Notice Period Calculator
Calculate the notice period and related payouts for a Malta based employment using a few key pieces of information.
Calculate the notice period and related payouts for a Malta based employment using a few key pieces of information.
Deciding to leave a job or to let go of an employee is never easy. Although the timing may never feel right, one has to consider the Notice Period when submitting a letter of resignation or issuing a letter of termination. Whether you are an employer or an employee, should you disregard the legal obligations of the notice period, you will end up liable to pay the other party a sum of money, which you could avoid paying by understanding your rights and duties.
In this article, we’ll give you the necessary information to help you make an informed decision on where the notice period is concerned.
The notice period is the length of time spanning when the employer/employee is informed of the termination of the employee’s work contract and when the termination becomes effective. In clear terms, the notice period begins when an employee submits his resignation letter or when the employer gives the employee a termination letter and ends when the employee is expected to stop working.
When employment is being terminated, a notice is generally given by either the employee or the employer. In most circumstances, the employee continues to work for the remainder of the notice period. In practice, this allows the employer to find a suitable replacement to minimise disruption to the business while also giving the employee time to search for a new job or income.
Both employer and employee can terminate the employment before the notice period ends. However, the party who terminates would be liable to pay compensation to the other party. In this article, we will discuss the duration of the notice periods, as well as how much compensation would be owed in these scenarios.
The duration of the notice period varies according to how long the employee has been employed. This section only refers to employees who are not on fixed contracts but on indefinite employment.
Our notice period calculator (at the top of this page) is a simple and efficient tool for correctly calculating your notice period days. Try it now!
Want to learn more about calculating your notice period? The table below shows how many weeks of notice period each employee is obliged to by law, based on the duration of their employment.
| Employed for | Notice Period Duration |
|---|---|
| Less than 1 month | None |
| 1 month - 6 months | 1 week |
| 6 months - 2 years | 2 weeks |
| 2 years - 4 years | 4 weeks |
| 4 years - 7 years | 8 weeks |
| 7 years - 8 years | 9 weeks |
| 8 years - 9 years | 10 weeks |
| 9 years - 10 years | 11 weeks |
| 10 years or more | 12 weeks |
For longer periods of employment in technical, administrative, managerial or executive positions, an agreement between the employer and employee can be made to grant a longer notice period.
When employees are on fixed contracts, the rules regarding notice change significantly. If the employee is on probation, they are entitled to a maximum of 1 week notice period, should they have worked more than one month. On the other hand, no notice periods are applicable after the probation period ends.
If either party decides to terminate the employment after the probation period, this is considered a breach of contract unless justified. When one party breaches the contract, they are obliged to pay the other party half of the wages that would have been accumulated should the contract have been completed.
As we discussed in our introduction, the notice period is usually worked by the employee, after which they are terminated.
However, there are exceptions where the employee may decide not to work this notice period, or the employer does not allow the employee to go to work. In such cases, either the employee or the employer will receive compensation for the unexpired notice period. Below is a detailed explanation of how much is owed.
| Employee Does not Work | Employer does not allow the employee to work | |
|---|---|---|
| Employee Hands in Notice | Employee pays 50% of wages | Employer pays 100% of wages |
| Employer Gives Notice | Employer pays 50% of wages | Employer pays 100% of wages |
If the employer refuses to allow the employee to work the notice period or part thereof, the employer is to pay the employee a sum equivalent to the full wages for the unexpired period. This is regardless of whether the employee handed in the notice or whether the employer gave the notice to the employee.
On the other hand, if the employee decides not to work a portion of the notice period, the compensation is owed based on who handed in the notice. If the employee gave in the notice and decided not to work, the employee owes the employer a sum equal to half the wages of the unexpired portion of the notice period.
Additionally, suppose the employee receives the notice from their employer and decides not to work the notice period. In that case, the employer is liable to pay half the wages of the unexpired period to the employee.
There are only a few exceptions in the cases of good sufficient causes. Suppose employment is terminated due to these circumstances, such as disciplinary action or medical condition, then the notice period may be waived by law, and thus any compensation would also be waived.
Let’s go through a couple of possible scenarios. Jane has worked with ABC Company for three years, and she decided to hand in her notice, which is for four weeks. After she has worked one week of her notice, her employer tells her to stop working as she is no longer needed. In this case, the employer has to pay Jane her salary until termination and compensation for the full three weeks of the unexpired notice period.
In another example, Gary received the notice from his employer after eight months of employment. Gary decides that he will not turn up for work anymore and requests that he is paid for the notice period. In such a case, the employer is to pay Gary 50% of the wages for two weeks, equivalent to a wage of 1 week.
Giuseppe has stopped showing up for work after three months of employment in one last example. Since Giuseppe has abandoned the employment, he is obliged to pay 50% of the employer's notice period of 1 week.
Lastly, let us consider Diandra, who is on a fixed contract for a year, with a probation period of 6 months. If she decides to quit her employment in the 7th month, she would have to pay half of the wages for the remaining five months. Contrarily, if the employer were the one who dismissed her without justifiable reason, the employer would be obliged to pay half the remaining wages.
When employment is terminated, the employer must submit a declaration of termination of employment form to JobsPlus. The termination form includes key details such as the date of termination and the reason for termination.
Moreover, another consideration when an employee is terminated is their leave balance. If the employee has any amount of vacation leave balance that they have not yet utilised, this is to be paid on their final payslip after termination. On the other hand, if the employee took more leave than they would be entitled to, the employer may request an amount equal to the sum of extra leave to be paid back as Civil Debt.
Along with the final payment, the employer should also give the employee any entitlements. In particular, the employee is to receive a proportion of the government bonuses (weekly allowance and statutory bonus) until the termination date.
It’s always advisable that an employee gives their employer the notice period required by law. This saves the employee money, but it also helps them not to burn bridges with their employer. Even in the event of a termination of employment, the employee is required to work dutifully through the terminations notice period. This is the best way for an employee to leave on a high note.
Armed with this information, you can now write that letter of resignation or termination with confidence. Feel free to use our Notice Period Calculator for quick and efficient results. It’s straightforward and free to use!
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