Legal Babu has launched the RPSL Annual Compliance Service for RPSL companies in India.

The DG Shipping issues RPSL licenses to crewing agencies with a set of conditions designed to protect seafarers’ rights and maintain industry standards, in accordance with MLC 2006 Regulations.

DG Shipping clearly outlines the dos and don’ts for all registered RPSL companies and regularly updates these rules or compliance requirements through circulars and notices. Violations of these rules often lead to the suspension or cancellation of RPSL licenses, barring the recruitment activities of the offending companies.

In extreme cases, the bank guarantee may also be withdrawn. And a financial penalty is imposed.

Therefore, it is imperative to thoroughly understand the compliance requirements to avoid any repercussions later. DG Shipping will not accept innocence or ignorance of the rules as an excuse.

What are the compliance requirements of RPSL companies?

RPSL companies must adhere to a comprehensive set of compliance requirements to ensure ethical and legal operations in the maritime recruitment industry. These requirements include:

• License Display: Display the license prominently at the registered office and an attested copy at the branch office.
• No Fee Charging: Seafarers must not be charged any fees for recruitment or employment services. If DG Shipping finds evidence of any amounts collected in the company account, or in the directors’ bank accounts, their family members, or employees, the RPSL license will be suspended.
• Record Keeping: Maintain the following permanent records at the registered office:
  • Register of names and addresses of seafarers.
  • Register of charges collected from seafarers for travel documents and medical exams.
  • Bio-data of each recruited seafarer, including personal details and next of kin information.
  • Copies of employment contracts for each seafarer.
  • Originals of all MoUs, contracts, and agreements with employers.
  • Documents related to seafarer recruitment, including advertisements, interview letters, correspondence, selection award sheets, and appointment letters, kept for a minimum of five years.
  • Register of claims for compensation due to injury or death of seafarers, including details of next of kin, passport numbers, country of employment, nature of injury or death, date of accident, employer details, and compensation paid.
• Repatriation and Transport: Do not charge seafarers for repatriation if stranded or for the transportation of mortal remains.
• Valid Documentation: Ensure all recruited seafarers possess valid documents such as passports, visas, CDCs, and necessary qualification certificates.
• Insurance Coverage: Ensure that both the ships on which seafarers are placed and the seafarers themselves have adequate insurance coverage.
• Personnel Training: Ensure that all office personnel are adequately trained and knowledgeable in the maritime industry.
• Legal Compliance: Ensure no criminal convictions or pending proceedings exist for the company or its personnel and maintain valid contracts with all ship owners or agents.
• Valid seafarer’s employment agreement: Seafarers must be provided with a valid employment agreement, and the terms of employment must comply with MLC regulations and the rules of the flag state. You may refer detailed checklist for drafting seafarers’ employment agreement.
• SWFS payment: RPSL companies must contribute SWFS payments to Seafarers’ Welfare Fund Society for every seafarer, excluding trainees, engaged onboard. These payments should be calculated on a pro-rata basis according to the actual period of employment. Contributions must be made by the fifteenth of the month following the end of each quarter. For example, for Q1 (January to March), the payment is due by April 15th.

Type of vessel	SWFS contribution(Rs.)
Foreign flag ships	6000 per annum
Indian flag ships—foreign going	4800 per annum
Indian flag Home Trade & Coastal ships	2400 per annum

• RPSL audit: All RPSL companies must have an annual inspection by an approved RO. Request this inspection within two months of your RPSL license anniversary date each year. You must also renew your RPSL license within six months before it expires. Please note, there is a penalty of Rs. 3 lakh if you fail to renew your license on time.
• RPS Online Profile: Upon receiving the RPSL License, a user ID and password are issued to companies. It is mandatory to keep the profile continuously updated. All valid manning agreements and vessel documents must be uploaded for vessels where crew members are currently onboard or are proposed to join.
• Notify DG Shipping: RPSL companies must inform DG Shipping within a week of any changes in the company address, directors, or authorized signatory. Additionally, in cases of a missing crew member, crew death or disability, crew complaints, vessel abandonment, accidents, or any major information related to RPS, you must notify DG Shipping within 24 hours.
• Agreement terms and conditions: RPSL companies must ensure that all manning agreements and seafarer employment contracts comply with MLC rules or flag state regulations.

Consequences of non-compliance of RPSL License

Non-compliance with RPSL license requirements can lead to several consequences, including:

1. Cancellation of license: The DG shipping may suspend or revoke the RPSL license, leading to a halt in operations for the non-compliant agency. DG Shipping may revoke the online privileges of defaulting companies upon discovering non-compliances without prior notice. Such actions are primarily taken in cases of pending crew salaries, defaults in annual audits, complaints regarding placement charges, non-payment of compensation, issuance of FORM-1 for incorrect vessels, and similar issues.
2. Penalties and fines: The agency may be required to pay penalties and fines for non-compliance. A penalty of Rs. 3 lakh is imposed if the RPSL renewal audit is not conducted before the expiration of the RPSL license. Additionally, the bank guarantee can be invoked in cases of non-payment of crew death disability compensation or pending crew salaries. Rs. 1000/- penalty for Form 1 correction, Rs. 5000/- for vessel field corrections on RPS online profile.
3. Legal action: In extreme cases and serious violations of MS rules, non-compliance can result in legal action, including the suspension and blacklisting of directors by the Ministry of Corporate Affairs.
4. Reputation damage: Non-compliance can damage the reputation of the agency, making it difficult to attract clients and candidates. Many company directors have been blacklisted by DG Shipping in the past for their involvement in serious violations.
5. Loss of credibility: Non-compliance can result in a loss of credibility with the Directorate General of Shipping, making it challenging to obtain future licenses or approvals.
6. Financial losses: Non-compliance can lead to financial losses, including the loss of business and revenue.

