Employment Law in Malta

Valletta Legal understands that issues dealing with employment law are of paramount concern to both employers and employees since the relevant laws govern and regulate the relationship between both parties and serve to promote a healthy work ethic between them.

This is one of the reasons why our firm recognises the importance of this particular field of law, advising clients on all aspects, including statutory conditions, which must feature in every employment contract and the various regular amendments to the law that require immediate compliance in every work place. This allows the employer to create a working environment that is free from discriminatory practices, and is in full compliance with the law, and where both parties' interests are respected.

Malta recognises the right to work as a fundamental right within the Constitution of Malta 1974, and has subsequently undertaken to promote a series of proper working conditions that have been designed to make this right effective.

The main legislation concerning employment law in Malta is found in Chapter 452 of the Laws of Malta, however a number of regulations have been included along the years to address both public and private sectors. These include provisions for the minimum safety standards required on the workplace, wage expectations, any applicable overtime rates, working hours, paid and unpaid leave, and any relevant entitlements amongst others. There are also a number of industry-specific collective agreements in place that regulate employment in Malta, and may apply to particular situations including any decisions taken in local courts or tribunals. 

Dismissal and the Rights and obligations of both parties involved are very strictly protected under Maltese law. An Employer is only able to terminate an employment contract on the following criteria:

• Good and sufficient cause - which is subject to interpretation on an individual basis
• Redundancy
• Retirement age

The employee, on the other hand, is able to terminate his or her indefinite employment without stating any reasons.

Both in the case of redundancy, as well as whenever an employee chooses to terminate an indefinite employment agreement, a notice period is required that is calculated on the amount of time the employee has been continuously employed as follows:

• 1 – 6 months – 1 week
• 6 months – 2 years – 2 weeks
• 2 years – 4 years – 4 weeks
• 4 years – 7 years – 8 weeks
• Over 7 years – an extra week should be added for every additional year, capped at 12 weeks