Employment contracts Malta

What should an employment contract in Malta include?

Employment contracts in Malta typically entail the following information:

• Contact information for both the employer and employee, including their names.
• The employee’s role and duties.
• Designated workdays and hours for the employee.
• The agreed-upon salary or wage, plus any extra benefits or rewards.
• Provisions for contract termination, including the notice period expected from both sides.
• Mutual understandings about confidentiality and non-disclosure.

Before signing, the employer and the employee should carefully review the terms and conditions outlined in the employment agreement.

What types of employment contracts exist in Malta?

Employment contracts in Malta can be split into several categories:

1. Employee contract

The employee contracts are further divided into two types of contracts:

• Indefinite-term Employment Contract: This is the most common type of contract. Its duration is indefinite, which means it continues until either party decides to terminate it according to the contracted terms of the notice. 
• Fixed-term Employment Contract: A fixed-term contract specifies a definite start and end date. These contracts are extendable for a maximum of four years, beyond which they become indefinite. If the employee continues to work after the fixed-term contract expires, they will transition to an indefinite contract unless the employer provides a new fixed-term agreement within 12 days.

2. Part-Time Employment Contract

Part-time contracts involve working fewer hours than a full-time employee. Terms and conditions, including salary and benefits, are adjusted accordingly. Employees are entitled to pro rata benefits, like holidays and sick leave. 

3. Temporary Agency Work Contract

This is an employment arrangement where a worker is employed by a staffing agency and then assigned to work for a client company. This type of contract involves three key parties: the worker (temporary agency worker), the staffing agency, and the client company.

How to hire employees in Malta? 

In order to employ workers within Malta, it’s essential to establish a formally registered business entity. This involves undergoing the process of business registration with Malta authorities and obtaining an allocated business registration identifier.

An alternative route entails leveraging the services of a global employer provider specialising in recruitment solutions. Furthermore, Native Teams offers  Employer of Record solutions, proficiently managing a spectrum of responsibilities such as payroll administration, human resource functions, and tax arrangements. We stand ready to support you where the quest for reliable and current job-related information across multiple countries presents challenges.