Global HR Compliance in Brunei

Brunei combines a centralised labour framework with strict immigration controls and minimal public guidance, making it difficult for international employers to plan workforce engagement without local insight. Companies expanding into the market often face structural challenges: direct employment isn’t possible without registration, commission-based arrangements fall into grey zones, and immigration processes are opaque without on-the-ground coordination.

This guide is built for companies hiring in Brunei to serve local clients, access specialised talent, or deploy regional teams. It outlines what’s legally required to engage, pay, and offboard staff, and where risks typically arise, particularly when working without a permanent establishment.

If direct employment isn’t viable, Acumen International can provide the legal infrastructure to employ your personnel compliantly in Brunei, handle payroll, and manage work authorisation through its Employer of Record model.

Hiring and Firing Workforce in Brunei Guide

Employment Contracts

All employment agreements must be in writing for engagements longer than six days. Contracts may be structured around:

• a fixed period not exceeding one month
• a specific number of days not exceeding 26
• the completion of a defined task capable of being completed within one month

Unless either party explicitly terminates the agreement, fixed-term contracts under one month are presumed renewed on the same terms if work continues. Verbal terminations have legal effect but must meet procedural requirements.

Working Hours and Rest

For non-shift workers, the standard working limit is eight hours per day and forty-four hours per week. For shift workers, the average may not exceed forty-four hours weekly over a continuous three-week period. The maximum daily working time is twelve hours.

Employees are entitled to one rest day per week. This rest day typically runs from midnight to midnight and is usually assigned to Sunday unless an alternative day is communicated in advance. For shift workers, the minimum rest period is thirty continuous hours.

Overtime Regulations

Employees may not exceed twelve hours of total work in a day, including overtime, with limited exceptions for emergency, national interest, or public safety circumstances. Shift workers may not exceed this cap under any circumstance.

All overtime must be paid at 1.5 times the hourly basic rate. Payment must be made within fourteen days following the end of the relevant salary period. Employers must track and document overtime hours to remain compliant.

Annual Leave

Brunei uses a tenure-based leave structure:

• 1 year of service: 7 days
• 2 years: 8 days
• 3 years: 9 days
• 4 years: 10 days
• 5 years: 11 days
• 6 years: 12 days
• 7 years: 13 days
• 8 years or more: 14 days

Leave must be taken within twelve months following the end of the leave year. If unused, the balance is forfeited. No payout is required unless the employment relationship ends. Employers may deny annual leave if an employee is dismissed for misconduct or is absent without permission for over twenty percent of the working days in any given month or year.

Sick Leave

Eligible employees are entitled to fourteen days of paid outpatient sick leave per year, and up to sixty days of hospitalisation leave, inclusive of outpatient days.

To qualify, the employee must:

• have completed at least six months of continuous service
• provide a medical certificate from a company-appointed doctor, or, where unavailable, from a government hospital or authorised clinic
• notify the employer of the illness within forty-eight hours

Sick leave must be properly documented and administered in accordance with local health certification protocols.

Maternity Leave

Female employees who are citizens or permanent residents are entitled to fifteen weeks of maternity leave if they meet the following:

• lawfully married
• employed with the same company for more than 180 days
• registered under the government’s TAP system for social security

Maternity leave is structured as:

• two weeks before childbirth
• thirteen weeks after childbirth

Employers are responsible for paying wages for the first eight weeks. The next five weeks are reimbursable by the government but must be advanced by the employer. The final two weeks are unpaid. There is no legal provision for statutory paternity leave as of 2025.

Social Contributions and Minimum Wage

Brunei has no statutory minimum wage. Compensation must be contractually determined. There are no legal guidelines for standard salary ranges outside collective or public-sector contexts.

For Bruneian citizens and permanent residents, employers and employees are required to contribute to two funds:

• TAP: five percent from the employer and five percent from the employee
• SCP: three and a half percent each from employer and employee

These contributions are not mandatory for foreign employees unless specified by internal policy or contractual arrangement.

Probation Period

Brunei law does not regulate probation periods. Employers may define probationary terms in the employment contract. Statutory protections such as working time limits, sick leave, and paid holidays still apply during probation if eligibility conditions are met.

Termination and Notice

Termination may occur through:

• expiry of the contract term
• completion of the contracted task
• mutual agreement or notice by either party
• dismissal for cause or material breach

Where no contractually agreed notice period exists, statutory minimums apply:

• less than 26 weeks of service: one day
• 26 weeks to less than two years: one week
• two to less than five years: two weeks
• five years or more: four weeks

The same notice period must apply to both parties. Termination may also occur via payment in lieu of notice. Notice can be delivered verbally or in writing, and the day on which it is given is included in the calculation of the notice period.

The legal maximum notice period is one month unless otherwise agreed. For domestic workers, the maximum statutory notice is fourteen days.

Work Permits and Immigration Compliance

All foreign nationals require valid work permits sponsored by a locally registered employer. Employers must secure approvals from the Labour Department and Immigration authorities prior to employment. Brunei enforces sector-specific quotas and national localisation policies. Documentation must be complete and submitted in proper sequence. Immigration non-compliance may result in work permit revocation, penalties, and blacklisting.

Inspections and employer audits are common. Companies must maintain updated employee records, valid contract copies, and immigration files accessible to authorities upon request.

Enforcement and Risk

Labour disputes are adjudicated under the jurisdiction of the Labour Court. Brunei has no statutory severance regime. Termination payouts are determined by contract or mutual settlement, unless the dismissal is unlawful.

Employers without a permanent legal presence in Brunei must ensure all local arrangements comply with immigration, employment, and tax requirements. Contracts must be clear, enforceable under local law, and consistent with actual payment and operational structures. Employment terms should be available in Malay or bilingual format where necessary to avoid ambiguity during audits or disputes.

Acumen International: Global Employment Services in Brunei

Acumen International: Global Employment Services in Brunei

Service Scope

• Serve as legal employer of record for local and foreign personnel
• Enable hiring without the need to establish a local entity
• Support both short-term assignments and ongoing employment

Employer Responsibilities Managed by Acumen

• Issue locally compliant employment contracts
• Administer monthly payroll and salary disbursement
• Calculate and submit TAP and SCP contributions for eligible workers
• Maintain employment records in line with statutory requirements
• Handle termination processes, including notice and final payment

Immigration Support

• Sponsor Employment Passes for foreign nationals
• Coordinate with Labour and Immigration authorities
• Manage renewals, cancellations, and exit formalities

Risk and Compliance

• Apply local employment and immigration rules to all engagements
• Take on legal liability for compliance, audits, and inspections
• Provide in-country infrastructure where no legal entity exists

Use Cases

• Project-based or time-bound hiring in Brunei
• Local employment for client-facing roles
• Regional workforce execution without permanent establishment risk.