Most of the registered migrant labours (more than 2.3 million in year 2013) send to Malaysia are being employed in various work sectors including construction, manufacturing, plantation, agriculture and services. While the source countries are from Bangladesh, Indonesia, Thailand, India, China, Sri Lanka, Pakistan and Vietnam. The fundamental concern is on migrant labours status because they remain the employees of those outsourcing companies and not the factories where they work. This is because work contract are made between the out sourcing companies and the factories owners (the employers) and not between the employees and the employers. This leaves great consequences on the employees. Legally, in labour relations, the lack on privity of contract between the employee and employer raise the question of legal responsibility and liability between the contracting parties. This paper will deal further on the receiving government policy, law and practice as well as the responsibility and liability of the outsourcing companies towards the migrant labours and the employers.