Guide to employment, payroll and benefits in

Brunei Darussalam

Rivermate offers complete payroll, benefits and compliance services for

Brunei Darussalam

01. Overview

Last updated: 

August 19, 2021

Currency
Brunei Dollar
Capital
Bandar Seri Begawan
Ease of doing business
70.1
Language
Malay
Population
437479
GDP growth

02. Grow your team in

Brunei Darussalam

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Brunei Darussalam

, particularly if you don't have established local relationships. You can hire employees in

Brunei Darussalam

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Brunei, officially the Nation of Brunei, the Abode of Peace, is a Southeast Asian country situated on the north coast of Borneo's island. The nation is entirely surrounded by the Malaysian state of Sarawak, with the exception of its coastline with the South China Sea. The Sarawak district of Limbang divides it into two sections. Brunei is the only independent state entirely on the island of Borneo; the rest of the island's territory is split between Malaysia and Indonesia. Brunei had a population of 428,963 people in 2018. The Sultan is the head of state, and the Sultan's administration follows a mix of English common law and sharia law, as well as direct general Islamic traditions. Sultan Bolkiah is said to have ruled over much of Borneo at the height of the Bruneian Empire, including modern-day Sarawak and Sabah, as well as the Sulu Archipelago off the northeast tip of Borneo and the islands off the northwest tip of Borneo. They also claimed jurisdiction over Seludong, but Southeast Asian scholars believe this refers to the Indonesian settlement Mount Selurong. Maynila's historical rulers retained strong cognatic relations with the Sultanate of Brunei's ruling houses for political purposes, but Brunei's political control over Maynila is not thought to have extended to military or political rule. Intermarriage was a common strategy for large thalassocratic states like Brunei to expand their influence, as well as for local rulers like the Maynila rulers to reinforce their family claims to nobility. Brunei, a maritime state in Southeast Asia, was visited by Spain's Magellan Expedition in 1521 and engaged Spain in the Castilian War of 1578. The Bruneian Empire started to collapse in the nineteenth century. The Sultanate gave James Brooke Sarawak and installed him as the White Rajah, while the British North Borneo Chartered Company got Sabah. Brunei became a British protectorate in 1888, and in 1906, a British resident was appointed as colonial governor. In 1959, after the Japanese occupation during World War II, a new constitution was drafted. With the assistance of the British, a brief armed uprising against the monarchy was put down in 1962. On January 1, 1984, Brunei gained independence from the United Kingdom. Brunei was transformed into an industrialised country during the 1990s and 2000s, with GDP rising 56% from 1999 to 2008. It has amassed wealth as a result of its vast petroleum and natural gas reserves. Brunei is a developing country with the second-highest Human Development Index among Southeast Asian nations, after Singapore. Brunei is ranked fifth in the world in terms of gross domestic product per capita at purchasing power parity, according to the International Monetary Fund. Brunei was one of only two countries in 2011, according to the IMF, with a public debt of 0% of GDP.

04. Public holidays

05. Types of leave

Paid time off

Public holidays

Sick days

Maternity leave

Paternity leave

Parental leave

Other leave

06. Employment termination

Termination process

Termination can occur in a variety of circumstances, the most straightforward being the cessation of service. If the employment contract specifies an end or completion date for the job, service will terminate on that date. Employers and workers both have the ability to initiate termination with the necessary notice.

Notice period

For employees with less than 26 weeks of service, the notice period is one day; for employees with 26 weeks to two years of service, the notice period is one week; for employees with two to five years of service, the notice period is two weeks; and for employees with more than five years of service, the notice period is four weeks.

Severance pay

If an employee is dismissed for misconduct or his service is terminated by his employer, the total salary owed to him must be paid on his last day of employment. If this is not possible, it must be paid within three working days of the date of dismissal or termination.

Probation period

The qualifying period is equal to the duration of the employee's probationary period, which cannot exceed 90 consecutive days.

07. Working hours

General

Employees who work non-shift typically work eight-hour days and up to 44 hours per week. Workers on shifts should not work more than 44 hours per week on average over three consecutive weeks, and workdays should not exceed 12 hours. In no circumstance may a shift worker work more than 12 hours per day. All hours worked in excess of those specified in the employment contract constitute overtime.

Overtime

Anything beyond this time limit is considered overtime and is compensated at 150 percent of standard pay. An employee shall not be permitted to work more than 72 hours of overtime per month.


An employee may not work more than 12 hours per day unless the job is vital to life or security, critical to the business, or requires extended interruption.

08. Minimum wage

General

There is no national minimum wage in the country, which means that the employer and employee must agree on an amount during the hiring process. This sum should be stipulated in the employment contract.

09. Employee benefits

General

The 2009 Employment Order does not specify any mandatory perks or bonuses, but businesses are free to decide on these items at their discretion. They may provide services such as accommodation or meals. The decision to deduct expenses from employees' paychecks is also up to the employer.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Brunei Darussalam

to hire a team takes time, money, and effort. The labor law in

Brunei Darussalam

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Brunei Darussalam

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Brunei Darussalam

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Brunei Darussalam

via our Employer of Record / PEO solution.

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