Employment

Work Permits

Even though Malta has become a fully-fledged member of the EU, Malta has obtained a transition period up to 2008, wherein, persons wishing to work in Malta are still required to apply for a work permit. Work permits are only issued to foreign individuals whose employment in Malta will not be in competition with the Maltese labour force. Directors and top management personnel of International Trading Companies and Overseas Companies having a local branch, office or production unit, are usually granted work permits, subject to periodic monitoring from the immigration office.

Engagement and dismissal

No employee may be taken on without a contract of employment although this may take the form of a letter. The contract of employment must state as a minimum the following: . Rate of pay and hours worked . Paid holiday entitlement (minimum 4 weeks) . Paid sick leave entitlement. An employee's contract of employment may be terminated for any reason within the probation period, which usually varies from 3 to 6 months, but thereafter termination without good reason and without following the statutory disciplinary procedures may result in a claim by the employee for unfair dismissal and subject to a penalty.

Trade Unions

There is no legal requirement for employers to recognise any trade union unless a majority of the work force vote in favour. Agreements between employers and trade unions over pay and conditions are binding by law. There is no legal requirement for employees to be represented on the board of directors of companies.

Social Security Contributions

An employer is liable for social security contributions in relation to its employees.