Labor law in Brunei

The 2009 employment order (Employment Order 2009) forms the central statutory basis for private employment relationships in Brunei and is consolidated as the Employment Act (Employment Act Cap. 278). A contract may be made orally or in writing. If the fixed term exceeds one month, or if specified piecework is expected to last more than one month, the contract must be in writing and signed by both parties. It should clearly state the duties and rights, employer, workplace, employee’s identity, remuneration, working hours, leave and termination of employment. Persons under 16 cannot enter into such an employment contract; 16- and 17-year-olds may work only in employment approved by the Labour Commissioner (Commissioner of Labour) and without danger to their physical or moral development. The wage period may not exceed one month. Regular wages must be paid no later than seven days after the end of the wage period, and overtime pay no later than 14 days afterward. When the employer terminates employment, wages that are due must be paid on the termination date or, if a rest day or public holiday intervenes, within three days. Wage deductions are permitted only when authorized by law, a court or a ministerial regulation. A statutory minimum wage does not apply to all businesses: since 1 April 2025, it is at least 500 BND per month for covered full-time positions and 2.62 BND per hour for covered part-time positions. It covers seven industry classes, including banking and finance, information and communication technology, medicine and dentistry, private higher education, tourism and accommodation, and security services; the specific company list and statutory exemptions determine whether it applies. A higher wage agreed in the contract remains payable. For employees who do not work shifts, working time is limited to eight hours per day or 44 hours per week. For shift work, the average may not exceed 44 hours per week over a three-week period; a daily limit of twelve hours also applies. Overtime is generally limited to 72 hours per month and must be paid at least at 1.5 times the hourly rate. Including overtime, daily working time should not exceed twelve hours. Employees receive one weekly rest day, usually Sunday or a day designated by the employer; the schedule should be fixed before the beginning of the month. Work on a rest day is permitted only in cases limited by law or for continuous shift work and triggers additional pay under the statutory rules. Brunei has eleven public holidays each year; Islamic holidays vary according to the calendar. Paid annual leave begins after three months of employment with seven days in the first twelve-month year and then increases by one day for each further twelve-month year, up to a maximum of 14 days. For shorter employment periods, leave is calculated proportionately for fully completed months. Leave should generally be taken within twelve months after the relevant year of service; otherwise it may lapse. After six months of employment and a medical examination paid for by the employer, employees are entitled to 14 days of outpatient sick leave or up to 60 days of hospitalization, including the outpatient portion, if an approved doctor certifies incapacity for work. For citizens and persons with permanent resident status, the law provides a total of 15 weeks of maternity leave, including two weeks before and 13 weeks after childbirth. If the conditions are met, including six months or 180 days of employment, employer contributions to the employee social-security scheme (SPK) and a lawful marriage, 13 weeks are paid; the final two weeks remain unpaid. For foreign employees, the total is nine weeks, including four weeks before and five weeks after childbirth, of which eight weeks are paid and one week is unpaid. In the case of an incomplete pregnancy from week 24 onward, eight paid weeks may apply. The Workplace Safety and Health Act (Workplace Safety and Health Act Cap. 277) protects employees at private and government workplaces. Employers or responsible principals must assess risks, provide safe working procedures and information, and retain records for at least three years. The risk assessment must be reviewed at least every three years and after an accident or a significant change. Work-related injuries, occupational diseases and deaths may give rise to compensation under the Workmen's Compensation Act (Workmen's Compensation Act Cap. 74). The employer must report a death or incapacity lasting more than three consecutive days to the commissioner within ten days. Foreign employees are also subject to requirements concerning hygienic accommodation, drinking water, sanitary facilities and health insurance of at least 100,000 BND for medical treatment and surgery during employment; outpatient treatment may be excluded under the statutory rules. An employer may not retain an employee’s passport without statutory authority. Foreign employees need a licence from the commissioner and typically a foreign-worker permit (Foreign Worker License), a valid Work Pass, an approved employment agency, JobCentre-Brunei clearance (JobCentre-Brunei), the applicable Local/Foreign Workforce Ratio or NTA evidence, qualification documents, a passport, medical examinations and a contract. Depending on the case, this may also involve labour approval (LPA), a Work Pass Recommendation such as BUR500 or BUR555, and security in the form of cash, a bank guarantee or an insurance guarantee. Employers may not change the occupation, job title or workplace outside the approved licence and pass framework. Transfer, renewal and cancellation of the authorization follow formal procedures; a new company application may be examined within one week, while further checks depend on the case. Employees may be represented through trade unions under the Trade Unions Act (Trade Unions Act Cap. 128); at least seven founding members are required for registration. Collective agreements and collective representation are possible. The Trade Disputes Act (Trade Disputes Act Cap. 129) provides for investigation or conciliation by the commissioner in collective disputes and, where appropriate, referral to the minister, a tribunal or arbitration. Statutory restrictions apply to strikes and lockouts; no direct equivalent of the German works council is documented for Brunei. For individual problems, the labour enforcement division (Labour Enforcement Division) of the Department of Labour accepts complaints from employees and employers. According to the official guidance, the practical process begins with a police report and personal appearance at the labour enforcement division or its nearest branch; representation by third parties is not provided there. Typical documents include the police report, identification, passport, contract, work or time cards and other evidence. The authority handles, among other matters, wage, leave, overtime, licensing and foreign-worker-rule violations and may initiate enforcement or criminal proceedings. A termination for misconduct requires a proper inquiry. Against a termination without valid reason or justification, an employee may apply in writing to the minister within one month; reinstatement with back pay or compensation may be ordered. The notice period is governed first by the contract. If there is no contractual provision, it is one day for less than 26 weeks of employment, one week from 26 weeks up to less than two years, two weeks from two up to less than five years, and four weeks from five years onward. Termination must be in writing; payment instead of working during the notice period may be permitted. Under the Retirement Age Order (Retirement Age Order 2010), the ordinary retirement age is generally at least 60, although exceptions may include fixed-term projects, Employment Pass holders, employment of up to 30 hours per week, and students and apprentices. Severance or other termination benefits may depend on separate statutory or contractual rules.