Understanding Leave Entitlements in Employment Law: Your Essential Guide
Introduction
The entitlement to leave is a fundamental aspect of every employment contract, ensuring employees have the opportunity to step away from their work responsibilities when necessary. Leave provisions serve not only practical purposes – such as rest, personal commitments, or family obligations – but also reflect the broader objective of safeguarding employee well-being and promoting a sustainable work-life balance. By guaranteeing time to rest, the law recognises that productivity and job satisfaction depend on the ability to recharge and maintain balance outside the workplace.
Vacation Leave
Under the Annual Leave National Standard Order (Subsidiary Legislation 452.115), a full-time employee working 40 hours per week is entitled to 192 hours of paid annual leave each year. If an employee’s average weekly hours over a 17-week period are more or less than 40, their leave entitlement is adjusted on a pro-rata basis in accordance with the Organisation of Working Time Regulations.
In addition, in line with the National Holidays and Other Public Holidays Act (Article 6) and Regulation 8(1) of Subsidiary Legislation 452.87, if a public holiday falls on a Saturday, Sunday, or any day the employee is not normally scheduled to work, they are entitled to an extra day of vacation leave.
Vacation leave begins to accrue from the start of employment and can typically be taken in full days, though some employers may allow leave to be taken in hours. While employees have the right to annual leave, it must be approved by the employer before being taken. Once approved, leave cannot be cancelled unilaterally – it requires the agreement of both employer and employee.
Employees may also carry over up to 50% of their unused annual leave to the following year, provided there is a written agreement with the employer under the Organisation of Working Time Regulations. Any carried-over leave must be used first and cannot be carried forward a second time.
Importantly, the law protects a minimum of four weeks (160 hours) of annual leave that cannot be replaced with payment or allowances, except in cases where the employment relationship ends. This ensures employees receive a guaranteed period of rest each year, reflecting the core principle that leave is about time off, not just compensation.
Finally, if the employee takes more vacation than the statutory minimum, any excess leave becomes a civil debt owed to the employer upon termination of the employment relationship.
Sick Leave
Sick leave in Malta is governed by the Minimum Special Leave Entitlement Regulations (Subsidiary Legislation 452.101). Employees are entitled to sick leave whenever they provide a medical certificate confirming that they are unfit for work. The length of entitlement varies depending on the job type and industry, in accordance with the relevant Wage Regulation Order (WRO). For sectors not covered by a WRO, employees are entitled to two working weeks of paid sick leave per year, calculated in hours and adjusted to deduct the equivalent of any sickness benefit they may receive under the Social Security Act.
Part-time employees and employees with less than one year of service receive a pro-rata entitlement to sick leave on full pay, also adjusted for Social Security sickness benefits. While employers may choose to grant additional sick leave, they cannot provide less than the minimum legally required entitlement.
Employees must provide a medical certificate from a practitioner of their choice to justify any absence. For sick leave of seven days or less, the certificate should be presented upon returning to work, while for longer absences, it must be submitted within one week from the start of the absence. To prevent abuse, employers may request an examination by a doctor of their own choosing, and any conflicting assessments may lead to an investigation. However, suspected abuse of sick leave does not, on its own, constitute a good and sufficient cause for termination under Maltese law, unless otherwise proven.
Employers are only obliged to pay wages for the period of sick leave as specified by law. If the sickness continues beyond the employee’s entitlement, they may claim sickness benefits from Social Security, if eligible.
Maltese law also addresses cases where sick leave coincides with scheduled vacation. If an employee falls sick immediately before a scheduled vacation, the employer may refuse the vacation. Conversely, if sickness occurs during pre-arranged vacation, the vacation leave is considered unused.
Forced Leave
Forced leave occurs when an employer requires an employee to take their annual leave at a time determined by the employer, rather than by mutual agreement. In such cases, the employer must provide a written justification for the forced leave within a reasonable period before it begins. If the forced leave exceeds the employee’s annual leave entitlement, this does not create a civil debt in favour of the employer.
Regarding company shutdowns, unless otherwise agreed with the employee or a trade union, the employer may only apply up to twelve working days of annual leave to cover temporary closures. This includes short shutdowns for bridge holidays or other brief closures of all or part of the workplace. Employers are required to notify all employees of any planned shutdown by the end of January each calendar year.
Urgent Family Leave
Employees in Malta are entitled to 32 hours of paid urgent family leave each year, which can be used in cases of sickness or accidents affecting immediate family members. Of these 32 hours, the first 16 hours are deducted from the employee’s annual leave entitlement, while the remaining 16 hours are deducted from their annual sick leave entitlement.
Injury Leave
In Malta, injury leave is governed by the Minimum Special Leave Entitlement Regulations. Employees who suffer an injury while performing their work duties – and not due to their own negligence or a breach of safety rules – are entitled to up to one year of injury leave with full pay. This amount is reduced by any injury benefit the employee may receive under the Social Security Act.
The purpose of injury leave is to give employees the necessary time to recover and return safely to work after a workplace accident. Importantly, during this period, vacation leave and bonuses continue to accrue, ensuring that employees do not lose other entitlements while recovering from their injury.
Jury Service Leave
In Malta, jury service leave is governed by the Minimum Special Leave Entitlement Regulations. Under this legislation, every employee is entitled to time off on full pay to fulfil their civic duty of attending court as a juror. The duration of the leave depends on the length of the court proceedings, ensuring employees have sufficient time to participate. Employees are required to inform their employer in advance and provide proof of their jury service before taking this leave.
Quarantine Leave
Under the Minimum Special Leave Entitlement Regulations, employees in Malta are entitled to quarantine leave whenever required by the Superintendent of Public Health or another relevant public authority. This leave applies in situations such as pandemic outbreaks or other national or global health emergencies, and its duration is determined by the directives of the health authority.
Conclusion
Malta’s employment law provides employees with a wide range of statutory leave entitlements, including annual leave, sick leave, injury leave, urgent family leave, jury service leave, forced leave, and quarantine leave. Each type of leave is designed to protect employees’ rights, promote well-being, and ensure a healthy work-life balance, while also providing flexibility to accommodate the operational needs of employers.
It is important for employees to understand their rights, including how leave accrues, how it interacts with other entitlements, and the procedures for taking it. Equally, employers must comply with these statutory obligations and provide leave as required by law. If an employer fails to grant any of the above-mentioned statutory leave, employees have the right to lodge a complaint with the Department of Industrial and Employment Relations (DIER), which can evaluate the case and, if necessary, initiate court action to ensure compliance with these rules, employers not only avoid legal risks but also foster healthier, fairer, and more sustainable workplaces.
This article is for information purposes only and should not be construed as legal advice. The information provided reflects the law as it stands on the blog’s publishing date. For the most updated version or advice tailored to your specific circumstances, you are strongly encouraged to consult a lawyer.
Article and research done by Ms Caitlin Turner, LL.B. (Hons) (Melit.), currently reading a Master of Advocacy at University of Malta.
Sciberras Advocates founded by Dr Adrian Sciberras, is a law firm based in Malta. The firm prides itself to be multi-disciplinary, innovative and flexible in order to meet the changing times and any challenges in the local and international legal scenario. No matter what private or corporate complex demands are called for, Sciberras Advocates offers practical and cost-effective legal solutions to achieve your desired results. You may reach Sciberras Advocates by phone on +35627795222 or via email on [email protected].
