Handling Redundancies with Expertise and Empathy: Navigate the Legal and Human Complexities in Malta

Business conditions change, and sometimes economic downturns, restructuring, or strategic shifts make redundancies unavoidable. In Malta, these situations hold particular legal weight and have far-reaching human consequences. At Contact Advisory Services Ltd. (CAS Ltd.), we offer clear guidance for employers facing redundancy decisions. Our goal is to ensure your process is legally sound, financially optimized, and considerate of the departing employees you’ve valued.

Understanding Redundancy in the Maltese Context
In Malta, redundancy occurs when you eliminate a job or position due to business reasons rather than due to an employee’s performance or conduct. Legitimate economic grounds must exist, such as:

• Closure or Reorganization: Company closure, major restructuring, or merger impacting specific positions.
• Technological Changes: New technology eliminating the need for certain roles.
• Economic Hardship: Market downturns leading to the necessary shrinkage of the workforce.
• Outsourcing: Shifting specific functions to external service providers.

Redundancy is NOT Termination for Cause
It’s critical to understand that redundancy isn’t a means to dismiss underperforming employees or a punishment for misconduct. Strict legal requirements must be met, and transparent selection criteria are vital:

• Consultation: Employees and their representatives (unions, if applicable) must be meaningfully consulted on potential redundancies and redundancy selection plans.
• Objective Selection Criteria: Decisions on who will be made redundant must be based on fair factors like skills, experience, length of service, and not based on discriminatory grounds.
• Notice Periods: Legally required notice periods (dependent on length of service) must be respected, or payment in lieu provided.
• Redundancy Packages: In addition to any mandated minimum payments,redundancy compensation packages can be a considerate means to ease the transition for employees.

Proactive Planning for Best Outcomes
Careful planning minimizes uncertainty and risks during difficult redundancy situations. CAS Ltd. assists you with:

• Scenario Analysis: We delve into potential business or financial shifts that may create future redundancy requirements and help you formulate contingency plans.
• Proactive Communication: Open and timely communication with potentially affected employees and their representatives is vital, both as a legal requirement and as a sign of respect.
• Alternatives Exploration: Whenever possible, exploring redeployment options,job-sharing, or voluntary arrangements can help minimize the number of forced redundancies.
• Redundancy Packages: Design compensation packages that align with both legal requirements and your company’s values while striking a balance for a sustainable business.

The Human Element: Supporting Departing Employees
Beyond legal mandates, we believe handling redundancies responsibly means being mindful of their emotional impact. We help you consider these options:

• Outplacement Services: Providing outgoing employees with resources for effective job searching, skill development, and resume updates.
• Career Counseling: Offering emotional support and practical guidance to help individuals navigate transitions with career advisors.
• Respectful Process: Emphasizing transparency, open communication, and respectful handling of departures can preserve your company’s reputation as an employer of choice.

The Power of Partnership: Navigate Redundancy Challenges with CAS Ltd.
Redundancies require skillful navigating of legal complexities, financial limitations, and emotional aspects. Benefits of partnering with us include:

• Compliance Support: Ensuring your processes adhere to Maltese employment laws and minimize the risk of claims and penalties.
• Strategic Approach: Balancing human cost with necessary business changes,helping you develop a strategy with the smoothest transitions possible.
• Tailored Options: Designing redundancy packages and support services customized for your business and industry practices.

Let us support you through necessary business changes.

Get in touch with Contact Advisory Services Ltd. today, gain insight into your obligations, and manage redundancies with fairness and consideration.