Navigating Employee Dismissals in Malta: Safeguarding Your Business and Upholding Employee Rights
Terminating employment is one of the most difficult areas for employers to navigate. Maltese law offers protections for employees, and missteps can result in unfair dismissal claims, financial penalties, and damage to your company’s reputation. At Contact Advisory Services Ltd. (CAS Ltd.), we understand the complexities involved in dismissals. Our skilled team provides thorough guidance, helping you uphold best practices while minimizing the risk of costly repercussions.

Understanding the Grounds for Dismissal in Malta
Maltese employment law doesn’t take employee termination lightly. Employers must establish “good and sufficient cause” for terminating an indefinite contract. Some potential grounds include:

• Performance-Based Dismissal: Persistent underperformance, failure to meet job requirements after support and opportunities for improvement. Documentation is key in these cases.
• Misconduct: Serious breaches of company policies, violations of trust, or actions damaging the company’s reputation may be grounds for termination.
• Redundancy: Dismissal due to economic downturn, operational changes, or the elimination of a position altogether. Specific steps must be followed.
• Reaching Retirement Age: Employees can be dismissed once they reach the legal retirement age in Malta.

Special Considerations: Probationary Periods & Fixed-Term Contracts

• Probationary Periods: During a probationary period (if specified in the contract),terminations may be possible with reduced notice requirements. However, it’s crucial to understand your obligations and document clear reasons.
• Fixed-Term Contracts: Contracts with a set end date naturally expire unless renewed. If early termination is necessary, specific grounds for dismissal still apply.

The Importance of Proper Procedures
Even with “good and sufficient cause,” how the dismissal is handled procedurally is vital under Maltese law. CAS Ltd. guides you through essential steps to ensure the process is lawful and upholds fairness, including:

• Documentation: Thorough documentation of performance issues, disciplinary actions, and warnings given to the employee before resorting to dismissal.
• Notice Periods: Adhering to legal or contractual notice periods, or providing payment in lieu of notice if dismissal is immediate.
• Right of Reply: Giving the employee an opportunity to respond to allegations and present their side of the situation.
• Fairness and Consistency: Demonstrating objectivity in your decision-making,applying standards consistently, and avoiding discriminatory practices.

When Dismissals Become Disputes: Representation Before the Industrial Tribunal
Despite your best efforts, dismissed employees may contest the termination by filing an unfair dismissal claim with the Industrial Tribunal. CAS Ltd. acts as your advocate:

• Building Your Case: Meticulously gathering evidence, supporting documentation,and witness statements to defend the decision and counter any claims of unfair practices.
• Tribunal Representation: Providing thorough preparation and assertive representation on your behalf throughout the Industrial Tribunal process.
• Alternative Dispute Resolution: If feasible, exploring the potential for settlement or mediation to find a quicker resolution agreeable to both parties.

CAS Ltd.: Expertise you can rely on
Employee dismissals require a combination of legal knowledge, adherence to fair procedures, and strategic risk assessment. We offer:

• Proactive Counsel: We work with you to establish robust disciplinary and performance management processes to minimize potential dismissal scenarios proactively.
• Risk Mitigation: Thorough case assessment helps you weigh the potential consequences of termination against other avenues to protect your business interests.
• Protection in Difficult Situations: When dismissal is unavoidable, we safeguard your compliance and guide you through the steps for a fair and legally sound process.

Prioritize a Lawful and Respectful Workplace
Employee dismissals shouldn’t be taken lightly. Improperly handled terminations can damage relationships, morale, and your company’s reputation. Partnering with CAS Ltd. means getting professional advice and procedural support you can trust.

Get in touch with Contact Advisory Services Ltd. today to navigate employee dismissals confidently in Malta.