How Many Days’ Worth of Wages Can the Employer Withhold as Compensation? — 2M Law Office

The employer may temporarily withhold a certain amount from the seafarer’s wages as compensation for a potential claim; however, this amount is limited by law.

Short Answer

The amount that the employer or the employer’s representative may temporarily withhold from the seafarer’s wages as compensation cannot exceed 10 days’ wages.

Temporary Withholding for Compensation

The Maritime Labor Law limits the amount that the employer or the employer’s representative may temporarily withhold from the seafarer’s wages as compensation. This amount cannot exceed 10 days’ wages. The regulation provides a temporary security for the employer’s potential claim while protecting the seafarer’s wage security.

Temporary NatureThe withholding here is temporary and is for compensation. If it is understood that there is no situation requiring compensation, the withheld amount must be paid to the seafarer.

Procedure for Withholding: Installment, Refund, and Bank

The law regulates not only the upper limit but also the procedure of retention. Accordingly, the amount to be retained is deducted within 10 weeks and in equal installments. If it is understood that a situation requiring compensation has not arisen, the retained money must be returned to the seafarer. It is also stipulated that the retained amounts must be deposited in one of the national banks in the name of the seafarer within the specified period. Thus, the amount is not left to the employer’s free disposal.

Exceeding the limits of retention and deductions made from wages creates a wage receivable for the seafarer. To protect these receivables, you can refer to our article on Ship Provisional Attachment.

Difference Between Retention and Penalty Deduction

Retention for compensation should not be confused with penalty deduction. Penalty deduction is a disciplinary and definite deduction (maximum 3 days’ wages per month). Retention, on the other hand, is temporary in nature against a possible compensation claim and amounts to a maximum of 10 days’ wages. If a situation requiring compensation does not arise, the retained amount is returned to the seafarer.

Procedure of Retention (Example)

Retention is not made from wages in a single payment; it is made within 10 weeks and in equal installments. Furthermore, it is stipulated that the retained amounts must be deposited in one of the national banks in the name of the seafarer within the specified period. For example, the amount corresponding to 10 days’ wages is divided into ten weeks and deducted in equal amounts each week; thus, the seafarer’s income is not severely impacted in a single go.

Legal Basis

Maritime Labour Law No. 854, Art. 39 (Deduction for Damages; 10 days’ wages, in equal installments over 10 weeks).

Article numbers have been verified from the official full text of Law No. 854; current legislation and case law should be confirmed via mevzuat.gov.tr and UYAP before publication/filing.

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Frequently Asked Questions (FAQ)

Q: What is the maximum amount that can be withheld for damages?

A: The amount temporarily withheld from the seafarer’s wages cannot exceed 10 days’ wages.

Q: Is this withholding permanent?

A: No. It is a temporary withholding for damages.

Q: What happens if compensation is not required?

A: If there is no situation requiring compensation, the withheld amount must be paid to the seafarer.

Q: What happens if the limit is exceeded?

A: Withholding that exceeds the limit creates a wage claim for the seafarer.

Q: Is the withheld amount deducted in a single payment?

A: No. The withholding is done in equal installments within 10 weeks, and the amount is deposited into a national bank in the seafarer’s name; if compensation is not required, it is refunded.

Why is Expert Legal Support Necessary?

The Maritime Labor Law No. 854 contains unique rules that differ from the general Labor Law No. 4857 regarding the seafarer’s working hours, overtime, weekly rest, annual leave, severance and notice pay, and termination procedures. Situations such as the ship being at sea, the wage not being fixed, or the contract being made for a specific voyage can lead to loss of rights. Therefore, expert support is crucial for the correct qualification of claims and their timely submission.

2M Law Firm, provides end-to-end legal support in maritime labor law and seafarer claims, from wage and overtime claims to severance/notice pay, and even securing claims through provisional ship arrest when necessary, primarily in Istanbul, Tuzla, Pendik, Kartal, Maltepe, and Gebze.

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