There are no minimum wage requirements on local or foreign workers under Brunei Darussalam’s Employment Order, 2009. Wages are typically set by mutual agreement between employers and employees.
However, with the recent announcement by the Minister of Home Affairs during the dialogue session with the Legislative Council members, Brunei is expecting a cap of BND1,500 on agency fees.
Prior to the announcement, the cost to employ foreign workers through agents can reach between BND1,800 to BND3,300. These costs normally include employment visas, medical examinations, airfare, workmen’s compensation insurance policies, and other unspecified service charges.
The announcement by the Minister of Home Affairs regarding the possible existence of agency fees marks the first time the government has made a policy to govern agency fees in Brunei. This announcement is also a landmark development in the country as it indirectly protects foreign workers and their employers.
With this transparency, future employers now know the actual costs associated with bringing in foreign workers. It is also the government of Brunei’s intention to regulate employment of foreign workers to ensure that they will not be subject to human trafficking and exploitation.
If you have any questions or require additional information, please contact Mohamad Rozaiman Abdul Rahman or the ZICO Law partner you usually deal with.
This alert is for general information only and is not a substitute for legal advice.