly or indirectly, in cases where the relevant connections with foreign law might otherwise appear to predominate or a choice of another law has been made. Therefore, in the usual example, where a non-Greek seafarer was engaged to work on a foreign-flagged vessel owned by an offshore company but managed or operated from Greece, the seafarer will normally enjoy the protection of Greek law, even if another law is considered applicable.
In closing
The interpretation and application of Greek and EU law by the Greek courts have made Greece a potentially important forum for the resolution of marine labour disputes involving foreign seafarers and Greek shipping interests. In particular, seafarers from developing countries may consider bringing claims before the Greek courts where the relevant jurisdictional and applicable-law rules permit them to do so, especially if the remedies available under Greek law may offer more favourable compensation than those available in other jurisdictions.
The present article should not be regarded as a substitute for asking professional advice. The author will accept no liability for any information provided or views expressed herein. Copyrights reserved.