Considering an Employment Contract: Is it Necessary?

A solid employment contract serves as a fundamental document that outlines the terms and conditions of the employer-employee relationship. It plays a pivotal role in providing clarity, setting expectations, and establishing a legal framework for both parties. A well-crafted employment contract helps mitigate disputes, protect rights, and create a stable foundation for a successful working relationship. Having such a document in place is crucial for fostering transparency, reducing ambiguity, and ensuring a fair and mutually beneficial arrangement between employers and employees.

One of the main features of the Legal Notice 267 of 2022 – Transparent and Predictable Working Conditions Regulations - is to clearly outline what needs to be included in such a contract. 

1. Provision of Information in Writing (Regulation 4):

The regulation emphasises the importance of providing workers with essential information in writing. This information must be accessible to the worker, either on paper or electronically, with the employer retaining proof of transmission or receipt. This requirement ensures clarity and transparency in the employment relationship.

2. Essential Aspects of the Employment Relationship (Regulation 5):

Employers are mandated to inform workers about various aspects of their employment relationship. This includes:

(a) Employer details: Name, registration number, registered place of business, and identification document number.

(b) Employee details: Gender, address, and place of work.

(c) Employment details: Title, grade, nature of work, and brief job description.

(d) Commencement and end date of the employment relationship (for fixed-term contracts).

(e) Specifics on leave entitlements.

(f) Termination procedures and notice periods.

(g) Remuneration details, including frequency and method of payment.

(h) Working hours, including overtime and shift arrangements.

(i) Information on collective agreements or relevant conditions of employment.

(j) Social security details.

This extensive list aims to provide a comprehensive understanding of the employment relationship, fostering transparency between employers and workers.

3. Timing and Means of Information (Regulation 6):

The timing and means of providing information are outlined in this regulation. Key points include:

• Information from paragraphs (a) to (e), (g), (k), (l), and (m) of Regulation 5(1) should be provided within the first seven calendar days of employment.
• Other information from Regulation 5(1) should be provided within one month of the first working day.

These timelines ensure that workers receive crucial information promptly, contributing to an informed and empowered workforce.

4. International Assignments (Regulation 7):

In cases where workers are required to work in a country other than Malta for over four consecutive weeks, additional information must be provided. This includes details about the work abroad, currency of payment, benefits, and repatriation conditions. This regulation aims to safeguard the rights of workers engaged in international assignments.

5. Record-Keeping Requirement (Regulation 8):

Employers are obliged to keep a copy of any written contract of employment or statement of engagement. This provision reinforces the importance of maintaining a documented record of the employment relationship.

The outlined regulations stress the importance of clear communication, timely disclosure of information, and record-keeping. This not only ensures compliance but also serves as a foundation for trust and understanding between employers and employees. In essence, the significance of a solid employment contract cannot be overstated in creating a positive and stable work environment.

CSB Group, an expert in employment advisory services boasting over 35 years of experience in the commercial domain, stands prepared to assist both start-ups and established organisations alike. Our expertise extends to addressing any inquiries or service requirements meticulously customised to meet the unique needs of your business. 

About the Author

This article has been authored by Dr Bjorn Camilleri, Regulatory & Business Advisor. Contact us here or on [email protected] for more information