It’s essential to ensure compliance with RPSL license requirements to avoid these consequences and maintain a reputable and compliant recruitment and placement services agency.

What is included in RPSL Annual Compliance Service?

Our RPSL Compliance Advisory Services provide comprehensive support to ensure your RPSL agency adheres to all DG shipping requirements. Our services include:

1. Initial Consultation and Assessment
   We begin with a thorough consultation to understand and assess your current compliance status. We identify gaps and shortcomings in your RPSL and MLC 2006 compliance, bringing these to your attention and suggesting possible remedies.
2. Operational Due Diligence Reviews
   We conduct detailed reviews of your operations to identify and address any compliance gaps.
3. Documentation Review and Preparation
   Our team ensures all your documentation, including crewing forms, formats, manning agreements, and employment contracts, are up-to-date and compliant with DG Shipping standards and MLC 2006 rules. we will help in calculating SWFS.
4. Training
   We provide training to your crewing staff on compliance requirements and best practices to ensure ongoing adherence to the latest circulars, notices, or any advisory issued by DG shipping.
5. Notifications
   We notify you when the mandatory RPSL annual and renewal audits are due, as well as the deadlines for SWFS payments and SPF. Additionally, we provide updates on the status of existing audit applications.
6. Monitoring
   Regular monitoring visits to your RPS office to ensure all records and forms are compliant with DG Shipping regulations. For outstation clients, we offer support via phone and email.
7. Ad-hoc Advice
   We are always on standby to discuss any legal matters or issues related to recruitment, providing timely advice and solutions.
8. Regulatory Updates
   We keep you informed of any changes in regulatory requirements and new guidelines or advisories issued by DG Shipping or any international maritime authority, ensuring your operations are always updated and compliant.
9. Attending Audit
   Our team attends you during audits, ensuring a smooth and successful process for RPSL annual audits, RPSL license renewals, and address change audits.
10. Legal Advisory and Opinion
    We provide regular legal advisory services, offering opinions on various matters, including international frauds and due diligence.
11. Response Drafting
    We draft responses to any notices or letters received from DG Shipping, ensuring your communications are clear and compliant.
    By engaging our RPSL Annual Compliance Service, you can be confident that your agency will remain compliant, avoiding any potential legal or regulatory issues.
    We strongly recommend utilizing our services from the outset to ensure your crewing operations are well-structured. By identifying and addressing issues early, we keep all crewing-related matters in order and up to date, preventing last-minute corrections before audits. Proper documentation is essential to protect your business from legal challenges, regardless of how you operate your crewing business.

Benefits of Choosing LegalBabu: What Makes Us Different?

At LegalBabu, we are a leading compliance consultancy for RPSL companies and recruitment sectors. Here’s what makes us stand out:

• Expertise, Experience, and Passionate Team: We don’t outsource or use self-employed staff. We employ people with professional qualifications and actively encourage continuous professional development to ensure we’re always at the top of our game. Our team comprises highly qualified professionals with over 10 years of regulatory and compliance consultancy experience.When you work with our team you’ll be in no doubt that you’re dealing with experts who are experienced and passionate about helping organisations face the same challenges as you.
• Timely and Efficient Service Delivery: We guarantee speed, proactiveness, and transparency in our services, with no hidden expenses. Our team ensures all DG shipping compliance needs are met promptly and efficiently.
• Dedicated Support and Advisory Services: We offer continuous support and legal advisory services, assisting with everything from company registration and obtaining RPSL licenses to handling government notices and crew complaints. Our support extends beyond obtaining licenses, as we keep you updated on new rules and regulations in the maritime industry.
• Consultative Best Compliance Approach: We believe our compliance approach stands out in the market for its comprehensiveness, clarity, and practicality. We simplify complex regulatory language into plain English and provide regular updates on the latest developments. Unlike others who merely tick boxes or quote rules without guidance, we offer insightful, commercially aware, and pragmatic advice. Our risk-based approach ensures we deliver proportionate, practical, and cost-effective solutions tailored to your needs.
• Positive Client Testimonials and Success Stories: With a decade of experience and a strong track record of success, LegalBabu is the largest consultancy company in India, serving 4 out of 5 companies for RPSL, MLC certification, and MTI approval. We handle RPSL, CIP, and MLC audits for over 100 shipping clients annually. Our excellent service and reputation, primarily built through client referrals, underscore our commitment to delivering outstanding results.
• Confidentiality guaranteed: Confidentiality is our top priority. We guarantee that all client information will be treated with the highest level of discretion and security, safeguarding your business interests and maintaining complete confidentiality. You can be assured that none of your ship owner details will be shared with any third party. We guarantee that your crewing issues, whether big or small, will remain confidential and will not be discussed with anyone else.
• India-Wide Presence: With a nationwide team of consultants, we offer expertise not only in regulatory compliance but also in taxation, legal matters, and licensing. We provide both onsite and remote services via video link to meet your business needs.

Please note that QMS-ISO 9001:2015 consultancy is not included in our RPSL annual compliance services. For inquiries related to QMS, please contact our help desk.

Validity: Our RPSL annual compliance services are prepaid and valid until the next RPSL audit or for one year from the payment date, whichever occurs first. To avoid any service interruptions, please renew before the current service period ends.