Malta’s employment landscape is incredibly dynamic and so can be rather confusing. There are a few central key terms that serve as a basis to it. It’s important to have a basic foundational knowledge of them if you are planning on working in Malta.
Generally, employment, work permits, and residency are hot topics in Malta. This reflects the complicated regulations and opportunities that define Malta’s employment law and labour market. It is essential to understand the fundmental concepts, whether you are an employee trying to understand your employment agreements, or seeking a job.
Here is a comprehensive guide to basic elements that make up Malta’s employment environment.
Maltese Labour Law
Every market is regulated by legislation. For the Labour Law in Malta, the primary legislation that you can consult is the following:
- The Constitution of Malta
- The Employment and Industrial Relations Act (EIRA)
- The Employment Commission Act
- The Employment and Training Services Act
- EU Regulations and Directives
Employment Contract
Employment contracts can be indefinite or definite. But what does this mean?
Indefinite: the employee is engaged in employment for an indefinite period. This means that employment does not include a termination date. An indefinite contract of employment cannot be changed into a definite contract of employment.
Definite: the employer and employee agree on its duration, meaning such contract includes a termination date. A fixed term contract can be renewed up to a maximum period of four years. Afterwards, the employee will be on an indefinite contract.
Probation Period
When you start a job, you will encounter a probation period. The probation is an established period during which the employee is assessed by the employer on suitability for the job. The employee decides whether they want to continue the employment in that job. During probation either party may terminate the employment without assigning any reason. However, one week’s notice must be given if the employment has lasted over a month. The whole probationary period is payable with the rate of wage agreed. This means you will receive the wage agreed on previously.
Termination during Probation
The first six months of employment are the probation period. We have discussed that during this time either party can terminate the contract and should give a week’s notice if you have been employeed for over a month. If the employee is pregnant, the employer is obliged to give the employee reasons in writing to justify the dismissal. This is insofar as they are unrelated to the employee’s condition.
Wages
For 2024 the national minimum wage per week of a full-time employee is €213.54. On a yearly basis, the cost-of-living increase issued by the government is obligatory. This means that, to protect your lifestyle, the government increases what you are paid. The reason for this is so you can keep up with inflation. A full-time employee is entitled to the full increase. A part-time employee is entitled to it in proportion to the hours worked.
Working Hours
The standard normal hours of work for a full-time employment (excluding overtime) are based on 40 hours a week. However, working hours can vary according to the sector of industry. An employer can ask an employee to work more than an average of 48 hours per week. In such a case, a written consent is required from the employee.
Leave
Whether it’s for holiday or force majeure, you may need time off. Malta’s employment law states that every employee with a 40-hour working week is entitled to paid annual leave of 192 hours. There is various other leave types. These include Bereavement leave, birth leave, court witness leave, injury leave, jury service leave, marriage leave, maternity leave, parental leave, sick leave, urgent family leave and others.
Notice Period
When terminating employment with an indefinite contract, notice needs to be given prior to the termination of employment. Notice is calculated on the employee’s continuous length of service, as follows:
- For more than one month but not more than six months: one week
- For more than six months but not more than two years: two weeks
- For more than two years but not more than four years: four weeks
- For more than four years but not more than seven years: eight weeks
- For more than seven years: an additional 1 week for every subsequent year of service or part thereof up to a maximum of twelve weeks
- For such longer periods as may be agreed by the employer and employee in the case of technical, administrative, executive or managerial posts.
Wages and Payslips
Wages should be paid at regular intervals, not more than 4 weeks in arrears. Employers must give their employees an itemised payslip, either before or on the date when the wages are due. You can lodge a complaint at the Department of Industrial and Employment Relations (DEIR) if the employer fails to pay the wages due and if the employer fails to provide the payslip due.
Wage Deductions
An employer is not allowed to make deductions from the employee’s wage, enless permitted by law or by court order. The employer can impose fines on the employees only if it is agreed in a collective agreement or specified in a contract of employment or written statement and authorised by the Director of Industrial and Employment Relations.
Overtime
The employer can oblige an employee to work overtime, provided:
(1) the total hours of work do not exceed on average 48 hours a week.
(2) the employee has consented in writing to work more than the weekly average.
However, such a consent can be withdrawn by the employee. A written notice of at least 7 days up to 3 months (as agreed), must be given to the employer. Malta’s employment law states that employees do not have to work overtime especially during pregnancy and for a period of 12 months from the birth of the child or from the date of a child’s adoption.
Overtime Rates
Most sectors have their overtime rate regulated by the respective Wage Regulation Order (WRO).
Employees whose overtime rate is not covered by this shall be paid one and a half (1.5) times the normal rate for each hour worked in excess of the 40 hours per week.
Rest Periods
Where the working day is longer than six hours, an employee is entitled to minimum 15 minutes of rest. This can be longer if another agreement states so. This rest period is not considered as working time.
Sick Leave
The amount of sick leave varies according to each industry-specific sector. It is stipulated in the relevant WRO that regulates each specific sector of industry. In the case of a sector not covered by a WRO, an employee is entitled to two working weeks of sick leave annually, calculated in hours.
Public Holiday
When a public holiday falls on any day of the week that the full-time employee is not scheduled to work (such as the weekend), the equivalent in hours of one working day is to be added to the employee’s vacation leave entitlement. In the case of part-time employees and full-time employees working reduced hours, the equivalent in hours of one day pro rata is to be added.
Maternity Leave
A pregnant employee may take an uninterrupted period of eighteen (18) weeks maternity leave. The first fourteen (14) weeks are with full wages paid by the employer. The remaining four (4) weeks are not paid by the employer. However, the employee must apply for the Maternity Leave Benefit to which she is entitled in terms of the Social Security Act. On termination of maternity leave, the employee has the right to resume work in the post formerly occupied before the start of the maternity leave. If such a post is no longer available, they are entitled to a similar post.
Unfair Dismissal
The Employer may only terminate a contract of employment based on a ‘good and sufficient’ cause, redundancy, or the employee reaching retirement age. The following are a few example scenarios that are not considered to be ‘good and sufficient’ causes: Getting married, going on maternity, becoming a member of a trade union, joining religious groups, the employer no longer having the confidence of the employee, disclosing information to a public regulating body regarding alleged illegal activities being committed by the employer.
Employment Process for Third Country Nationals
If you are a Third Country National thinking of relocating to Malta, or are already here and need employment guidance, have a look at this specific page containing Immigration Frequently Asked Questions by Third Country Nationals.
If you are in any type of employment situation where you require legal advice, our lawyers at Sciberras Advocates will be able to assist you with any employment issues. For more information on Malta’s employment laws, please contact us on [email protected].
Sciberras Advocates founded by Dr Adrian Sciberras, is a law firm based in Malta. The firm prides itself to be multi-disciplinary, innovative and flexible in order to meet the changing times and any challenges in the local and international legal scenario. No matter what private or corporate complex demands are called for, Sciberras Advocates offers practical and cost-effective legal solutions to achieve your desired results. You may reach Sciberras Advocates by phone on +35627795222 or via email on [email protected].
