Businesses in Malta are constantly on the rise. Whether it being because of the favourable tax regimes, or for the island’s atmosphere, the fact still remains that businesses are spreading faster than ever. This is precisely why, prospective business owners should at the very least have a brief understanding of what the employment laws in Malta entail.
The Importance of Employment Law
The importance of employment law cannot be overstated. Many tend to assume that employment laws are only there to protect employees as the weaker party, however they are also of crucial importance for businesses. Businesses need to base their employment agreements, rules and regulations, according to the relevant laws, otherwise they would be looking at some pretty hefty fines or worse. These laws however, also allow for businesses to follow a structure which would not only ensure their protection and the protection of the employees, but it would also aid in creating a good working environment within which employees could flourish. If employees are happy and well protected, then that would increase workflow and efficiency, hence why adhering to such laws is beneficial for all.
Overview of Employment Law in Malta
Employment Law in Malta is mainly governed by the Employment and Industrial Relations Act (Chapter 452 of the Laws of Malta). Other relevant pieces of legislation include: The Occupational Health and Safety Authority Act (Chapter 424 of the Laws of Malta) and the Employment and Training Services Act (Chapter 594 of the Laws of Malta).
These legislations ensure a proper workplace environment by prohibiting discrimination and harassment, ensuring equal treatment of employees and providing rules as to how one should keep adequate records of their business and many more. If you are a prospective business owner however, your attention should first and foremost be drawn to the legal requirements laid down by law pertaining to employment contracts and agreements. These requirements are mostly found in Legal Notice 267 of 2022 which was enacted by the Minister responsible for employment and industrial relations by the power given to them by the Employment and Industrial Relations Act.
The Main Requirements of Employment Contracts
Other requirements are scattered throughout a number of Legal Notices. Firstly, an employer must necessarily provide the employees with certain personal information, such as the name and registered place of business, amongst other details. The contract must also include the primary place of business where the employee shall be working. This can include multiple locations; however this would need to be included in the contract, whilst also specifying the primary place of business.
The employers should also state the date of commencement of the occupation as well as a description of the type of work expected from the employee. This should also be accompanied by the end date, if the employment is for a certain period of time. If not, then that shall also be stated in the contract.
Other important elements include the rate at which the employee shall be paid, together with all the relevant leave entitlements, such as holiday leave, sick leave, parental leave etc. The employer is also legally obliged to include what is known as the probationary period and for how long such period will last. The probationary period is a relatively short period of time within which an employer can terminate the contract without having to provide any reasons for the dismissal. This is a great advantage enjoyed by both employers and employees hence why it is of utmost importance to correctly identify such possibility in the employment contract.
The above is not an exhaustive list and for further information feel free to consult one of our experts.
Ensuring Adequate Protection
In order to truly protect your business, an employer has to adhere to all the necessary requirements established by law. Further clarifications and provisions are in place in order to facilitate the smooth operation of the company. For example, an employer is bound to keep a proper record, containing all the necessary information about the employees and the occupation itself. The employer shall also protect and employee’s right to non-discrimination and equality, which is not only provided for in Employment laws, but is also safeguarded in the Constitution and the European Convention on Human Rights. With all these requirements in place, it is also essential to know the procedures in place in case of a dispute or breach of rights.
Dispute Resolution
Both the legal notices, as well as the Employment and Industrial Relations Act, give the employee the right to settle any disputes by lodging a complaint to the appropriate authorities. For example: where a complaint is based on an employer’s breach of employment conditions, then a case can be lodged before the Industrial Tribunal. If such complaint is deemed justified by the Industrial Tribunal, then certain remedies will be awarded, such as the reinstatement of employment, cancellation of a contract, cancellation of particular clauses in the contract or payment of compensation arises out of damages.
Complaints before this Tribunal shall be held orally in person, and the decision of the Tribunal shall be binding on the parties. One may also note that there are no application or court fees to appear before this Tribunal.
Out of Court Dispute
Dispute resolution can also take place outside of the courts or tribunals. In fact, many find it much easier to agree amicably between themselves in order to avoid unnecessary hassles. Both the employer and the employee are free to enlist the services of a lawyer in order to better protect their rights. In such cases, a settlement agreement is drafted stating both parties’ claims and demands. It is always advisable to have a lawyer’s aid when drafting such agreements in order to best convey your desires and to protect yourself from taken advantage of.
We here at DW&P would gladly provide such services. We can advise clients on the best way forward, and in those cases where a settlement is reached then our lawyers can also help draft the appropriate settlement agreement/s.
DW&P’s Role in the Matter
The legal team at DW&P is well experienced in the realm of employment law and shall provide legal help to any interested clients. We are well equipped to provide advice on any queries you may have on the issue. We can also provide more specific services such as drafting employment contracts. By allowing us to handle your employment contracts, we will make sure to include all the legal requirements while also balancing the rights of both the employer and the employee.
We can also advise on the best ways to keep in line with compliance. If there are instances where there is a breach of contract, law or any other safeguarded rights, then we can advise the best way forward and even represent clients in such disputes.
Conclusion
The law in employment matters is quite detailed and demanding, thus one can easily forget to include certain provisions. The consequences of doing so can lead to devastating consequences, hence why we highly recommend consulting experts. That way you can rest assured that your employment agreements are complying with the law, while also respecting fundamental rules, such as, those on equality and non-discrimination.
Disclaimer: The above-mentioned article is simply based on independent research carried out by Dr. Werner and Partners and cannot constitute any form of legal advice. If you would like to meet with up with any of our representatives to seek further information, please contact us for an appointment.
