Malta Employment Contracts

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Malta Employment Contracts

A successful business largely depends on its employees. By creating working contracts that include the right terms and benefits there will be no misconception and the perfect work-life balance can be created. At Bradford Jacobs, this is our aim, and we support companies in over a hundred countries with creating compliant and balanced labor contracts.

Our team keeps track of Maltese laws and regulations daily to be duly aware of updates that can be implemented in working contracts. By using our PEO and EOR service we can provide compliant labor contracts for employees in Malta, including local benefits.

To support your plans, we made this guide including the basics of employment contracts in Malta. After reading this guide you will know everything about the conditions, laws, and benefits to include in a Maltese employment contract.

How do you hire Malta Employees?

Foreign companies hiring employees in Malta must operate within a strict framework of legislation that relies on both federal laws, European Union (EU) directives and collective agreements that provide safeguards and entitlements for the workforce. These include:

  • Wage Regulation Orders (WROs) that outline conditions applying to individual sectors
  • The Employment and Industrial Relations Act (also known as the Labor Code)
  • The Employment Commissions Law
  • The Employment and Training Services Law
  • The Public Services Management Code

These considerations come into play during the first stages of hiring and onboarding – including drawing up a contract with your new employee. Once Bradford Jacobs’ Professional Employer Organization (PEO) recruitment networks have located the best talent for your company, we step in to advise on this crucial element of recruitment.

Contracts need not necessarily be in writing. However, under the Information to Employees Regulations a written agreement of basic details, must be presented to the employee no later than eight days after commencement, if employment is intended to last longer than one month with more than eight hours work per week.

Key factors include:

  • Detailing whether the contract is permanent or fixed term and whether a probation period (not to exceed six months) is involved
  • Start date
  • Remuneration and benefits, guaranteeing at least the National Minimum Wage
  • Social conditions such as sick pay, maternity, and parental leave
  • Notice periods, termination, and dismissal policy
  • Frequency of pay and overtime payments, which cannot exceed four weeks in arrears
  • Working hours, job description and location of employment
  • Procedure for breach of contract
  • Annual paid leave
  • Contracts must be signed by both parties, who must be over 18 years old
  • There is no legal requirement regarding language, but it must be understood by both parties

Outsourcing the recruitment and hiring process through Bradford Jacobs’ Professional Employer Organization (PEO) network will give you the security that our know-how will deal with all potential contractual problems. Guarantee a trouble-free move into your new territory by trusting our Employer of Record (EOR) services to handle every aspect of contractual compliance.

Types of Employment Contracts in Malta

Within one month of starting work, employees working with a company for more than one month and at least eight hours a week must receive from the employer either a written contract, or a written statement of the fundamental working conditions. The basic information should include such as: remuneration and overtime, working hours, place of work, role, and paid vacations.

The main types of employment contract are:

  • Indefinite, Open-ended Employment Contracts: The most common type of contract. If no other arrangement has been agreed, the contract is deemed to be indefinite. Either party can terminate the contract, but must abide by contracted terms of notice, severance agreements and any collective agreements.

  • Fixed-term Employment Contracts: These can be renewed up to a maximum of four years, after which the contract is considered to be indefinite. If the employee is kept on after the fixed-term contract they will move to an indefinite contract unless the employer issues a new fixed-term, contact within 12 days of expiry of the previous agreement. If either party terminates before time, they must pay the other a sum equal to half the wages the employee would have earned for the remainder of the agreement.

  • Probation Periods in Employment Contracts: It is implicit that the first six months of contracts for new employees constitutes a trial period. Probation can be terminated by either party with one week’s notice if trial period has exceeded one month. One year’s probation applies to managerial or executive posts where salary is twice the minimum wage unless the contract agrees to a shorter period.

Other types of contracted employment in Malta:

  • Part-time permanent work: Entitles worker to pro rata benefits such as holidays and sick leave
  • Commission-based employment: Pay based on reaching targets
  • Apprenticeships and Traineeships: Usually fixed term for three to five years

Collective Bargaining Agreements (CBAs):

In the private sector collective bargaining takes place at company level. Where CBAs are not in place Wage Regulation Orders lay down minimum terms per sector in conjunction with other mandatory regulations covering employment. CBAs cannot undercut statutory minimums. It is estimated around 50% of workers are covered by CBAs, with up to 40% members of trade unions. CBAs are covered by the Employment and Industrial Relations Act (Labor Code).

What Employment Laws exist in Malta?

Maltese employment law is based on the Employment and Industrial Relations Act (also known as the Labor Code) plus subsidiary laws aimed at ensuring employers and employees have a clear idea of their rights and obligations. These focus on wages, conditions of employment, discrimination, the regulation of contracts, termination, and the methods by which disputes are settled:

  • The Employment and Industrial Relations Act (EIRA, also known as the Labor Code): This lays out regulations for the operations of trade unions, employers’ organizations and the relationship between employers and employees. Conditions of employment, protection against discrimination and industrial relations are among aspects covered.

  • Wage Regulation Orders (WROs): These apply to various sectors and industries, ensuring minimum wages are met by employers.

  • The Organization of Working Time Regulations: These always overrule any WROs which provide inferior benefits.

  • The Employment and Training Services Law: Regulates employment with training programs, registering of jobseekers through ‘Jobsplus’, licensing and authorizing employment agencies.

  • The Public Services Management Code: Regulates the conduct of public service officers.

Companies extending their operations into Malta need a total understanding of employment and contract laws. Bring Bradford Jacobs’ expertise into the equation with our comprehensive understanding of Maltese laws and regulations. The global reach of our Professional Employer Organization (PEO) specialists is matched by in-country Employer of Record (EOR) platforms that ensure a smooth entry into the Maltese economy.

How do you onboard Employees in Malta?

The most efficient and cost-effective method of onboarding employees into the Maltese economy is through a global recruitment company such as Bradford Jacobs.

Transferring staff from abroad requires compliance with strict and protracted procedures to obtain visas and work permits – a long and tedious process. Making mistakes risks sanctions, wasting time and money with the likelihood the employee will not be allowed to start work, or may even be promptly deported on arrival at the airport. In Malta, different rules apply to European Union, European Economic Area citizens and those classed as being ‘Third Country Nationals’.

The alternative is to locate and recruit staff from within Malta. This takes a thorough knowledge of the employment market. And Bradford Jacobs have the knowledge to clear the way for your expansion.

Our Professional Employer Organization (PEO) and Employer of Record (EOR) solutions manage every stage of the process from finding the employee to seeing their first check is paid on time. The result? Your new employees are quickly operational as part of a team making their mark in your new territory.

Translating Maltese Employment Contracts

There is no legal requirement for contracts to be in a particular language. Foreign workers should ask for a translation in their language if necessary to fully understand the contract’s terms.

Tick all the boxes

Bradford Jacobs’ recruitment specialists will guide you and your employees through every step of onboarding into Malta. From talent acquisition to the complexities of employment legislation, payroll and tax, Bradford Jacobs ticks all the compliance boxes, and we ensure every aspect is contractually watertight.

The global reach of our Professional Employer Organization (PEO) recruitment platforms, combined with the in-country knowledge of our Employer of Record (EOR) specialist teams, guarantees a successful and smooth transition of your employees in your new territory.

To learn more about our PEO and EOR packages, contact one of our consultants today.