Employment and Labour Law

Employment law (also referred to as labour law) is a branch of law which governs the legal relationship between an employer and an employee, as well as respectively related unions. These two parties are not usually on a level playing field – the employer has more experience and resources at their disposal than the employee. In this regard, this area of law protects employees from abusive and unjust behaviour and actions of the employer, such as unfair dismissals, discrimination, untimely and inadequate payment of wages, any sort of breach of contract, problems at the place of work, etc. 

This is not to say that, on the other hand, the employer enjoys no protection under this area of law. In fact, said employer is protected by law against undesirable conduct of the employee – ie. ignoring employer’s instructions and directives, unsatisfactory work, not adhering to the provisions of the employment contract, failure to tender notice before resignation, untimely resignations, abandonment of work without just cause, etc… 

Furthermore, horizontal issues such as health and safety standards in the workplace, employment licenses, etc. also feature in this area of law. Usually, an employment contract is entered into between the employer and employee in order to govern all terms and conditions of employment, provided that said terms and conditions are not in breach of Maltese employment law (or any other law). In certain cases though, the contractual relationship between the employer and employee may be regulated by a Collective Agreement (depending on the sector of the industry and/or associated unions) in lieu of a traditional signed contract between the two said parties.

The Employment and Industrial Relations Act (Cap. 452) or “EIRA” for short, is the principal law which regulates employment law, along with several subsidiary laws, such as Wages Council Wage Regulation Orders (applicable according to industry sector and which prevail over the general EIRA). Other laws such as the: Employment and Services Training Act, Employment Commission Act, and Persons With Disability (Employment) Act as well as any regulations made thereunder. EU legislation on employment and industrial relations also applies accordingly.

With respect to persons employed in public service, one must also take into consideration the Public Service Management Code (PSMC) which replaced the former ESTAcode in 2002. Furthermore, in the Constitution of Malta, the State recognises the right of all citizens to work and promotes the conditions it deems necessary in order to render this right effective. In Malta, the National Employment Authority (NEA), The Department for Industrial and Employment Relations and JOBSPLUS handle all employer-employee relations in accordance with the aforementioned legal regime.

Lexvirtualis™ offers the following services in the field of employment and industrial relations law:

• Drafting of employment contracts, engagement letters and collective agreements (and terms and conditions therein)

• Drafting of other related agreements (eg. Confidentiality and Non-Disclosure, Intellectual Property,

• Advice relating to wages and salaries, leave (annual/sick/maternity/etc…), government bonuses as well as other employment conditions

• Compliance (eg. Health and Safety requirements, Data Protection law)

• Registration of Commencement or Termination of Employment of Employee with JOBSPLUS and other local authorities

• Registration of Employer with Income Tax (and PE Number), VAT (and MT Vat Number), JOBSPLUS (and Employer No.) as well as other local authorities

• Advice on employment contracts prior to signing

• Employment due diligence reports

• Setting up of Employer’s Employment Agencies and Unions

• Employment Licenses (work permits) and the Single Permit Application

• Alternative Dispute Resolution and Litigation (Industrial Tribunal) including Appeals

• Appeals with National Employment Authority (NEA)