A Step-by-Step Guide for Employers

Malta’s employment and HR procedures are governed by the Employment and Industrial Relations Act (EIRA) and other relevant legislation. Below is a comprehensive overview of the key steps and legal obligations for employers operating in Malta, including recruitment, onboarding, work permits, and employee rights.

🔹 1. Recruitment & Onboarding

📌 Job Advertising & Selection

• Implementation of the Malta Labour Migration Policy to start from 1 August 2025, with new controls

The new Malta Labour Migration Policy places the worker at its centre and seeks to strike a balance between the efficient and effective management of genuine labour market needs for third-country nationals, and the protection of workers’ rights alongside broader social objectives.

• An employer must place one job advert with Jobsplus and the EURES portal for at least three weeks within the two months preceding the application for a ‘New (still abroad)’ single permit.
• TCNs eligible under the Key Employment Initiative, the Specialist Employment Initiative, the Blue Card Directive, and the Skilled Occupation List must advertise for a minimum of two weeks within the two months prior to application on an appropriate local media platform

📌 Interview Process

• Ensure fair and equal opportunity.

📌 Job Offer

• Provide a written offer outlining role, salary, benefits, and expected start date.

🔹 2. Employment Contracts

All employees must receive a written employment contract before or on the first day of employment.

Contracts must include:

• Names and addresses of both parties
• Job title and description
• Start date and duration (definite or indefinite)
• Working hours and salary
• Notice period
• Leave entitlements
• Collective agreement references (if applicable)

Contracts must comply with sector-specific Wage Regulation Orders (WROs) where applicable.

🔹 Work Permits & Jobsplus Registration in Malta

    For Employers Hiring Foreign Nationals

• Work Permit Requirements (for Third-Country Nationals – TCNs)

Any employer wishing to hire a third-country national (TCN) in Malta must ensure that the employee obtains a valid Single Work Permit, which allows them to both reside and work in the country.

Application process:

1. Post vacancy on Jobsplus and the EURES portal for at least three weeks within the two months preceding the application for a ‘New (still abroad)’ single permit.
2. Application Submission: Usually submitted by the employer or agent via Identità (formerly Identity Malta).
3. Documents required:

3. Employment contract
4. Job description
5. Employer declaration
6. Passport copy, qualifications, CV, etc.
7. Timeline: Processing may take between 4–8 weeks.

⚠️ The permit is tied to a specific job and employer. A change requires reapplication.

The revised salary thresholds for the KEI and SEI are the following:

• KEI: an annual gross salary of at least €45,000 per annum;
• SEI: an annual gross salary of at least €30,000 per annum;

• APPLICATION FEES

Currently, the fee for submitting a first-time single permit application and a renewal of a single permit is set at €300.

The proposed changes aim to incentivise the retention of the existing foreign workforce and promote more careful and selected endorsement of single permit applications by prospective employers.

The work permit fees will be structured as follows:

1. First-time applications: €600
2. Renewal fee: €150 per year for the duration of the permit
3. Change of employer: €600
4. Change of designation: €300

🔹 4. Jobsplus Registration (for Employers and Employees)

✅ Employer Registration

• Employers must register their business with Jobsplus and obtain access to the Employer Portal.
• Registration includes providing company details, VAT number, and the responsible person’s info.

✅ Employee Engagement

• Employers must submit an Engagement Form to Jobsplus before the employee’s first working day.
• If terminating employment, a Termination Form must also be submitted within 4 days.

🔹 5. Working Hours & Leave Entitlements

• Standard full-time: 40 hours per week (maximum 48 including overtime).
• Leave Entitlements:
  • Vacation Leave: 224 hours per year (based on a 40-hour week)
  • Sick Leave: As per WRO, usually covered by social security after 3 days
  • Maternity Leave: 18 weeks (14 paid by the government)
  • Parental, Carers’, Urgent Family Leave: Governed by specific regulations

🔹 6. Employee Rights & Employer Obligations

👩‍⚖️ Employee Rights

• Equal treatment and non-discrimination
• Safe and healthy working conditions
• Right to written conditions of employment
• Protection from unfair dismissal

🧾 Employer Obligations

• Provide payslips and maintain records
• Register employees with Jobsplus and Social Security
• Pay NI contributions and tax (via FSS system)
• Comply with GDPR for employee data

🔹 7. Termination of Employment

Termination must be lawful and documented. Common reasons:

• Resignation
• Redundancy (must follow fair selection such as LIFO)
• Dismissal (must be justified; e.g. misconduct)

Notice periods:

• 1 week (up to 6 months service)
• 2 weeks (6 months to 2 years)
• 4 weeks (5+ years)

Extension of grace period for TCNs whose employment has been terminated

Under the current legal framework (Immigration Act, Cap 217 of the Laws of Malta), a single permit holder whose employment is terminated must leave Malta immediately. A proposed amendment to national legislation, specifically Subsidiary Legislation 217.17, would introduce a more flexible approach, granting TCNs a 30-day period following employment termination, during which these TCNs may legally remain in Malta to seek new employment. Furthermore, the proposal includes a provision to extend this initial 30-day period by an additional 30 days, bringing the total potential stay to 60 days, contingent upon the TCN demonstrating sufficient financial resources to support themselves without accessing social assistance.