(1) Introduction

 The employment of a non-resident employee in Sabah is subject to the provision of Section 118 of the Labour Ordinance (Sabah Chap. 67). Every employer in the state who employs non-resident employee is required to obtain a license from the Director of Labour, Sabah as stipulated in the stated provision quoted below:-

“Section 118 : No person shall employ any non-resident employee unless he has obtained from the Director a License to Employ Non-Resident employee.”

(2) Features of a suitable employer

a)       The business operation carried out by the applicant (employer) must be legal and supported by strong financial background;

b)       The applicant (employer) has not committed any offence in respect of any contravention of any of the provisions of the labour laws or other related legislations;

c)       The applicant (employer) shall insure all the non-resident employees in his employment under the Workmen’s Compensation Scheme as stated under the Workmen’s Compensation Act 1952;

d)       The service of the non-resident employees intended to be employed is genuinely required by the applicant (employer); and

e)       The rate of wages offered to the non-resident employees must be similar to the rate of wages offered to local employees.

(3) Economic Sector and Category of Employment Permitted

         i.            Housemaid

        ii.            General worker in sector:-

a.        Plantation

b.       Agriculture

c.        Breeding

d.       Fishery

e.       Manufacturing

f.         Construction

(4) Nationalities of foreign employee allowed

         i.            Indonesian nationality

        ii.            Filipino nationality


(5) Duration of License to Employ Non-Resident Employee

Valid for a period of one (1) year only and renewable on a year to year basis.


(6) Employment contract for Non-Resident Employee

 Every non-resident employee employed must enter and sign an employment contract with his employer for duration of one year which is extendable on of a year to a year basis.


(7) Protection under an approved Insurance Scheme

Every employer shall insure each and every non-resident employee (except those employed as domestic servants) under the Workmen’s Compensation Scheme provided for under the Workmen’s Compensation Act 1952.




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