Navigating the Contractual Divide: Ordinary Employment Agreements vs Sea Workers’ Contracts

4 min 34 sec January 15, 2026 (Edited)

Employment law in the Kingdom of Saudi Arabia (KSA) is primarily governed by the Labour Law (Royal Decree No. M/51 dated 23/8/1426H, corresponding to 27/9/2005G, as amended) and its Executive Regulations. In recent years, however, the maritime sector has been placed under a distinct regulatory framework through the Regulations and Procedures for Maritime Employment and Certification and the prescribed standard-form sea workers’ contract.

At first glance, both regimes share the basic purpose of regulating employment and protecting workers. On closer examination, they diverge significantly in contract formality, working hours, termination protections, repatriation, welfare, and dispute resolution. These differences directly shape how organisations recruit, manage, and safeguard their workforce. This article looks at how the two regimes differ in structure, obligations, and practical consequences for employers and workers.

Distinct regulatory foundations

Ordinary employment contracts fall under the Labour Law and its Executive Regulations. By contrast, sea workers’ contracts operate under a dedicated maritime framework applying to Saudi-flagged vessels and foreign ships in Saudi waters. This regime incorporates global maritime standards and imposes requirements including safety certifications, medical fitness, and seafarer service records for Saudi nationals working outside national maritime zones. Determining which regime applies is the first step in forming a compliant contractual relationship.

Form and formalities

Under the Labour Law, contracts may be written and will deem to exist even if unwritten, provided essential terms are provable. Maritime rules require a stricter structure: the contract must be written, bilingual, executed in triplicate, and uploaded to the approved portal. In addition, the contract and all disciplinary or termination actions must be recorded in the ship’s logbook and, where relevant, endorsed by a Saudi consular representative. These records carry evidential weight and make the maritime contract a regulatory instrument rather than simply a private agreement.

Scope and minimum age

The Labour Law applies broadly, subject to limited exclusions. Maritime rules apply specifically to workers serving on board vessels and exclude naval and pleasure-craft crews. Saudi nationals may not work on ships navigating outside the KSA’s waters, unless registered with the competent maritime authority.

Minimum working age also differs. Onshore workers must be at least 15, with exceptions for training. At sea, the minimum age is 18, with limited training allowances for 16- and 17-year-olds, subject to supervision and mandatory safety training. This reflects the hazards of marine work.

Duration and termination

While the Labour Law permits fixed-term and indefinite contracts, maritime contracts may be tied to a voyage, multiple voyages, or a charter period. They include specialised termination rules.

• A sea worker may request repatriation after 11 continuous months of service.
• If a contract expires during a voyage, it automatically continues until the vessel reaches the first Saudi port.
• A seafarer cannot be dismissed in a foreign port without written approval from the Saudi diplomatic mission; failure to secure approval renders the termination unlawful.
• Termination must be logged in the ship’s journal.
• Additional maritime-specific termination grounds apply, such as the ship becoming unseaworthy or loss of the vessel.

These rules reflect the operational nature of maritime employment, combined with safeguards that have no equivalent in the Labour Law.

Working time and rest

Labour Law limits working hours to eight per day, or 48 per week. Maritime rules recognise continuous voyage demands: maximum working hours are 14 hours within 24 hours and 72 hours within seven days, with mandatory rest periods of 10 hours within 24 hours and six hours within any 12 hours.

Rest and work hours must be logged. Authorities may inspect logbooks to verify compliance, and breaches can result in labour penalties or detention of the vessel — significantly more immediate consequences than typical onshore violations.

Wages, overtime, and financial security

Both systems require wage protection and monitoring through the Wage Protection System. Maritime rules introduce additional layers.

• Monthly wage statements must be issued.
• Overtime attracts a 50% premium unless compensated with rest.
• Shipowners cannot reduce wages if the voyage is shortened due to their own actions.
• If a voyage is extended or delayed due to the shipowner, pay must increase proportionately.
• A financial guarantee covering four months of wages and repatriation costs must be maintained.
• If a seafarer dies during a voyage, heirs are entitled to wages up to the date of death or the full voyage wage if remuneration is voyage-based, in addition to any profit share.

Shipowners must also maintain financial coverage for medical care, repatriation, and wage liabilities to prevent crew abandonment, an issue of international concern. This financial security requirement is unique to maritime employment and absent from the general Labour Law.

Leave, repatriation, and welfare

Under the Labour Law, annual leave starts at 21 days, rising to 30 after five years. Maritime workers accrue 30 days per year, or 2.5 days per month for voyage-based contracts.

If a contract ends abroad, the employer must cover full repatriation costs, including transport, food, and personal belongings. The shipowner must also fund medical treatment for any injury or illness arising during service (subject to limited exceptions for wilful misconduct).

In case of death, the employer must arrange and fund burial in the seafarer’s home country and deposit outstanding entitlements with the competent authority. If the death occurs while defending the ship, passengers, or cargo, heirs receive an additional sum equal to three months’ wages or the voyage wage.

Maritime regulations also impose detailed welfare standards. Ships must provide suitable accommodation, food, and medical supplies. Depending on the voyage length and crew size, a qualified doctor may be required on board. Living conditions must be inspected regularly, with records maintained in the official logbook.