Navigating Non-Resident Employment in Sarawak and Sabah: A Comprehensive Guide

Understanding the Legal Landscape

Hiring non-resident employees in the states of Sarawak and Sabah requires careful consideration of specific labor laws. To ensure compliance and avoid potential legal issues, it’s essential to familiarize yourself with the key regulations outlined in the Labour Ordinance Sarawak (Act A1237) and the State of Sabah Labour Ordinance (Sabah Cap. 67).

Key Provisions for Non-Resident Employment

Licensing Requirement: Employers must obtain a license from the Director of Labour before hiring any non-resident employee.
Priority for Resident Employees: Employers should prioritize hiring local residents over non-resident employees.
Information and Return Filing: Employers must provide the Director of Labour with details of any non-resident employee within fourteen days of hiring.
Complaint Investigation: The Director of Labour has the authority to investigate complaints from both resident and non-resident employees regarding discrimination or unfair treatment.
Protection of Resident Employees: Employers are prohibited from terminating a resident employee’s contract to hire a non-resident employee.
Redundancy and Retrenchment: In the event of redundancy, employers must prioritize the retention of resident employees over non-resident employees.

Key Takeaways

Prioritize Local Talent: Employers should prioritize hiring local residents whenever possible.
Obtain Necessary Licenses: Ensure that all required licenses and permits are obtained before hiring non-resident employees.
Comply with Reporting Requirements: Timely submission of information and returns to the Director of Labour is crucial.
Protect Employee Rights: Avoid discriminatory practices and ensure fair treatment for all employees, regardless of their residency status.
Seek Legal Advice: Consult with legal experts to ensure compliance with all relevant laws and regulations.

By understanding and adhering to these regulations, employers in Sarawak and Sabah can successfully navigate the complexities of non-resident employment and avoid potential legal pitfalls.

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