Licence required to employ Non-Residents in Sabah and Sarawak
Following the introduction of the Labour (Licence to Employ Non-Resident Employee) (Sabah) Rules 2026. (“Sabah Rules”) and the Labour (Licence to Employ Non-Resident Employee) (Sarawak) Rules 2026. (“Sarawak Rules”) (collectively, the “Rules”), employers are now required to obtain a Licence to Employ Non-Resident Employee (“Licence”) from the Director of Labour of the relevant East Malaysian State before hiring employees from outside that State, effective 15 February 2026.
The Rules outline the application process, the conditions of application, and the conditions attached to the issuance of a licence. Following the introduction of the Labour (Licence to Employ Non-Resident Employee) (Sabah) Rules 2026. (“Sabah Rules”) and the Labour (Licence to Employ Non-Resident Employee) (Sarawak) Rules 2026. (“Sarawak Rules”) (collectively, the “Rules”), employers are now required to obtain a Licence to Employ Non-Resident Employee (“Licence”) from the Director of Labour of the relevant East Malaysian State before hiring employees from outside that State, effective 15 February 2026. The Rules outline the application process, the conditions of application, and the conditions attached to the issuance of a licence.
