Labour Hire Contract for Malta

Labour Hire Contract Template for Malta

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Labour Hire Contract

"I need a Labour Hire Contract for providing IT contractors to financial services companies in Malta, with specific provisions for data protection and cybersecurity compliance, starting from March 2025."

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What is a Labour Hire Contract?

The Labour Hire Contract serves as a fundamental document for temporary employment arrangements in Malta, establishing the legal framework for triangular employment relationships between labor hire agencies, workers, and host companies. This document is essential when businesses require flexible staffing solutions while ensuring compliance with Maltese employment law, particularly the Employment and Industrial Relations Act and Temporary Agency Workers Regulations. It's designed to protect all parties' interests by clearly defining responsibilities, assignment procedures, remuneration structures, and working conditions. The contract is particularly relevant in today's dynamic business environment where companies need adaptable workforce solutions while maintaining legal compliance and worker protection standards under Maltese jurisdiction.

What sections should be included in a Labour Hire Contract?

1. Parties: Identifies the labor hire agency (the employer), the worker, and the host company

2. Background: Explains the context of the agreement and the nature of the labor hire arrangement

3. Definitions: Defines key terms used throughout the agreement including 'Assignment', 'Host Company', 'Services', and other relevant terms

4. Nature of Engagement: Specifies the temporary agency work relationship and clarifies that the agreement creates an employment relationship with the agency

5. Duration and Assignment Terms: Details the term of employment and how specific assignments will be allocated and managed

6. Duties and Obligations: Outlines the worker's duties, reporting requirements, and professional standards expected

7. Remuneration and Benefits: Specifies salary, payment terms, and any benefits provided, ensuring compliance with minimum wage requirements

8. Working Hours and Leave: Details standard working hours, overtime provisions, and leave entitlements as per Maltese law

9. Health and Safety: Outlines health and safety obligations of all parties in accordance with Maltese regulations

10. Confidentiality: Specifies confidentiality obligations regarding both the agency and host company information

11. Data Protection: Addresses handling of personal data in compliance with Maltese Data Protection Act

12. Termination: Details circumstances and procedures for termination of employment

13. Governing Law and Jurisdiction: Confirms Maltese law as governing law and establishes jurisdiction for disputes

What sections are optional to include in a Labour Hire Contract?

1. Mobility Clause: Required when workers may be assigned to different locations or host companies

2. Training Requirements: Included when specific training or certifications are required for assignments

3. Non-Compete Clause: Used when restrictions on working for competitors or host companies directly are needed

4. Vehicle and Equipment: Included when the worker needs to use specific equipment or vehicles

5. Commission Structure: Required when payment includes performance-based compensation

6. International Assignments: Needed for contracts that may involve cross-border work within the EU

7. Collective Agreements: Required when the worker falls under a collective agreement

8. Insurance Coverage: Included when specific insurance requirements apply to the role

What schedules should be included in a Labour Hire Contract?

1. Schedule 1 - Assignment Details: Template for recording specific assignment details including host company, location, duties, and duration

2. Schedule 2 - Remuneration Structure: Detailed breakdown of pay rates, allowances, and benefits

3. Schedule 3 - Host Company Policies: Reference to or summary of relevant host company policies that the worker must comply with

4. Schedule 4 - Health and Safety Procedures: Specific health and safety requirements for different types of assignments

5. Schedule 5 - Equipment List: Inventory of any equipment provided to the worker

6. Appendix A - Code of Conduct: Agency's code of conduct and professional standards

7. Appendix B - Grievance Procedures: Detailed procedures for raising and handling grievances

8. Appendix C - Leave Policies: Detailed policies regarding various types of leave entitlements

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 | Serial Founder & Legal AI Author

Clauses
Relevant Industries

Construction

Manufacturing

Healthcare

Information Technology

Hospitality

Logistics and Transportation

Retail

Financial Services

Professional Services

Industrial

Agriculture

Maritime

Tourism

Education

Relevant Teams

Human Resources

Legal

Operations

Recruitment

Compliance

Finance

Administration

Risk Management

Workforce Planning

Employee Relations

Relevant Roles

Temporary Worker

Contract Employee

Skilled Tradesperson

Administrative Assistant

Project Manager

IT Specialist

Healthcare Worker

Construction Worker

Warehouse Operator

Customer Service Representative

Financial Analyst

Sales Representative

Technical Consultant

Manufacturing Operator

Logistics Coordinator

Industries
Employment and Industrial Relations Act (Chapter 452 of the Laws of Malta): Primary legislation governing employment relationships in Malta, covering fundamental employment rights, conditions of employment, and industrial relations
Temporary Agency Workers Regulations (S.L. 452.106): Specific regulations governing temporary agency work, ensuring equal treatment of agency workers and establishing rights and obligations of temporary work agencies
Equal Treatment in Employment Regulations (S.L. 452.95): Ensures non-discrimination in employment and equal treatment regardless of gender, race, sexual orientation, age, religion, or disability
Protection of the Whistleblower Act (Chapter 527): Provides protection for employees who report wrongdoing, which must be acknowledged in employment contracts
Minimum Special Leave Entitlement Regulations (S.L. 452.101): Regulates minimum leave entitlements including vacation leave, sick leave, and other special leave provisions
Data Protection Act (Chapter 586): Implements GDPR requirements in Malta, crucial for handling employee personal data in employment contracts
Occupational Health and Safety Authority Act (Chapter 424): Sets out health and safety obligations that need to be referenced in employment contracts
Employment Status National Standard Order (S.L. 452.108): Defines employment status and helps distinguish between employment and self-employment relationships
Posting of Workers in Malta Regulations (S.L. 452.82): Relevant for cross-border labor hire situations within the EU
National Minimum Wage National Standard Order (S.L. 452.71): Establishes minimum wage requirements that must be respected in employment contracts
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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