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Employment Law in Malta

Employment Law in Malta

Updated on Tuesday 19th April 2016

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employment_law_in_malta.jpgMalta’s Republican Constitution since 1974 is the main instrument that regulates the Labor Law. It is divided into: the primary legislation, the secondary legislation and the Public Service Management Code.

Employment Law in Malta implies the employment contract which is an agreement between an employer and an employee that specifies the duties, the wage/salary agreed upon for the employee. The contract is usually written and it is handed to the worker within 8 days from starting the employment.

You can contact our law firm in Malta for specific details about the Employment Law.

The employment contract in Malta

The employment contract in Malta can be signed for fixed or unlimited period of time and the job can be full-time or part-time. In Malta the usual probation time is 6 months unless specified otherwise. During the trial period any of the parties can conclude the employment without a reason, but in this case a week’s notice must be given.

The contract must contain data about the salary, payment for overtime work, the program (number of hours per day, per week), where the work takes place and the time off the worker is entitled to. The salary must be paid at regular time spans that will not exceed 4 weeks.

Contracts signed for a determined period of time can be renewed yearly. However, starting the 4th year of employment, the employee will be working based on indefinite time work contract.

Terminating an employment contract in Malta

In case of ending a contract signed on a limited period of time, the party ending the agreement before the term must pay half of the gaining the employee would have made in the time remaining until the end of the contract.

In case of dismissal, the Maltese law is very strict. The Maltese company can end a contract only if there is a good cause, in case of redundancy and if the employee has achieved the retirement age.

The employee can end the agreement without presenting any reason.

In Malta, at the end of a contract that has been signed on unlimited period of time, the notice is calculated as it follows:

- for periods from 1 to 6 months, the notice will be one week;

- for periods between 6 months and 2 years, the notice will be two weeks;

- for periods between 2 and 4 years - four weeks;

- for periods between 4 and 7 years - eight weeks;

- for periods exceeding 7 years, the maximum notice to be given is 12 weeks.

Special treatment and protection, in case of termination, is offered to injured people and women in maternity leave.

The Industrial Tribunal is in charge with judging commercial disputes, wrongful dismissals and all the cases that present breaches of employment laws and work ethics.

If you need more information about the Employment Law or you want to open a company in Malta, our Maltese lawyers can provide you legal assistance.



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