Susan MeierArticle by Dr. Andreas Huebner:
For non-EU nationals looking to take up employment in Malta, a residence permit granting the right to work is a prerequisite before signing an employment contract. However, the rules are different for citizens of other EU member states. EU nationals do not require a specific work permit. Instead, they simply need to register their residence in Malta. This registration involves two main steps: applying for a residence card with Identità (formerly Identity Malta) and registering with JobsPlus (formerly the ETC), the national agency responsible for employment and training.
Applicable Law: Maltese or Foreign?
Whether your employment contract is governed by Maltese law or the law of another country (such as the UK or Germany) depends primarily on what is agreed upon by the parties in the contract itself. However, it is important to note that you cannot use a choice-of-law clause to bypass mandatory employment regulations that would otherwise apply.
If the contract does not explicitly state which law applies, the regulations of the country where the employee habitually carries out their work will govern the agreement. This refers to the location where the majority of the service is performed. Alternatively, the law of the country with which the employment relationship has the strongest connection may be applied.
The Bottom Line
In practice, if you sign a contract with a Malta Limited company and your physical workplace is in Malta, Maltese law will apply. Complexities generally only arise in cases where the employer is based abroad, or if the employee performs their duties primarily outside of Malta.
