Hiring and Firing Practices in Malta

Like any other country, Malta has specific regulations governing hiring and firing practices designed to cover both employers and employees. Knowing these regulations helps businesses function smoothly and legally within Malta’s rules and laws.

For more detailed information, in this article, we’ll explain the basic practices of hiring people and letting them go in Malta, so everyone knows what to expect.

Contracts and Employment Terms

In Malta, there are nine different types of employment contracts Contracts for work can be either for a fixed period or indefinite duration. A typical fixed-term contract cannot exceed four years and must be at least six months in duration unless there are precise and concrete reasons specified in the contract. Fixed-term contracts can be renewed for up to four years, after which the employee is considered to be employed indefinitely unless there are valid reasons for retaining the fixed-term arrangement.  

Minimum Employment Regulations

Malta sets out minimum statutory employment rules and regulations to safeguard the rights of workers. These regulations cover various aspects of employment, including hours of work, probation periods, annual leave, sick leave, parental leave, overtime, and minimum salary. 

• Hours of Work: The standard working week in Malta is 40 hours. Exceptions may exist when normal working hours extend to an average of 48 hours per week over a 17-week control period, subject to specific legal provisions.   The overtime rate is usually higher than the regular hourly rate, as stipulated by the employment contract or collective agreements. The control period allows flexibility in scheduling work hours. Over this period, the weekly average should not exceed 48 hours. This means that in some weeks, employees might work more than 48 hours, while in others, they may work less, balancing out over the 17 weeks.  Employees can voluntarily agree to work beyond the 48-hour weekly average. This agreement must be made without any coercion and should be documented in writing.

• Probation Period: A probationary period of six months is customary in Malta. During this period, employment can be terminated by either party with just one week’s notice, provided the duration of employment exceeds one month without needing to provide a reason.  This applies to both definite (fixed-term) and indefinite (permanent) contracts. ​For contracts longer than six months but less than fifteen months, the probation period is calculated as two months for every six months of the contract’s duration. Contracts exceeding fifteen months have a maximum probation period of six months. (DIER)​​ 

• Annual Leave: Employees are entitled to 192 hours of paid annual leave, equivalent to four weeks and four working days, based on a 40-hour workweek and an 8-hour working day. Adjustments may be made for employees working fewer than 40 hours per week. Employees in Malta who have been in employment for less than a year receive a proportional amount of annual leave based on their period of service. If a public holiday falls on a Saturday, Sunday, or an employee’s rest day, an additional day of vacation leave is added to the employee’s entitlement within the same calendar year. Up to 50% of the annual leave can be carried forward to the next year if agreed upon with the employer, but this carried forward leave must be used first and cannot be carried forward again. Upon termination of employment, employees are entitled to payment for any outstanding leave

• Sick Leave: In Malta, sick leave entitlement varies by sector and is often defined by Wage Regulation Orders (WROs). For sectors not covered by a WRO, employees are entitled to two working weeks of sick leave per year, calculated in hours. To validate sick leave, employees must provide a medical certificate to their employer. During sick leave, employees are entitled to full pay, less any social security benefits they may receive. If an employee’s illness extends beyond their sick leave entitlement, they will only continue to receive sickness benefits from social security. Furthermore, employees injured during the actual discharge of their duty are entitled to a maximum of one year of injury leave on full pay, less any injury benefits from social security​
• Parental Leave: In Malta, maternity leave consists of 18 weeks, with the first 14 weeks paid by the employer and the remaining 4 weeks covered by the government through the Maternity Leave Benefit. Employers must pay a maternity leave contribution of 0.3% of the basic weekly wage for all employees, including part-timers, but not for those on unpaid leave. Employers can claim reimbursement from the Maternity Leave Trust Fund for the initial 14 weeks. Self-employed individuals can also apply for this benefit if they meet specific criteria. For more information, visit the Department of Industrial and Employment Relations and Social Security Department websites​

• State Minimum Salary:     

In Malta, the minimum wage is set to rise to €213.54 per week as of January 1, 2024, inclusive of the Cost of Living Adjustment (COLA). This increase reflects a significant adjustment from the previous rate of €192.73 per week in 2023. The COLA for 2024 is set at €12.81 per week, contributing to this increase. This adjustment is part of a planned series of increases over the next four years, with the minimum wage expected to continue rising annually, exclusive of further COLA adjustments.

Additionally, the minimum wage includes mandatory bonuses and a cost-of-living adjustment to account for inflation, ensuring that workers’ earnings keep pace with rising living costs. This policy applies to all employees, with specific adjustments for different age groups and employment conditions.

For further details, you can refer to sources such as MaltaToday and The Malta Independent.

Employee Dismissal

Employee dismissal is regulated by the Employment and Industrial Relations Act, ensuring fair treatment and legal protections for workers. Dismissal can occur due to redundancy, misconduct, or inability to perform job duties. Employers must provide notice or payment in lieu of notice, depending on the length of service. For example, the notice period ranges from one week for employees with more than one month but less than six months of service to twelve weeks for those with over ten years of service. Dismissals must be justified, and employees have the right to challenge unfair dismissal through the Industrial Tribunal within four months of termination. Additionally, employees dismissed due to redundancy have priority for re-employment if their former position becomes available within one year of termination. These regulations aim to balance the rights and obligations of both employers and employees

Conclusion

Before starting a new job in Malta, both employers and employees need to get familiar with the country’s employment laws and regulations, which may diverge from those of their home country. This way, employers can expect fair treatment of their employees while safeguarding their business interests. Similarly, employees can assert their rights and expectations within the framework of Maltese employment law.  

And for those sold on the idea of moving to Malta, here are some popular websites for job hunting in Malta:

JobsPlus – The official government job portal offering a wide range of job listings across various sectors.

Keepmeposted – A comprehensive job board with listings from numerous industries, regularly updated with new opportunities.

Maltapark – Known primarily as a classifieds website, Maltapark also has a section dedicated to job listings.

Konnekt – A leading recruitment agency in Malta offering job listings and recruitment services for various sectors.

Careerjet – A job search engine that aggregates job listings from multiple websites in Malta, providing a broad range of opportunities.

JobsinMalta – A specialized job board focusing on positions available specifically in Malta, across different industries.

Reed Malta – Part of the larger Reed job search network, offering listings in Malta.

LinkedIn – The professional networking site also features a job search function with listings for positions in Malta.

These websites can help you find job opportunities across various sectors and industries in Malta. Happy hunting!