Employment Law 101

Understanding The Basics Of The Employer-Employee Relationship

Introduction

Employment law lies at the foundation of every fair and functioning workplace. In Malta, while working conditions may differ across industries, there are core legal standards that every employer must uphold. These standards are designed to protect employees, promote fairness, and ensure safe and dignified working conditions for all.

Malta’s employment framework covers key aspects such as working hours, minimum wage, health and safety, termination, and parental leave. These not only safeguard employees’ rights but also guide employers in maintaining lawful and ethical practices.

Whether you are an employee seeking to understand your rights or an employer striving to meet your obligations, a solid grasp of Malta’s employment law is essential. This first article in our Employment Law Series explores the key principles that govern the local workplace and the legal framework that underpins employer–employee relationships.

The Written Contract

Every employment relationship in Malta must be governed by a written statement of employment – a legally binding document that outlines the terms and conditions of work. Employers are required to provide a copy of this written information statement within seven calendar days of an employee’s first day of work.

In line with the Transparent and Predictable Working Conditions Regulations (S.L. 452.126), employers must supply this information in writing – either on paper or electronically – ensuring it can be accessed, stored, and printed by the employee.

The written statement must specify key details such as:

• Employer’s name, registration number, and business address;
• The place of work and job title;
• A description of duties;
• Commencement date and, where applicable, end date (for fixed-term contracts);
• Salary, working hours, leave entitlements, notice periods, and other key conditions of work.

In addition, an employment contract may also be provided.

Employment contracts can be fixed-term (with a set expiry date) or indefinite (open-ended). Regardless of the type, terms cannot be changed unilaterally – both parties must agree to any amendments.

Employers must also provide employees with copies of relevant workplace policies, including disciplinary procedures. Both sides are entitled to seek legal advice before signing to ensure full understanding of their rights and obligations.

Employed vs Self Employed

Under Article 2 of the Employment and Industrial Relations Act (EIRA), an employee is defined as a person working under a contract of service and under the direction and control of another. Those providing services independently, without such control, are generally classified as self-employed.

The Employment Status National Standard Order (S.L. 452.108), in Article 3, sets out criteria to help determine employment status: an employment relationship is deemed to exist if a worker meets at least five of the following criteria:

1. The worker depends on one person or entity for at least 75% of their annual income.
2. The person for whom the service is provided determines the work to be done, as well as how and where it is carried out.
3. The work is performed using tools, equipment, or materials supplied by that person.
4. The worker follows a schedule or minimum working periods set by the person receiving the service.
5. The worker cannot subcontract the work to others.
6. The worker is integrated into the organisation’s structure or hierarchy.
7. The work performed is a core activity of the organisation.
8. The worker performs similar duties to existing employees, or to those previously done by employees before the work was outsourced.

Employees may be full-time, whole-time, or part-time. Importantly, Maltese law ensures that part-timers are not treated less favourably than full-timers regarding pay and benefits.

Sources of Maltese Employment Law

The cornerstone of Maltese employment law is the Employment and Industrial Relations Act (EIRA), Chapter 452 of the Laws of Malta. This Act regulates essential aspects such as wages, working conditions, discrimination, and termination procedures.

Other key sources include:

1. Wage Regulation Orders (WROs): Define sector-specific minimum standards and leave entitlements.
2. Health and Safety at Work Act (Cap. 646 of the Laws of Malta): Establishes the Occupational Health and Safety Authority (OHSA) to safeguard the well-being of workers.
3. Employment and Training Services Act (Cap. 594 of the Laws of Malta): Regulates employment services, traineeships, and third-country national employment, and establishes Jobsplus and the National Employment Authority.

Judgments from the Industrial Tribunal, Court of Appeal, and the European Court of Justice (CJEU) also play an important interpretative role, even though Malta does not follow the doctrine of precedent.

Conclusion

Employment law in Malta provides the framework for a balanced and fair relationship between employers and employees. Grounded in both national legislation and EU principles, it promotes a just, transparent, and sustainable labour market.

By understanding and adhering to these legal standards, employers can operate responsibly while employees can work confidently knowing their rights are protected. Ultimately, awareness and compliance foster workplaces built on trust, fairness, and mutual respect – the hallmarks of a modern and equitable employment environment.

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].