Last updated: April 2026
Of all the entitlements yacht crew lose money on, leave pay is the most common — and the most often unrecovered.
The reason is simple: most crew don’t know what they’re actually owed, how it should be calculated, or what their flag state’s MLC implementation requires. So when a captain says “that’s just how it works,” there’s no internal compass to push back.
This guide explains what holiday pay actually is, what counts and what doesn’t, and what you should expect at end of contract.
The MLC 2006 baseline
MLC 2006 Standard A2.4 sets the minimum leave entitlement:
“Each Member shall ensure that seafarers employed on ships that fly its flag are given annual leave with pay under appropriate conditions, in accordance with the provisions of the Code.”
The implementing standard is 2.5 calendar days per month of employment as the absolute floor. Flag states can require more — none can require less.
A few specifics often missed:
Leave is calendar days, not working days. This matters for crew on rotation.
Leave accrues from your first day of employment, not after probation.
Sundays and public holidays during your leave count as leave.
Justified absences (sick days, etc.) do not consume your annual leave entitlement.
Cayman, Marshall Islands, Malta, and Red Ensign — different in practice
While all major yacht flag states have ratified MLC 2006, their implementations vary in enforcement:
- Cayman Islands uses the Cayman Maritime Authority for inspection and complaints. Generally crew-friendly enforcement.
- Marshall Islands delegates to Recognized Organizations (often class societies). Compliance is documented but enforcement varies by the RO.
- Malta falls under EU oversight in addition to MLC — port-state inspections are common and documented.
- UK Red Ensign Group (UK, Cayman, Bermuda, Gibraltar, BVI, Isle of Man) operates under MCA standards, generally with stricter rest hour and leave compliance documentation.
The minimum leave is the same. The likelihood of consistent enforcement varies. Crew on yachts with active inspection regimes tend to have leave handled correctly more often.
What actually counts as paid leave
This is where many disputes start.
Counts as paid leave:
- Paid time off taken between contracts or rotations, with full salary
- End-of-contract payout for accrued unused leave, calculated at full salary rate
- Paid public holidays specifically named in your SEA
Does NOT count as paid leave (despite what some captains claim):
- Days where you weren’t working but weren’t formally on paid leave (e.g., yacht in shipyard with no work to do)
- “Compensatory” days off that aren’t documented as part of your leave entitlement
- Reduced-rate days during transition periods unless explicitly agreed
- Travel days at the start or end of contract (unless your SEA says otherwise)
If your captain or HR is treating non-leave days as leave, that’s where the gap usually appears — and where calculations often need correction.
Day-rate crew: yes, MLC applies to you too
A common misconception: day-rate yacht crew aren’t covered by MLC leave provisions.
This is incorrect.
Day-rate crew on vessels that fall under MLC 2006 (which includes most yachts above 500 GT operating internationally) are entitled to leave equivalents. The form may differ — leave may be paid out monthly or at end of contract rather than taken in kind — but the entitlement exists.
If your day rate “includes leave,” that should be:
- Documented in your SEA with a specific clause
- Calculated transparently so you can verify it
- Higher than your equivalent salary day rate to account for the leave loading
If none of those three apply, your day rate may not actually include leave at all — regardless of what the captain says.
End-of-contract leave: where most disputes happen
The single highest-friction moment for leave entitlements is the final 30 days of a contract.
By this point, the captain knows you’re leaving. Their incentive to negotiate generously diminishes. Verbal promises made earlier can become “I don’t recall agreeing to that.”
This is the moment when documentation, written confirmation, and timely calculation matter most.
A workable approach 30–45 days before contract end:
“As we’re getting closer to the end of my contract on [date], I wanted to double-check the leave figures so we’re both on the same page. Based on my SEA and [X] months worked, my calculation comes out to roughly [Y] days of paid leave. Could you let me know how this will be paid out, and whether the figures align with what’s on your side?”
This raises the topic before the busy handover period, shows you’ve done the math (signaling you’ll notice if it’s wrong), and offers cooperation rather than confrontation.
Common pattern: “It’s already in your salary”
Of all the things captains and HR say about leave, “it’s already in your salary” is the most contested.
Sometimes it’s true — if your SEA explicitly states that your salary includes leave loading, with a transparent calculation showing how.
Most often it’s not — it’s a verbal claim made at end of contract to deny separate payout.
The test: can the person making the claim show you, in your signed SEA, the specific clause that says leave is included, and how the calculation works?
If not, you are likely owed separate leave payout.
→ Pay Check Calculator — calculates expected vs received leave automatically. [Link]
→ Pay & Leave Review Pack — for end-of-contract leave situations that need structured documentation. [Link]
