Work Contract for Service Providers

Work Contract for Service Providers
Updated on
February 14, 2023

A work contract to provide services in Malta is also known as an employment contract and it serves as a security device for the employer and employee. It details rules and employment conditions, how to settle disputes and a pledge from the employee to offer services to the employer in return for wages. Any contract, whether verbal or written is deemed valid and enforceable by law.

The contract should include details regarding terms of employment, benefits and remunerations, ways of altering the social conditions of the terms of the contract like sick pay and notice period. You can have your terms of contract delivered verbally, negotiated or through a collective agreement where each party understands the breach of terms. In case the contract is breached, there are various options to resolve the issue, either formally or informally. It can range from mediation to legal action to arbitration and eventually, via the civil courts.

Nonetheless, it is not a must that contracts of employment fall under a traditional setting as they can be service contracts where an employee renders services to a contracting party. Such an agreement will have terms regarding the service and payments to the employee and feature delivery details, penalties and dispute arbitration channels, among others.

In case there is no written work contract signed by both parties, the employer should provide the employee with a signed statement that includes:

  • The date the employee started working
  • Probation period
  • Payable rates of wages
  • Overtime wage rates
  • Normal working hours
  • Paid vacations, holidays and other leaves entitled to the employee
  • Wage payments intervals
  • Agreed contract period
  • Collective agreement if there is any
  • Conditions for imposing fines by employers
  • Title, position and nature of the work for the employee

The Employer’s Statement

In case a written work contract that has been signed by both parties exists, it should include the above information. If the employment period is more than thirty days and more than eight working hours per week, the employee should be provided with a copy of the service contract that has been signed by the employer not later than 8 days after the contractor starts working. A copy should also be kept by the contracting party.

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