Recent Amendments on Probation and Fixed-Term Contracts of Employments

Act XX of 2022 was enacted on 20th December 2022 to partially transpose Directive (EU) 2019/1152 of the European Parliament and of the Council of 20 June 2019 on transparent and predictable working conditions in the European Union. The aim of this Act is to ensure minimum requirements relating to working conditions applicable to all […]

Written By Christabel Spiteri

On March 9, 2023
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Act XX of 2022 was enacted on 20th December 2022 to partially transpose Directive (EU) 2019/1152 of the European Parliament and of the Council of 20 June 2019 on transparent and predictable working conditions in the European Union.

The aim of this Act is to ensure minimum requirements relating to working conditions applicable to all employment relationships, as defined by law, in every Member State. Some regulations also apply to seafarers with some exceptions. The provisions of this regulation came into force on 1st August 2022.

The amendments are outlined hereunder:

In the case of fixed-term employment contracts, the length of the probation period shall be proportionate to the expected duration of the contract. Renewals of fixed-term contracts for the same function and tasks may not provide for renewed probationary periods.

A fixed-term contract cannot be shorter than six (6) months, unless a shorter period is justified by objective reasons based on precise and concrete circumstances characterising a given activity. When a fixed-term contract period is shorter than six (6) months, the employer must list in writing the objective reasons for which the contract is entered into for less than six (6) months. In this case, the probationary period must be one-third of the duration of such fixed-term contract.

In a fixed-term contract of between six (6) months and fifteen (15) months duration, the probationary period shall be calculated on the basis of two (2) months probationary period per six (6) months contract duration.

If the fixed-term contract exceeds fifteen (15) months’ duration, the probationary period shall be of six (6) months.

With regards to employees holding technical, executive, administrative or managerial posts and whose wages are at least double the minimum wage, a probation period of twelve (12) months shall apply.

The Act also provides for the suspension of the probationary period in the case of any two (2) or more weeks of approved leave, whereby such probationary period shall be extended to the corresponding duration of the leave. During the suspension period of the probation the employer cannot dismiss an employee.

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For further information, please contact us on [email protected]. ACT can help you understand the changes to the income tax, accounting, corporate and VAT rules and how these can impact your business.   

 

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Disclaimer: This article contains general information only and is not intended to address the circumstances of any particular individual or entity. ACT, by means of this article is not rendering any accounting, business, financial, investment, legal, tax, or other professional advice or service. This article is not a substitute for such professional advice, nor should it be used as a basis for any decision or action that may affect your finances or your business. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. Before making any decisions or before taking any action that may affect your finances or your business, you should consult a qualified professional adviser. ACT shall not be responsible for any loss whatsoever sustained by any person who relies on this article.  

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