Malta Employment Guide

Navigating Employment Termination in Malta: A Guide for Global HR

As an international HR professional, I understand that managing employment termination requires careful attention to local regulations. In Malta, the process is governed by specific legal frameworks that demand strict compliance. Unlike some jurisdictions, Malta does not permit 'at-will' termination after the probation period, meaning employers must always have valid grounds for ending an employment relationship.

Valid Grounds for Termination

Termination in Malta must fall under one of the following categories to ensure legal compliance:

• Voluntary resignation by the employee
• Mutual agreement between both parties
• Unilateral termination by the employer, justified by:
  • Probationary period non-confirmation
  • Objective reasons such as redundancy
  • Disciplinary dismissal for misconduct
  • Performance-related issues due to incapacity
• Expiry of a fixed-term contract

For example, a technology firm using SailGlobal’s HR services recently navigated a termination based on redundancy by documenting objective business reasons and following consultation protocols, avoiding legal disputes.

Notice Period Requirements

Malta mandates minimum notice periods that increase with an employee’s tenure. Adhering to these timelines is critical to avoid penalties. The requirements are:

• Less than 6 months of service: 1 week
• Less than 2 years: 2 weeks
• Less than 4 years: 4 weeks
• Less than 7 years: 8 weeks
• Over 7 years: Additional 1 week per year (max 12 weeks)

In practice, companies like SailGlobal help clients automate notice calculations to ensure accuracy, especially for long-serving employees.

Severance and Final Compensation

Malta’s law does not obligate employers to pay severance, but employees must receive their standard wages during the notice period. However, collective agreements or company policies may introduce additional benefits. For instance, a retail client of SailGlobal enhanced its termination package voluntarily to maintain employer branding, leading to smoother transitions.

Always consult local legal experts or integrated HR platforms like SailGlobal to tailor termination strategies to your organization’s needs while mitigating risks.