- Overview: Malta
- Global HR Compliance
- Global PEO and payroll
- Work permit for hiring expats via PEO
- Expand without a company set up
- Contractor vs. employee: which is better?
Global HR Compliance in Malta
If you hire an international workforce, or plan to hire, then Hiring and Firing Workforce in Malta Guide below will help you understand the nuances of labor legislation in the country.
When the company is planning to enter a new foreign market of Malta and has a need to employ a local national there, the first question to answer is how it is going to make local hires.
We have designed a Global Employer of Record service to help you outsource global employment of your foreign workforce to companies like ours.
This solution helps you employ your global sales force in Malta as well as in other 180+ countries of the world, and provide pay and benefits to your employees, as well as administer any business expenses with our help.
Our solution is different from other hiring modes in that it helps you engage your foreign workforce in full compliance with the local labor legislation. This means you are protected from any non-compliance and employee misclassification risks while we bear all employment risks, not you.
So, it looks very much like hiring your in-house sales force in your home country. However, you focus on only on your global business development while we admin your global HR. In addition, you don’t need to open your own entities in the foreign countries and can leverage our infrastructure in Malta instead. With our service, you can become a global company with reduced costs and minimized time and effort on your end.
Your employed foreign sales force will devote 100% of their time to your company product and may stay with you longer than foreign independent sales reps.
Global Employer of Record solution is 100% compliant solution that guarantees you and your employees fully compliance with local legislation in Malta .
We are experts in global workforce employment in Malta, and our goal is to become your single provider. Instead of working with numerous local staffing agencies and legal advisors, Acumen International can solve your global business challenges and save you time, costs, and resources.
Our team of English-speaking professionals frees you from working through language nuances. Acumen International works 24/7 and can assist you whenever you need, regardless of time zones. Our goal is to create tailored labor solutions for you that are managed legally and in full compliance with the local employment laws.
With our knowledge and deep understanding of local nuances, you easily satisfy your need for skilled professionals in your global industry. With our qualified local partners, you can trust that your global workforce satisfies all local tax, social security, and immigration requirements in Malta.
Hiring and Firing Workforce in Malta Guide
# Employment contracts
Maltese labor law is mainly based on contractual agreements concluded between the employer and the employee provided that the conditions of work established by law are observed. Thus, while certain conditions of employment are strictly regulated as legal, other conditions remain wholly parties that agree if they are also considered objectively reasonable.
Contracts for work can be concluded for a certain period or for an indefinite period.
A contract with a fixed term can be consistently updated to a maximum period of 4 years, after which the employee is considered to be imprisoned for an indefinite period. An exception occurs when the employer has reasonable grounds for retaining the employee on a fixed-term contract. An employee whose fixed-term contract has expired and is retained at work will also be deemed to have been concluded for an indefinite period if the employer does not produce a new service contract within 12 days after the expiration of the previous contract. A contract with a fixed term of up to four years of continuous employment automatically qualifies the employee for an indefinite contract if the employer has no justified reasons for ending it.
Employment in Mala is always linked to an employment contract, according to which the employee legally agrees to perform a specific job for the employer in exchange for remuneration.
Contracts can be for a fixed or indefinite period, as well as for part-time or full-time work. The contract must be in English and / or Maltese.
# Minimum (Statutory) Employment Rules and Regulations in Malta
# Hours of work:
Usually normal hours of work (excluding overtime) are based on 40 hours per week. However, in some cases that can be established by law, normal hours of operation may be longer, but not exceed an average of 48 hours per week per week for a control period of 17 weeks. In some sectors, both the manufacturing and tourism sectors, the reference period is one year.
The employer can ask the employee to work more than an average of 48 hours per week. However, in such a case, the relevant employee is required to have written consent. If the employee does not give his consent, the employer could not either the force or the victim of this particular employee as a result of his refusal. On the other hand, if consent is given, the employer must ensure that the employee is provided with daily rest and weekly rest periods provided for by law. Employees are entitled to one day off per week and must have 11 consecutive hours of rest between working days.
# Probation period:
A probationary or probation period of six months is the norm, and employment can be terminated without the cause of either party with a one-week notice (if the work period has exceeded one month). If the contract is terminated as a result of redundancy, the employee has the right to re-employment, if the position becomes available with one year. Employees become redundant on the basis of the last line.
During the probationary period, either party may cease working without any reason. Provided that the notice of the termination of work for the week must be transferred to the other party in the case of an employee who has worked continuously for the same employer for more than one month.
# Annual leave:
By law, the employee is entitled to 192 hours of paid annual leave (that is, at least the equivalent for four (4) weeks and four (4) working days calculated on the basis of a 40-hour workweek and an 8-hour day). If the average normal hour (excluding overtime), calculated over 17 weeks, is less than 40 hours per week, the leave clearance in hours should be adjusted accordingly.
Vacations begin to accumulate from the beginning of work. This can be achieved in an agreement between the employer and the employee. When an employee is at work for less than 12 months, he / she is entitled to a proportional amount of annual leave. Leave must be granted in consultation with the employer. The application for leave must be approved by the employer before the employee can continue his vacation.
