Navigating War Risk Compliance: Assessing Crew Compensation and Safety Mandates in the Strait of Hormuz and Surrounding Waters

In response to a significant rise in compliance queries from maritime operators over recent weeks, the Emirates Maritime Law Association (EMLA) has conducted a comprehensive review of war risk obligations and crew entitlements within the Arabian Gulf, Strait of Hormuz, and Gulf of Oman. These inquiries have centered on critical issues such as war risk, hazard pay obligations, repatriation rights, the applicability of International Transport Workers Federation (ITF) and International Bargaining Forum Compliance (IBF) designations, and the complex interaction between Flag State Seafarer Employment Agreement (SEA) obligations, P&I club requirements and national advisories. To address these concerns, EMLA has engaged extensively with its professional members’ network and have complied below the feedback received, with particular thanks to Mr. Maxime Bregeon of ASM Yachts, Mr. Anup Khan, and Mr. Shailesh Bildikar of Eships for their invaluable contributions.

In consideration of the current situation, our analysis notes a broad regulatory spectrum, including Flag and Safe Manning Certificates, the Maritime Labour Convention (MLC), national manning requirements, and specific instruments such as JWC Circulars, JMIC Updates (which while not directly related to crew matters, should be considered as these relate more  to war risk insurance policies), and the DMW Advisory for Filipino crew. Based on this review and direct engagement with relevant maritime authorities, EMLA has compiled the following findings to assist the industry in maintaining both legal compliance and the safety of seafarers.

1.       DMW Advisory No. 11 (Philippines)

The Department of Migrant Workers (DMW) under DMW Advisory No. 11 (Series of 2026), the (Persian) Arabian Gulf, Strait of Hormuz, and Gulf of Oman have been designated as a Warlike Operations Area (WOA) under Designation 8. This specific designation, currently effective from 06 March 2026 to 20 March 2026 and subject to extension, applies broadly to all vessels whether they are underway, at anchor, or berthed within the region.

In regard to Filipino seafarers deployed under Philippine Overseas Employment Administration (POEA) contracts, this designation mandates a comprehensive set of benefits that constitute regulatory requirements rather than commercial considerations, overriding any existing Collective Bargaining Agreement (CBA) status. DMW has clarified that this applies These entitlements include a war risk bonus equal to 100% of the basic wage payable for a minimum of five days plus  per day, if longer,  and a right to refuse sailing into the area. In the event a seafarer exercises this right, the company is obliged to provide repatriation at its own expense along with compensation equivalent to two months’ basic wage upon such refusal. Additionally, vessels operating within this jurisdiction are required to maintain a mandatory ISPS Level 3 security posture to ensure the safety of the crew in these high-risk zones.

2.       Cayman Islands Flag Position

In contrast to national mandates, the Cayman Islands Flag position reflects a more traditional flag-state approach centered on the expansion of High Risk listed Areas under JWC Circular JWLA-033 which only applies to war risk insurance policies. While the Cayman registry acknowledges the right to crew repatriation without penalty when a vessel enters these zones, it has not expressly confirmed danger pay as a statutory requirement under its own legislation. Instead, the payment of additional wages for seafarers operating within war zones is characterised as being consistent with industry practice rather than a legal mandate.

This stance creates a significant divergence between flag-based interpretations, which typically focus on the act of proceeding to a war zone, and the broader DMW application that triggers obligations even while a vessel is berthed or at anchor. Furthermore, despite these operational challenges, Minimum Safe Manning requirements remain strictly in force, and operators are reminded that no reduction in crew levels is permitted without formal, prior approval from the administration.

3.       Maritime Labour Convention Framework

The overarching international framework provided by the Maritime Labour Convention (MLC 2006, as amended) establishes a clear right to repatriation for seafarers in instances where a vessel is proceeding to a war zone without their express consent. However, it is essential to note that the MLC does not itself prescribe a mandatory war risk bonus or specific hazard pay. Instead, compensation structures remain primarily contractual, governed by the individual Seafarer Employment Agreement (SEA) or a Collective Bargaining Agreement (CBA) rather than being a statutory requirement under the convention. In the current climate, operational compliance is increasingly driven by national overlays, such as the DMW mandates, rather than direct amendments to the underlying MLC obligations.

4.       United Arab Emirates’ Position

As of the date of this article, in regard to the UAE’s domestic legal position, the Emirates Maritime Law Association has noted that there are currently no specific provisions under UAE Labour Law that mandate the payment of war risk or hazard bonuses. To ensure the highest level of accuracy for our members, we have engaged directly with the UAE Maritime Administration, which has verified that currently no such statutory requirements exist under current national legislation. Consequently, while operators must remain mindful of international contracts and specific national advisories for foreign crews, there is presently no overarching UAE legal mandate imposing war risk pay obligations.

5.       International Transport Workers Federation / International Bargaining Forum Compliance

Regarding ITF/IBF Compliance, the International Bargaining Forum (IBF) maintains a list of designated risk areas that establishes a strict hierarchy of zones, each carrying distinct legal consequences for seafarer benefits and operational rights. These categories are clearly distinguished as the IBF Warlike Operations Area (WOA), the IBF High Risk Area, and the IBF Extended Risk Zone (ERZ). A fundamental distinction between these designations is the seafarer's right of refusal; while crew members possess a right to refuse sailing into areas designated as Warlike Operations or High Risk, they do not have the same right of refusal for an Extended Risk Zone.

Specific geographical data, illustrated in image below and Chart 5, highlights how these designations apply to key regional ports:

Sohar (Warlike Operations Area): Per IBF Point 8 and the coordinates detailed in Chart 5, this zone encompasses the Persian Gulf, Straits of Hormuz, and Gulf of Oman. Seafarers are entitled to a bonus equal to their basic wage, payable for a minimum of five days plus a per-diem rate for any stay exceeding that period. They also receive doubled compensation for death and disability and maintain the right to refuse sailing into the area. Such refusal triggers repatriation at the company's expense and compensation equivalent to two months' basic wage. It is formally recommended that ship operators implement enhanced security arrangements equivalent to ISPS Level 3.

Muscat (Extended Risk Zone): Per IBF Point 9 and Chart 5, this area in the Gulf of Oman is defined from the Ra’s al Hadd light on a bearing of 035 degrees to reach the limiting latitude of 24° 00′N. For operations in this zone, a war risk bonus equal to the basic wage and doubled death and disability compensations are only applicable specifically on the day a vessel is attacked. Operators are advised to maintain an increased Best Management Practices (BMP) level.

The Emirates Maritime Law Association remains committed to monitoring this fluid situation and will circulate any further updates regarding the applicability of the designated risk areas. We welcome continued feedback and commentary from relevant departments and industry stakeholders to ensure the ongoing safety and security of seafarers in the region. We further recommend that Owner’s/Operators closely coordinate with their Vessel Flag, Insurers, P&I clubs and Manning agencies for more contemporaneous advice on this topic.

Should you require further clarification or have specific queries regarding these compliance findings, please do not hesitate to contact EMLA via email at info@emla-uae.com. Further details of which can be found at https://www.emla-uae.com/contact-us