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Employer of Record in Brunei
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Brunei Fast Facts
Employment Law in Brunei
Contracts
In Brunei, employment contracts can be fixed-term or indefinite, per the Employment Order of 2009. Indefinite contracts must include benefits such as paid annual leave, sick leave, and maternity leave. Fixed-term employees gain equal rights to indefinite employees after 180 days.
Termination and notice periods
In Brunei, labor laws require employers to provide written notice of termination or pay in lieu of notice. The Employment Order of 2009 outlines minimum notice periods based on the worker's length of service, ranging from one day for less than 26 weeks of service to four weeks’ notice for five years or more of service.
There is no statutory severance payment in Brunei; however, additional compensation may be provided based on employment contracts or collective agreements. As your employer of record (EOR) in Brunei, we can assist you in managing employee terminations by providing legal guidance and a personalized process to ensure compliance with national labor standards and minimize legal risks.
Probation periods
In Brunei, probation periods are explicitly addressed in local law, generally set at 90 days for initial employment, with a possible extension of an additional 90 days, as specified in employment contracts.
Working hours and overtime
In Brunei, the standard workweek is typically Monday through Friday, with eight hours per day, totaling 40 hours per week. Employees are prohibited from working for more than eight hours a day or 44 hours per week without appropriate compensation.
Any work beyond eight hours a day is considered overtime, and employees are entitled to additional compensation of at least 50% over their regular hourly rate. For work performed on rest days or public holidays, the overtime pay rate is higher, as specified by the Employment Order 2009.
Taxes
In Brunei, withholding tax is not applicable as there is no personal income tax, so employers do not deduct tax from salaries to employees.
Employer payroll contributions
Employers are legally required to pay into two funds under Bruneian labor laws.
- Employee trust fund (TAP): Employers contribute 5% of an employee’s basic salary to TAP, supporting retirement savings.
- Supplemental contributory pension (SCP): Employers contribute an additional 3.5% of an employee’s basic salary to SCP.
Disclaimer: The information provided on or through this website is for informational purposes only and does not constitute legal or professional advice. Safeguard Global does not make any representations or warranties, and expressly disclaims any liability arising from or concerning the information contained herein, including the lost essence, interpretation, accuracy and/or completeness of the information and language translation. Laws and regulations may change and interpretations may vary. You are encouraged to seek professional or legal advice to address any issues, questions or matters arising from the information contained herein.
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