Employment Legal Amendments Introduce Proportionality of Probationary Periods for Fixed Term Contracts

On 20 December 2022, legal amendments to the Employment and Industrial Relations Act (EIRA) imposed the obligation of proportionality of probationary periods for fixed term employment contracts.  In line with the new amendments, probationary periods for fixed term employment relationships are applicable as follows:

• No new probationary period shall apply for renewals of fixed term contracts
  This provision applies as long as the renewed employment contract is entered into for the same function and tasks.
• A fixed term contract shall not be shorter than six months
  No fixed term contract shall be shorter than six months unless there are objective reasons based on precise and concrete circumstances such as the replacement of an employee during leave or a specific project.  If the employer is going to enter into a fixed term contract for a duration of less than six months, then the employer shall list such specific circumstances in writing in the employment contract.
• Probationary period for fixed term contracts shorter than six months 
  If the contract is for a fixed term shorter than six months, the probationary period shall be one third of the duration of the contract.
• Fixed term contracts between six and fifteen months
  For fixed term contracts between six months and fifteen months, the probationary period shall be calculated at two months per six months contract duration.
• Fixed term contracts exceeding fifteen months
  For contracts exceeding fifteen-month duration, the probationary period shall be of six months.
• Probation for workers whose salary exceeds double the national minimum wage
  Workers holding technical, managerial, administrative, or executive roles and whose salary exceeds double the national minimum wage shall have a probationary period of 12 months.

Probationary periods may, by mutual agreement, be shorter than the periods stipulated by law.  Furthermore, the probationary period may be suspended if the employee takes approved leave of more than two weeks. In this case the probationary period must be extended by the same duration of the approved leave. The employer may not dismiss the employee during the suspended probationary period.

For further assistance with employment issues as well as drafting of employment contracts and employee handbooks, please contact ECOVIS Malta on malta@ecovis.com.

Related services offered by ECOVIS Malta: Legal consulting; drafting of HR guidelines, manuals, contracts, policies and procedures; Employment Law; EU workplace compliance advisory.