Company Termination Policy Template for Malta

A comprehensive employment document governed by Maltese law that establishes the formal procedures and guidelines for all types of employment terminations within an organization. The policy ensures compliance with the Employment and Industrial Relations Act (EIRA) of Malta and relevant EU regulations, covering various aspects of employment termination including voluntary resignations, dismissals, redundancies, and retirement. It outlines specific procedures, notice periods, final settlements, and exit processes while incorporating safeguards to protect both employer and employee rights under Maltese jurisdiction.

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What is a Company Termination Policy?

The Company Termination Policy serves as a crucial governance document for organizations operating under Maltese law, providing a structured framework for managing all aspects of employment termination. This document becomes essential when organizations need to ensure consistent, fair, and legally compliant handling of employment terminations, whether through resignation, dismissal, redundancy, or retirement. The policy incorporates requirements from Malta's Employment and Industrial Relations Act, relevant EU directives, and local employment regulations, making it particularly important for companies operating in Malta's dynamic business environment. It includes detailed procedures for notice periods, final settlements, exit interviews, and the return of company property, while also addressing specific requirements for different employee categories and termination scenarios.

What sections should be included in a Company Termination Policy?

1. Purpose and Scope: Defines the purpose of the policy and its application scope within the organization

2. Definitions: Clear definitions of key terms used throughout the policy including types of termination, notice periods, and other relevant terminology

3. Legal Framework: Reference to relevant Maltese employment laws and EU regulations governing employment termination

4. Types of Employment Termination: Comprehensive overview of different types of termination (resignation, dismissal, redundancy, retirement)

5. Notice Periods: Detailed information about statutory and contractual notice periods for different employee categories

6. Disciplinary Procedures: Step-by-step process for disciplinary actions that may lead to termination

7. Redundancy Procedures: Process for handling individual and collective redundancies including selection criteria

8. Final Settlement Procedures: Process for calculating and paying final settlements including unused leave, bonuses, and other entitlements

9. Return of Company Property: Requirements and procedures for returning company assets and information

10. Exit Procedures: Standard procedures for employee departure including exit interviews and handover requirements

What sections are optional to include in a Company Termination Policy?

1. Collective Redundancy Procedures: Detailed procedures for mass layoffs, to be included if company size makes this relevant

2. Garden Leave: Provisions for garden leave arrangements, relevant for senior positions or roles with access to sensitive information

3. Post-Employment Restrictions: Non-compete and confidentiality provisions, relevant for senior positions or specific roles

4. International Employee Provisions: Special provisions for international employees, relevant for companies with expatriate staff

5. Early Retirement Schemes: Procedures for early retirement programs, relevant if company offers such schemes

6. Appeals Process: Formal process for appealing termination decisions, recommended for larger organizations

What schedules should be included in a Company Termination Policy?

1. Schedule 1: Notice Period Tables: Detailed tables showing notice periods by employee category and length of service

2. Schedule 2: Termination Checklist: Comprehensive checklist for HR to ensure all termination procedures are followed

3. Schedule 3: Exit Interview Form: Standard form for conducting and documenting exit interviews

4. Schedule 4: Final Settlement Calculation Template: Template for calculating final payments and settlements

5. Appendix A: Sample Termination Letters: Templates for various types of termination letters

6. Appendix B: Company Property Return Form: Checklist and form for recording return of company property

7. Appendix C: Handover Document Template: Template for documenting handover of responsibilities and ongoing projects

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Malta

Publisher

Genie AI

Document Type

Cost

Free to use

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