Termination of a fixed term working contract in Malta


Usually I'm just reading this forum to find quick advice but now I wasn't able to find information about the problem I have. I hope somebody can help me :)

I'm working since May 2017 with a company but for a while now I'm looking for a new job, because I'm not really happy. Now I probably found a new one (I'm only waiting for the confirmation but they already asked me when I would be able to start) and was therefore checking the legal termination notice period.
My problem: I'm having a 2 year contract. I didn't think anything bad when I signed it but now I've found this information regarding the termination:

“Where there is not a justified reason to terminate an employment that is on definite basis after the probation period, the party who breaches the contract is liable to pay the other party a sum equal to one-half of the full wages that would have accrued had the contract of employment remained in force.“ (source: … racts.aspx)

Do I have to pay in any case this "penalty“? I have more than one year left, so it would be a lot, and I won't be able to pay this. Or did I understand anything wrong? For me it seems weird that I cannot quit my job.
I hope that there is a solution or that I only understood something wrong.

Any help or advice is appreciated.
Thanks :)


Re: Your question -: ‘….Do I have to pay in any case this "penalty“?.....’

Response: No, you don’t - if you give your current employer the lawfully prescribed notice period of your intention to terminate your employment.

1) In this regard, please see: ‘Fixed Term Contract Notice Periods’ … mployment/

2) The following section provides essential information on conditions of employment, minimum wages and leave conditions for all sectors, statutory bonuses, Cost Of Living Allowance, employee tax rates, employer and employee social security rates and public holidays, and provides links to employment forms, legislation and publications.

This section will be of interest to employers and employees:

3) To avail of free of charge advice and guidance regarding your specific question as well as enforcement of your employment rights - including the retroactive payment of your salary, bonuses and various leave entitlements - contact the Department of Industrial and Employment Relations, 121 Melita Street, Valletta, VLT 1121

Telephone: (+356)21224245/6

E-mail: ind.emp.relations[at] … ct-Us.aspx

Why not simply terminate the job contract with a "justified reason"?

According to the Maltese Workers Union, the following sentence is sufficient for a termination with a justified reason (I applied this 5 times here, it always worked  :D ):

"I am resigning herewith from my position as “xxxx” for personal reasons, effective xx.xx.201x(last working day)."

but it's always better to (kind of) specify any "personal reason", e.g. I used the following explanations: "my professional long-term goals do not benefit from the duties of my current position and the lack of support from my superiors" or "the differences between my working ethics and the corporate culture could not be overcome" etc. ... ok, I know, I've never been a good employee  :P

Thanks for your reply!
Yes, I was wondering what I justified reason could be, I didn't think it's that easy! Thanks!
Besides, I discovered that my contract says on one page indefinite and on another that's it's for two years, so I already hope they won't make big problems (don't ask me how this contradiction is even possible haha).
My worries now are definitely less, thanks :)

Please see - How to deal with notice money when Employer receives notice from Employee: … 3c0d9-4fdb

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