Severance Pay and Marine Employee’s Right to Arrest their Employer’s Vessel

Employees who are owed wages for working on a vessel hold a uniquely powerful position in their claims for severance because severance claims give rise to a maritime lien. A maritime lien is a special legal right that allows the employee to claim a priority for his severance pay over other debts that the employer owes in respect of the vessel. In other words, employees owed severance pay can sue the employer and the vessel, arrest the vessel, require the owner to post bail (money) in the amount of the employee’s severance claim before the vessel can be released from arrest, and where there are multiple creditors pursuing the employer, the maritime lien entitles the employee to be paid in priority to other creditors including prior registered mortgage holders. This is an unusual and powerful right that terminated employees in most other (non-employee) occupations do not have. It must be used carefully but should not be overlooked.

At LaW we are experienced in pursuing wage claims against vessel owners. Call us today or email at info@leaguelaw.com for a free consultation. We care. 250-888-0002.