ARTICLE
2 October 2024

The Employment Contract In Malta: What Employers Need To Know

PS
Papilio Services Limited

Contributor

Papilio Services Limited, established in 2012, is based in Malta with sister companies in the Netherlands and the Czech Republic. The firm boasts a multinational team and a diverse client base, providing cross-border solutions in Corporate, Tax Compliance, and Residency services on a global scale.
Malta has implemented the EU Directive regarding transparent and predictable working conditions. The aim of the directive is to harmonise the information an employer needs to provide to an employee...
Malta Employment and HR

Malta has implemented the EU Directive regarding transparent and predictable working conditions. The aim of the directive is to harmonise the information an employer needs to provide to an employee about essential aspects of the work relationship and conditions and to ensure greater transparency and safety in the workplace.

In Malta, the statutory conditions of employment must be respected, which means that certain conditions of employment are strictly regulated as a matter of law. Having said this, other conditions are entirely left up to the parties to agree upon, insofar as they are also considered to be objectively reasonable. This article delves into the key components that must be included in an employment contract according to Maltese law.

If the period of employment exceeds one month and the employee's working hours exceed eight hours per week, the employer is bound to give the employee, within 7 calendar days from the commencement of employment, either

  • a written contract of employment, or
  • a written statement of minimum conditions, which must be furnished to the employee.

Key Elements Maltese Employers Must Address:

  1. Basic Information: Employers must provide workers with information about the essential aspects of the employment relationship. This includes details about the employer and the place of work.
  2. Job Description and Employment Dates: A clear description of the employee's role and the dates marking the beginning (and end, if applicable) of the contract are essential.
  3. Probation and Training: Information regarding any probation period and training entitlements should be included.
  4. Leave Entitlements: Employees are entitled to various types of paid leave, which should be outlined in the contract.
  5. Termination Procedures: Details on how employment may be terminated, including notice periods and methods, need to be specified.
  6. Remuneration and Working Time: The contract should include information about basic pay, overtime, and the organisation of working hours.
  7. Unpredictable Work Patterns: If applicable, the contract should address any variability in work patterns and related details.
  8. Collective Agreements and Social Security: Mention of any relevant collective agreements and social security institutions is also required.

While these are some of the core elements that need to be addressed, drafting a compliant and comprehensive employment contract in Malta involves more nuanced details. To ensure that your employment contracts fully comply with Maltese law and cover all necessary aspects, it's advisable to seek professional assistance.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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