Employment Contracts
Employment Contracts are the tool which regulates the relationship between the employer and the employee is the employment contract, provided that the statutory requirements are respected.
Indefinite Contract
Fixed-Term Contracts
Reduced Hours
Part Time
Casual Workers & Zero Hour Contracts
Shift-Work
Telework
(ii) the equipment used for telework (ownership, maintenance, liability and costs);
(iii) the amount of working time to be spent at place of telework and at the workplace;
(iv) schedule where applicable;
(v) the description of the work to be performed;
(vi) the relevant department, superior and to whom to report;
(vii) monitoring, if any;
(viii) notice of termination of telework agreement; and
(ix) when agreed upon in the course of the employment there must be a reference to the right of reversibility by either party, (including the right of the teleworker to return to his pre-telework post).
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Indefinite Contract
- The most common form of contract used.
- Unless specified otherwise, an employment contract is by default deemed to be indefinite.
- Probation and Notice Periods are regulated by Chapter 452 of the Laws of Malta.
- Can only be terminated for a reason valid at law or on the basis of redundancy.
- Contestation of termination of employment must be brought before the Industrial Tribunal.
Fixed-Term Contracts
- Employer must justify the reason for opting for a fixed term contract.
- Contract has a fixed date or fixed purpose.
- After 4 years of employment, such contract automatically becomes an indefinite contract.
- Can be terminated for any reason however consequences differ from indefinite contracts
- Contestation of termination of employment must be brought before the Industrial Tribunal.
Reduced Hours
- Still considered to be full-time.
- Usually by agreement with employer.
- Usually a temporary measure.
- Social security still due as per full time contract.
- Pro-rata can only be calculated if there exists a basis of full-time work.
- Standard tax rates
Part Time
- No specific hours constitute part time work.
- On a yearly average, cannot exceed full time hours.
- Still entitled to all full-time benefits on a pro rata basis (leave, bonuses etc.)
- Social Security not due, if paid on another main job or if hours do not exceed eight (8) hours per week.
- Reduced tax rates
- Can have another full-time job.
Casual Workers & Zero Hour Contracts
- Offers level of flexibility.
- Popular with seasonal industries such as catering.
- Hours are not specified.
- Do not guarantee steady income and conditions of employment.
- Not regulated in Malta so very often a pro rata approach is adopted in terms of benefits.
Shift-Work
- Shift work is a working arrangement that comprises either non-day work (evening or night work) or weekend work or both.
- Advantages: Employees enjoy more free time during the day.
- Possible for a worker to accumulate several days off in a row on a regular basis.
- Can effect biological functions of the body due to irregular routine;
- Sleep deprivation due to irregular sleep;
- Could lead to fatigue which can effect job productivity and work place accidents.
- Usually found in 24 hour operations such as transport and health.
- Legal definition - any method of organising work in shifts whereby workers succeed each other at the same work stations according to a certain pattern, including a rotating pattern, and which may be continuous or discontinuous, entailing the need for workers to work at different times over a given period of days or weeks.
- Employer must still ensure a pattern of work.
- Must keep record of night work which Director might request to ensure proper rest is being given.
Telework
- Telework may be required as a condition of employment in an employment contract or resorted to by agreement, in the course of the employment relationship.
- Must be in writing.
- Must include provisions relating to:
(ii) the equipment used for telework (ownership, maintenance, liability and costs);
(iii) the amount of working time to be spent at place of telework and at the workplace;
(iv) schedule where applicable;
(v) the description of the work to be performed;
(vi) the relevant department, superior and to whom to report;
(vii) monitoring, if any;
(viii) notice of termination of telework agreement; and
(ix) when agreed upon in the course of the employment there must be a reference to the right of reversibility by either party, (including the right of the teleworker to return to his pre-telework post).
- Can be refused by employee if not in employment contract.
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