Employment Law in Malta

CSB Group provides – among others – both assistance in order to obtain residence and work permit and a wide range of corporate, legal and financial services to those companies which decide to locate in Malta and to maximise their profits within legitimate and transparent business structures. 

Employment in Malta

Employment law in Malta plays a crucial role in ensuring fair and balanced relationships between employers and employees. This article aims to provide an overview of various aspects of employment law in Malta, focusing on essential sub-topics such as termination, dismissal, probation, notice periods, leave entitlements, sick leave, public holidays, working hours, and overtime regulations. By understanding these key areas, both employers and employees can navigate the Maltese employment landscape with confidence and compliance.

Termination

Termination of employment refers to the ending of an employment relationship. In Malta, termination can occur through various means, including but not limited to resignation, mutual agreement, or termination by either party. It is essential to follow the provisions stated in the employment contract and adhere to the notice period requirements to ensure a lawful termination.

Dismissal

Dismissal refers to the termination of an employment contract by the employer. In Malta, employers must have justifiable reasons for dismissal, such as poor performance, misconduct, or redundancy. Dismissals must comply with the procedural requirements outlined in the Employment and Industrial Relations Act to avoid unfair dismissal claims.

Probation

Probationary periods are commonly used in employment contracts to assess an employee's suitability for a position. During this time, both employers and employees have the opportunity to evaluate the employment relationship and decide whether to continue the employment contract.

Leave Entitlements

Employees in Malta are entitled to various types of leave, including annual leave, maternity/paternity leave, and parental leave. Annual leave varies year to year and is typically calculated on a pro-rata basis. Maternity/paternity leave and parental leave are provided to employees who meet specific criteria as per the law.

Sick Leave In Malta

Employees are entitled to sick leave when they are unable to perform their job duties due to illness or injury. The law establishes guidelines regarding sick leave entitlements, including the duration of paid sick leave and the requirements for medical certification.

Public Holidays

Malta recognizes a number of public holidays throughout the year. Employees are generally entitled to a day off work with full pay on these public holidays, provided they meet the criteria specified in the law. Employers must ensure compliance with these requirements to avoid any legal implications.

Working Hours

The law in Malta stipulates maximum working hours to protect the health and safety of employees. The standard working week is typically 40 hours, although certain industries may have different arrangements. Additionally, the law sets out rules for breaks and rest periods to ensure employees' well-being.

Overtime

Overtime work occurs when an employee works beyond the normal working hours. In Malta, employers must compensate employees for overtime work, usually at a higher rate than regular hours.

Employment law in Malta encompasses various aspects that govern the relationship between employers and employees. Understanding the regulations related to termination, dismissal, probation, notice periods, leave entitlements, sick leave, public holidays, working hours, and overtime is crucial for both employers and employees. By adhering to these laws, employers can maintain a fair and harmonious work environment, while employees can ensure their rights and entitlements are protected. It is advisable for both parties to seek professional advice or consult the official employment law resources when dealing with specific employment matters in Malta.

Types of Employment Contracts

Employment contracts play a crucial role in defining the relationship between employers and employees in Malta. These contracts establish the rights, obligations, and expectations of both parties, ensuring a fair and lawful working environment. In Malta, there are two types of employment contracts:

1. Indefinite-term contracts: This is the most common type of employment contract in Malta, where the employment relationship has no fixed end date. It provides both parties with stability and security, as long as the contract's terms and conditions are upheld.
2. Fixed-term contracts: These contracts are used for temporary or project-based employment. They have a predetermined end date or are tied to a specific task or event. Fixed-term contracts are suitable for situations where there is a clear time-frame for the employment need.

It is essential for employers and employees in Malta to understand the different types of employment contracts available and choose the most suitable one based on their specific needs and circumstances. These contracts serve as a legal framework that promotes transparency and ensures a harmonious working relationship while upholding the rights and obligations of both parties involved.

Industrial Tribunal

The Employment and Industrial Relations Tribunal in Malta serves as a pivotal entity for resolving disputes in the realm of employment. It provides a platform where conflicts between employers and employees can be heard and adjudicated impartially.

Data Protection

Data protection in employment law in Malta is primarily governed by the Data Protection Act (Chapter 586 of the Laws of Malta) and the General Data Protection Regulation (GDPR) as applicable within the European Union (EU). These regulations outline the protection of personal data of employees and set guidelines for its lawful processing. Employers are required to inform employees about the data collected, its purpose, and obtain consent where necessary.

Hiring Foreign Employees

Thanks to the fundamental principle of the Freedom of Movement of Workers within the European Union, EU citizens enjoy the privilege of relocating and seeking employment in Malta with ease. This principle allows individuals from any EU member state to move, reside, and engage in employment within Malta without encountering major restrictions.

Benefits of Working in Malta

There are multiple attractive factors to work in Malta. Among others, Malta offers an attractive fiscal regime, a stable political and economic climate, healthy industrial relations and a strategic geographic location.

Moreover, indices for Malta are exceptionally high in terms of cost of living, the environment, freedom, health, safety and climate. Living standards in Malta are also good and compare well with those of continental Europe. In this respect, the island’s low crime rate implies that Malta is a safe country to live in and is an ideal place to base families if one is engaged in commercial activities within the region. As a business destination, Malta has a lot to offer, and as a home, there can be few places more ideal.

Employment Incentives

In its pursuit to attract talent to Malta and to accommodate foreign companies which need to bring in human resources from abroad, the Maltese legislator has introduced a number of attractive employment incentives which cover tax incentives, soft loans, investment allowances, training assistance and more, as well as flexibility in activities.

CSB provides full support to its clients in obtaining residence and work permits for their staff and in administering client payroll, coordinating all relevant paperwork with the relevant authorities and guiding clients through the procedures and pitfalls in the course of administering these formalities. Our legal team also provides an array of employment-related solutions and assistance in contracts of service, dismissals, redundancies, transfers of employees between undertakings, equal treatment on the workplace and the implementation of appropriate systems and procedures for clients’ human resources.

Employment Law Services

CSB Group Employment Law services include: