Late last week, it was announced that Article 31 of the Social Security Finance Law 2016 (the legal basis of Decree 2017-307) would be modified to provide options for seafarers to choose their own social security regime. Further confirmation of this came by way of an industry update (Important information and update on changes to French social security obligations) from Andrew Charlier, partner at Ince & Co, Paris.
The PYA also issued a similar statement last week on the developments Update on French Social Security, whereby they drew caution in that the developments do not mean that there will be no social security obligations for yacht crew in France and further stating that the French government will still have to fulfil its obligations under MLC2006.
We understand that in the coming weeks, modifications will be made and a new Social Security Finance Law of 2017 formed, which won’t enter into force until early 2018. Until the modification and new law is effective, or the French Government announce otherwise, the Decree 2017-307 remains in force and is not suspended.
Furthermore, we also understand that the ENIM changed their stance last week, as to whom the new Decree affects. They confirmed that the Decree is now applicable to private yachts, as well as yachts under Temporary Importation rules, and commercial yachts. They had previously indicated that it would only apply to commercial yachts.
We continue to closely monitor the situation with UK and French lawyers and will provide further updates as and when matters become clearer.
