The Exodus from Egypt forged a distinct national identity for the Israelites. To preserve the deep impact of this event, participation in the Passover sacrifice was strictly limited to those who had fully entered the covenant, excluding anyone who lived in the surrounding society but was not an integral part of the nation [שד״ל, קאסוטו].
The primary approach among commentators is that this exclusion focuses on non-Jews. A resident refers to an outsider living in the land who has accepted basic moral laws, including the prohibition against idolatry [רש״י, רלב״ג, חזקוני, תורה תמימה, רש״ר הירש]. A hired worker is a non-Jew employed by an Israelite for a short time. Even though this worker eats at his employer's table and seems like part of the household, he is not permitted to join the Passover meal [שד״ל, ביאור שטיינזלץ, רש״ר הירש].
Since a separate rule already forbids anyone who is uncircumcised from eating the Passover sacrifice, commentators question why these specific workers needed to be explicitly excluded. One view suggests this addresses a unique case of non-Jews who are physically circumcised. Even if they direct their hearts to God, they remain outsiders and are forbidden from participating [רש״י, דברי דוד]. Other scholars defend this by explaining that because physical circumcision is the main criteria for the Passover sacrifice, a specific rule was necessary to exclude them [מזרחי, גור אריה, מלבי״ם]. However, [רמב״ן] strongly disagrees, noting that traditional law considers those specific nations to be legally uncircumcised regardless of their physical status. Instead, he argues that the exclusion applies to a non-Jew in the middle of the conversion process who has been circumcised but has not yet immersed in a ritual bath [רמב״ן, ביאור יש״ר]. Additionally, this restriction extends to a Jew who has abandoned his faith [תורה תמימה].
Another aspect of this law relates to the degree of control an employer has over his workers. Unlike a permanent slave, whom a master has the authority to circumcise and include in the meal, temporary residents and hired workers retain their independence. The master has no right to force them to undergo circumcision, and therefore, they cannot participate in the sacrifice [העמק דבר, רלב״ג].
In sharp contrast to these views, another approach suggests the law does not deal with non-Jews at all, but rather with Israelites. According to this perspective, the resident and hired worker are actually Hebrew slaves or local laborers. Because they are not permanently owned by their employer, they are not automatically considered part of his family. Therefore, they cannot simply eat from their employer's sacrifice unless they were specifically counted and registered for it in advance [אבן עזרא, בכור שור].