Employer of Record Guide in 

Malta

Vacation Leave

• Standard entitlement: 24 working days (4.8 weeks) annually
• Accrual: Earned at 2 days per month of service
• Carry-over: Up to 8 days may be carried to the following year
• Payout: Unused leave must be paid upon termination

Sick Leave

• Paid sick leave: Up to 10 days annually at full pay
• Extended sick leave: Additional days at reduced pay (two-thirds of wages)
• Medical certification: Required for absences exceeding 3 consecutive days
• Chronic conditions: Special provisions for long-term illnesses

Maternity Leave

• Duration: 18 weeks total
  • 6 weeks before expected birth
  • 12 weeks after birth
• Pay: Full salary for entire period
• Job protection: Guaranteed return to same or equivalent position

Parental Leave

• Paternity leave: 2 days paid leave for fathers
• Parental leave: Additional unpaid leave available for both parents
• Adoption leave: Same entitlements as maternity leave for adoptive parents

Bereavement Leave

• Immediate family: 3 days paid leave
• Extended family: 1 day paid leave
• Qualifying relationships: Spouse, children, parents, siblings, grandparents

Personal & Family Leave

• Marriage leave: 1 day paid leave
• Study leave: Available for approved educational programmes
• Jury duty: Paid leave for civic responsibilities
• Emergency leave: Unpaid leave for family emergencies

Summary

Termination Types

Termination with Cause:

• Immediate dismissal without notice for serious misconduct
• Examples: theft, gross insubordination, breach of confidentiality
• No severance or notice pay required

Termination without Cause:

• Requires proper notice or payment in lieu
• Must follow fair dismissal procedures
• Cannot be discriminatory or retaliatory

Notice Period Requirements

Notice periods depend on length of service and are calculated in weeks.

Severance Pay

Malta does not mandate statutory severance pay beyond notice periods. However, collective agreements or employment contracts may provide additional severance benefits.

Probationary Periods

• Maximum duration: 6 months for most positions
• Notice during probation: 1 week after first month of employment
• Termination rights: Either party may terminate with minimal notice during probation

Final Pay Requirements

Employers must provide final payment within 7 days of termination, including:

• Outstanding salary
• Accrued vacation pay
• Statutory bonus (pro-rated)
• Any contractual benefits

Termination Documents & Process

Required documentation:

• Written termination notice
• Final pay statement
• Certificate of employment (service record)
• Form 56 (tax clearance certificate)

Anti-Discrimination & Retaliation Laws

Employees cannot be terminated for reasons related to:

• Gender, race, religion, or nationality
• Pregnancy or maternity leave
• Trade union membership or activities
• Filing complaints about working conditions
• Whistleblowing activities

National Public Holidays

Malta observes 14 national public holidays annually.

Holiday Pay Eligibility

Employees are entitled to public holiday pay if they:

• Have been employed for at least 4 weeks
• Worked their scheduled day before and after the holiday (unless on approved leave)

Working on Public Holidays

Employees who work on public holidays receive:

• Double time pay (2× regular hourly rate)
• Alternative day off within the following month
• Premium rates apply to all hours worked on the holiday

Local Feast Days

Many localities celebrate patron saint feast days. While not national holidays, these may affect local business operations and employee availability.

Required Documents for Employment

• Employment contract: Must specify terms, conditions, salary, and benefits
• Identity card or passport: For EU citizens; work permit required for non-EU nationals
• Tax number: Obtained from Inland Revenue Department
• Social security number: Required for all employees
• Bank account details: For salary payments
• Educational certificates: If relevant to the position

Language Requirements

• Official languages: Maltese and English
• Business language: English is widely used in business settings
• Contract language: May be in English or Maltese
• EU language rights: Employees may request documents in their native EU language

Background Checks & References

• Criminal record checks: Permitted for relevant positions (finance, childcare, security)
• Employment verification: Standard practice for previous employment
• Educational verification: Required for professional positions
• Data protection: Must comply with GDPR requirements

Data Protection & Privacy

Malta follows EU GDPR regulations:

• Consent required: For collecting and processing personal data
• Data minimisation: Only collect necessary information
• Right to erasure: Employees can request data deletion
• Data breach notification: Must report breaches within 72 hours

IP Assignment & Confidentiality

• Work-for-hire: Intellectual property created during employment belongs to employer
• Confidentiality clauses: Standard in employment contracts
• Non-compete agreements: Limited enforceability; must be reasonable in scope and duration
• Trade secrets: Protected under Maltese law

Probation Period Setup

• Standard period: 6 months maximum
• Performance reviews: Regular assessments during probation
• Early termination: Possible with minimal notice after first month
• Confirmation: Written confirmation required at end of probation

Onboarding Timeline

What the EOR Handles

Borderless AI manages:

• Employment contract preparation and compliance
• Tax and social security registration
• Payroll processing and statutory contributions
• Leave management and statutory benefits
• Termination procedures and documentation
• Local labour law compliance

Worker Classification: Employee vs. Contractor

Malta distinguishes between employees and self-employed contractors based on several criteria:

Employees:

• Work under employer direction and control
• Receive regular salary with tax and social security deductions
• Entitled to employment benefits and protections
• Subject to disciplinary procedures

Contractors:

• Operate independently with minimal supervision
• Invoice for services and manage own taxes
• No entitlement to employee benefits
• Bear business risks and expenses

Classification tests:

• Control over work methods and schedule
• Integration into business operations
• Financial risk and investment in tools
• Exclusivity of relationship

Unionisation & Collective Agreements

Malta has strong trade union traditions:

• Union membership: Approximately 60% of workforce
• Collective bargaining: Common in public sector and large enterprises
• Sectoral agreements: Cover minimum wages and working conditions
• Strike rights: Protected under law with proper procedures

Cultural Norms & DEI Expectations

Maltese workplace culture emphasises:

• Relationship building: Personal connections are important
• Hierarchy respect: Traditional respect for seniority and authority
• Work-life balance: Family time is highly valued
• Religious observance: Catholic holidays and traditions are respected
• Multilingual communication: English and Maltese are both acceptable

Remote Work Considerations

Remote work regulations in Malta:

• Legal framework: Telework Act provides comprehensive rules
• Equipment provision: Employers must provide necessary tools
• Health and safety: Same obligations apply to home offices
• Working time: Standard hour limits and rest periods apply
• Data protection: Enhanced security requirements for remote access

Cross-border considerations:

• EU citizens can work remotely from other EU countries for limited periods
• Tax implications for extended remote work abroad
• Social security coordination within EU

Anti-Discrimination Laws

Malta prohibits discrimination based on:

• Gender, race, ethnicity, religion
• Sexual orientation and gender identity
• Age and disability
• Political opinions
• Trade union membership

Enforcement:

• National Commission for the Promotion of Equality
• Industrial Tribunal for employment disputes
• Criminal penalties for serious discrimination