Nautical Term: GTEE
Definition of GTEE
GTEE, or Guarantee to Trautees or Equivalents, is a term used in maritime law to refer to a guarantee given by a shipowner or charterer to the master, officers, or crew members, assuring them of payment of wages and other entitlements under their employment contracts, even if the principal employer becomes insolvent or otherwise unable to fulfill its obligations under the employment contracts.
For instance, suppose a shipping company hires a master and a crew for one of its cargo vessels. The employment contracts stipulate that the shipping company will pay the master and the crew their wages and other entitlements on a regular basis. However, the shipping company encounters financial difficulties and becomes unable to pay the wages and other entitlements to the master and the crew. In such a situation, the master and the crew may approach the shipping company’s principal guarantor, who may be another shipping company or a financial institution, and request that the guarantor honors its guarantee and pays the wages and other entitlements to the master and the crew. The master and the crew may also seek legal remedies against the shipping company and the guarant
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