- Phase
- Cap. 452 - Employment and Industrial Relations Act, 2002
- Native name
- Kap 452 - Att dwar l-Impiegi u r-Relazzjonijiet Industrijali, 2002
- Type
- Severance pay/redundancy compensation
- Added to database
- 08 May 2015
Description
There is no legal severance pay or redundancy compensation other than the compensation in lieu of notice relating to redundancies.
Compensation in lieu of notice relating to redundancies
- Redundancies involving contracts for an indefinite period of employment:
On receiving notice from the employer, the employee has the option to either continue to work during the notice period, or to request the employer to pay him/her a sum equal to half the wages that would be payable in respect of the unexpired period of notice.
If the employer decides not to allow the employee to continue to work during the notice period, the employer is obliged to pay to the employee a sum equal to the full wages that would be payable in respect of the unexpired period of notice.
- Redundancies in cases involving fixed-term contracts:
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.
Citation
Eurofound (2015), Malta: Severance pay/redundancy compensation, Restructuring legislation database, Dublin,
https://apps.eurofound.europa.eu/legislationdb/severance-payredundancy-compensation/malta