Article 176 of the Saudi Labor Law
المادة 176 من نظام العمل · الباب الحادي عشر: عقد العمل البحري
If a seaman's pay is a share of profits or of the ship's freight, he gets no compensation if the voyage is canceled and no increase if it is delayed, unless the shippers caused the delay, in which case the shipowner compensates him.
Official text (Arabic)
This article has not been amended since the law was issued.
إذا حدد الأجر بحصة من الأرباح أو أجر السفينة فإن البحار لا يستحق تعويضًا في حالة إلغاء الرحلة، ولا زيادة في الأجر عند تأجير الرحلة أو إطالتها، أما إذا كان التأخير أو الإطالة ناشئًا عن فعل الشاحنين استحق البحار تعويضًا من المجهز.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 176 explained in plain English
This article regulates a special situation in the maritime work contract: the case of the seaman who does not receive a fixed wage but whose pay is set as a share (a percentage) of the voyage's profits or of the ship's freight (what the ship collects for carrying goods). In this arrangement the seaman's income is tied to the result of the voyage itself, so the Law set rules that differ from those for fixed wages.
The article establishes three rules:
- Canceling the voyage: if the voyage is canceled, the seaman is not entitled to compensation for it, because his pay is tied to the profits or freight of a voyage that did not take place.
- Delaying or prolonging the voyage: if the voyage is delayed or lasts longer than expected, the seaman has no right to claim an increase in his pay because of that.
- The exception: if the delay or prolongation arose from the act of the shippers (the owners of the goods carried), the seaman is entitled to compensation, which the shipowner, the party that equips and operates the ship and is the employer in the maritime work contract, is bound to pay.
The position of this article becomes clear from the two neighboring articles:
- Article 175 protects the seaman from a reduction in his pay if the voyage is shortened for any reason, for the duration of a single sea voyage.
- Article 177 provides that the seaman is entitled to his pay up to the day of the incident if the ship is captured, sinks or becomes unfit for navigation.
Article 176 deals with the other side: when the seaman cannot claim additional sums, which is when his pay is a share of profits or of the ship's freight. The article does not specify the amount of compensation due in the case of the shippers' act or how it is calculated, so reference is made to the agreement and to what the competent authority decides in a dispute. A seaman who believes his voyage was delayed because of the shippers should document that and consult a lawyer specialized in labor cases to assess his position.
Practical example
Salem contracted with a shipping company in Jeddah to work as a seaman on a cargo ship, with his pay being 2% of the ship's freight for each voyage. The first voyage was canceled before it set out, and Salem claimed compensation, but Article 176 gives him no compensation in this case because his pay is tied to the freight of a voyage that did not take place. On a later voyage the ship was delayed in port by an extra 10 days because the goods' owners were late in delivering their cargo; here Salem has no right to claim an increase in his percentage, but because the delay arose from the act of the shippers, he is entitled to claim compensation from the shipowner (the company operating the ship).
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Active contributorFrequently asked questions about Article 176 of the Saudi Labor Law
Is a seaman entitled to compensation if the voyage is canceled and his pay is a share of profits?
No. Article 176 expressly provides that a seaman whose pay was fixed as a share of profits or of the ship's freight is not entitled to compensation if the voyage is canceled.
Does a seaman's share of profits increase if the voyage takes longer?
No. A seaman is not entitled to an increase in his pay when the voyage is delayed or prolonged if his pay is a share of profits or ship's freight, unless the delay was due to the shippers' act.
When is a seaman entitled to compensation for a delayed voyage, and who pays it?
The seaman is entitled to compensation if the delay or prolongation arose from the shippers' act, and the shipowner is bound to pay this compensation. The article does not specify its amount.
What is the difference between Article 176 and Article 175 of the Labor Law?
Article 175 prevents a reduction in the seaman's pay if the voyage is shortened, for a single voyage, while Article 176 concerns one whose pay is a share of profits or of the ship's freight, and prevents him from claiming compensation for cancellation or an increase for delay, except because of the shippers' act.
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The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.