Termination of a fixed term working contract in Malta

Hello,

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: https://dier.gov.mt/en/Employment-Condi … 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 :)

Julia

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'

http://yesitmatters.com/resources/emplo … 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:

http://yesitmatters.com/resources/employment/

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: [email protected]

https://dier.gov.mt/en/About-DIER/Conta … 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:

http://yesitmatters.com/resources/emplo … 3c0d9-4fdb

Hi, I wanted to ask you how it worked out for you? Were you able to resign without paying the fee simply stating personal reasons?
Cheers!

I've heard of companies taking people to court and winning using this fixed term contract clause, I have been hesitant to sign a fixed term contract here because of it. The employment law states that if the contract of employment is terminated or abandoned for good and sufficient cause, no liability will be incurred by the employer or the employee. The problem is that the the legislator failed to provide a clear definition of what might constitute "good and sufficient cause" so you have to rely on what the Courts or the Industrial Tribunal decide is or isn't satisfactory reason to leave the contract.

Did you leave your place of employment without an issue?

Has anyone else had dealings around this kind of contract here in Malta?

Hey,

I need your help!

I worked for 7months in a Maltese company with an indefinite contract. I stoped for 2 months and re-signed another one few days ago on definite contract starting the 22nd of April with a 6months probation period.

I got a better opportunity abroad and I would like to give my notice now but I don't know if my first contract count when I need to calculate my notice period. If it does not count, I don't have any notice period, I can leave anytime.

But do I need to present the first day of my contract?

I've saw this:
​​"A Fixed Term Contract can be terminated during its applicable probation period without assigning any reason. However, one week notice (by either party) applies if the employment exceeds one month."

Also what are the good and sufficient causes to leave it? Sickness?

Thanks, I'm so lost

Mathilde555 wrote:

Hey,

I need your help!

I worked for 7months in a Maltese company with an indefinite contract. I stoped for 2 months and re-signed another one few days ago on definite contract starting the 22nd of April with a 6months probation period.

I got a better opportunity abroad and I would like to give my notice now but I don't know if my first contract count when I need to calculate my notice period. If it does not count, I don't have any notice period, I can leave anytime.

But do I need to present the first day of my contract?

I've saw this:
​​"A Fixed Term Contract can be terminated during its applicable probation period without assigning any reason. However, one week notice (by either party) applies if the employment exceeds one month."

Also what are the good and sufficient causes to leave it? Sickness?

Thanks, I'm so lost


It appears the second contract is a new contract, because the conditions are different. During the probation of 6 months the notification period for termination is one week after the first month of employment. In this case, as you have not yet started your new employment with effect from 22nd April just notify your employer accordingly and you can leave anytime.

Hanselmar,

Thank you for your answer,

I've read that if you have 2 contracts with less than six months between those two, then you keep the seniority.

Is that true?

Mathilde555 wrote:

Hanselmar,

Thank you for your answer,

I've read that if you have 2 contracts with less than six months between those two, then you keep the seniority.

Is that true?


Here a general statement is not possible. It really depends on the working conditions and rules of the respective employer. In other words in some companies it is applicable whilst in others you may have to start from scratch again. However, this does not effect the notification period for termination unless it is specified in your working contract. What eventuelly counts is your working contract. The working contract is the legal frame for any employment. The only exception is when the working contract is contrary to the laws of the country.

Thank you so much!!!