By mutual agreement with the employer, leave can be accepted within a few hours. Otherwise, if there is no agreement between the employer and the employee, leave should be granted as a whole day.
# Parental leave:
A pregnant worker can apply for maternity leave for a continuous period of 16 weeks (16) with full pay.
A pregnant worker who intends to exercise the right to maternity leave should, to the extent practicable, notify the employer of the date when she intends to exercise this right, at least four weeks before maternity leave begins, to the extent practicable feasible.
A pregnant worker has the right to leave without loss of salary or any other benefit to participate in antenatal examinations, if such examinations are to be held during business hours. If the female worker does not resume work or after resuming work refuses her employer’s service without a proper and sufficient reason within six months of the date of such renewal, she will be liable for paying the employer the equivalent of the salary she received during the leave on leave pregnancy and childbirth.
During the maternity leave, the employee will be entitled to all rights and benefits that may be accrued to other employees of the same class or employment category at the same place of work, including the right to apply for advancement in the workplace and upon return to work, she will have the right to return to the same job. If this is no longer possible for good reason, the employee must return to the equivalent work corresponding to her initial employment contract.
During the holiday, the employee will not be entitled to any bonus or benefit related to productivity or production.
Employees who worked for the same employer for at least twelve months are eligible for parental leave. Both men and women have the right to receive unpaid leave to care for the child on the following grounds: adoption; or custody of a child to enable them to take care of the child for a three-month period, which will be used in the specified months, until the child reaches the age of eight.
# Sick leave:
Employees are entitled not less than the equivalent in the hours of two working weeks in each year of sick leave without loss of wages.
In cases of illness, a medical certificate must be presented to the employer. If a lack of work is not covered by a medical certificate, you need to look for other measures (for example, apply for leave).
The employer is only required to pay wages in the amount of sick leave permitted by law. If the employee is still sick after he has exhausted all rights to sick leave, he / she will continue to receive sickness benefits from Social Security, to which he may be entitled.
Any hours of work that exceed normal hours of work are considered overtime. The basic regulations governing overtime can be summarized as follows:
- no employee should work more than 48 hours for seven days, unless the employer has received the consent of the employee for such work;
- no employee should be harmed by his employer, as he / she does not wish to give his consent for the performance of such work;
- the employer keeps the latest records of all employees who perform such work, which must specify a certain number of hours of work of the employee, the record of which should be available to the Director responsible for labor and production relations. These records should be kept for at least two years from the date of their manufacture;
- the employer shall provide the Director, at his request, with information on cases where workers are given the consent to perform work exceeding 48 hours within seven days.
Any written agreement in accordance with what is stated above can be completed by the employee, giving at least seven days written notice to his employer or any other longer period not exceeding three months, which is stipulated in the written agreement.
# State minimum salary:
Malta has a minimum wage established by the government, and no worker in Malta can be paid less than this mandatory minimum wage. Employers in Malta who can’t pay the minimum wage can be punished by the Government of Malta.
The minimum wage of Malta is the lowest amount that an employee can pay for his work legally. Most countries have a nationwide minimum wage, which all employees must pay.
The minimum wage in Malta is € 168.01 per week, combined with an annual mandatory bonus of $ 270.20 and an annual cost of living of € 242.32, automatically adjusted for inflation. This rate applies to all employees. The minimum wage for Malta was last changed from January 01, 2016.
# Employee dismissal:
Upon termination of a service contract that lasts more than one month, the employer must provide him, at the request of the employee, a certificate of the duration of employment, the nature of the work or services performed and, if the employee so desires, the reason for the termination of the contract and the amount of labor payment. The employer is not obliged to indicate the reason for the termination of employment if the occupation was terminated during the probationary period.
A fixed-term contract may be terminated during the applicable probationary period without specifying any reason. However, a one-week notice (either party) applies if the employment exceeds one month. If there is no justified reason for the termination of work that is on a certain basis after the probationary period, the party violating the agreement can pay to the other party an amount equal to half of the total wage that would have been accrued, the contract of employment remained in force.
In situations of redundancy in the workplace, fixed-term employees are also affected by the procedures of the latter in / the first in the same category as other employees on perpetual contracts. Employees who suffer so much redundancy are entitled to compensation, as indicated in the above paragraph.
When an employee refuses to work and / or does not give a notice, he is obliged to pay to the employer an amount equal to half of the salary that will be paid for the notification period that has not been processed.
If the employee, working in the notification, decides not to continue working during the notification period, he also has to pay to the employer an amount equal to half of the salary that will be paid for the remaining notice period.
If the employer decides not to allow the employee to work or continue to work with the notification, at the time of notification or during the work of the notification, the employer is obliged to pay to the employee an amount equal to the total wage that will be paid for the unexpired notice period. Upon receipt of notification from the employer, the employee has the right to either continue working during the notification period or to ask the employer to pay him an amount equal to half of the salary that will be paid in respect of the remaining notice period.
If the employee decides to stop working at any time while working with the notice, the employer is also required to pay the employee an amount equal to half of the salary that will be paid in respect of the remaining notice period.
If the employer chooses not to allow the employee to work or not to continue working with the notification, the employer is obligated to pay the employee the amount equal to the full salary that will be paid in respect of the remaining notice period.