Termination During Probationary Periods

Termination during Probation in Malta

For both definite and indefinite contracts of employment, Maltese law provides for the possibility of imposing a probationary period during which both the employer and the employee may terminate employment without providing a reason, provided that a one-week prior notice must be given should the employee have been in employment for more than one month.

The parties may also decide to contract out of such a probationary period all together.

Suspension of the Probationary Period

In terms of law, the probationary period shall be suspended in the case of any two weeks or more of approved leave, wherein upon the employee’s return to work, the probationary period shall be extended to a corresponding duration of the leave.

In this regard, an employer cannot dismiss an employee during the period of suspension of probation.

Once the probationary period, if any, has lapsed, as regards definite term contracts, such contracts cannot be terminated prior to the expiration of the stipulated term, except on the basis of “good and sufficient cause”.

As regards the termination of indefinite term contracts following the expiration of the probationary period, if any, such contract may be terminated by the employer on the grounds of:

• good and sufficient cause;
• redundancy; or
• reaching retirement age.

Key Tips:

• Special rules apply to employees who are pregnant or on maternity leave or who have suffered a work injury.
• Beware – the Probationary Period is not a blank cheque to do all that one pleases. Employers are still bound by employment and related laws. So, although a termination may take place without the employer needing to give a reason, this does not mean that an employee can be subjected to illegal behaviour as would be, for instance, harassment or discrimination.

How we help: Get in touch to learn more about probationary periods, the permitted length, and how best to deal with termination during a probationary period