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Navigating Notice Periods and Garden Leave in Malta

Navigating Notice Periods and Garden Leave in Malta

Clear, practical guidance for employees and employers in Malta on notice periods and garden leave, with local tips for Valletta, Sliema, St Julian’s and the island’s key sectors.

On a small market like Malta, how you leave a role can be as important as how you join one — respect and clarity matter.
— Malta-based recruiter
Before signing anything, check notice, pay, benefits and any garden leave wording — and get it in writing.
— HR manager in Sliema
Why notice periods and garden leave matter in Malta right now

Why notice periods and garden leave matter in Malta right now

On a small island labour market like Malta, how you leave a job can matter as much as how you start one. With busy hubs in Valletta, Sliema, St Julian’s and growing shared-service, iGaming and finance centres in Birkirkara and Msida, employers are protective of client relationships, confidential systems and intellectual property — which is why notice clauses and garden leave are common, particularly in senior or sensitive roles.

This article explains what notice periods and garden leave look like in practice, how to read your contract, and practical steps both employees and HR teams can take to keep transitions professional and legally safe. It’s aimed at a range of readers: Maltese residents, EU and non‑EU workers, and anyone considering a move between sectors such as hospitality, finance or tech.

  • Common in senior, finance and iGaming roles where data and client contacts are sensitive
  • Affects your last working day, pay, benefits and ability to start a new job
  • Often included alongside non-compete and confidentiality clauses
What garden leave is — and when employers use it

What garden leave is — and when employers use it

Garden leave (sometimes called garden-leave) is when an employer asks an employee to stay away from the workplace during their notice period while remaining employed and paid. Employers typically use it to protect sensitive information, remove immediate access to clients or systems, or limit the outgoing employee’s influence during the handover.

In Malta this tool is commonly used in financial services, iGaming, and for senior roles in tourism and hospitality — sectors where client lists, platform access and regulatory responsibilities matter. If your contract mentions garden leave, read the wording carefully: it should state what you are paid, whether you can take annual leave during that period, and what company property or systems must be returned.

  • Typical reasons: protect clients, prevent data leakage, remove competitive risk
  • Usually applied in senior or highly connected roles
  • You remain on payroll, but duties and workplace access change
How to read and negotiate your notice period clause

How to read and negotiate your notice period clause

Your employment contract is the primary reference: check the length of notice, any probation arrangements, and whether the employer can give pay in lieu of notice (PILON) or enforce garden leave. Contracts may also cross-reference company policies or handbooks — make sure you have the full documentation.

Negotiation is often possible, especially in smaller Maltese companies or for valued staff. If you plan to resign, give notice in writing and keep records. If an employer asks you to accept garden leave, ask for clarity on pay, benefits continuation (health insurance, pension contributions), and whether you may job‑hunt during the period. HR or a local employment lawyer can help if clauses are ambiguous.

  • Check notice length, PILON, garden leave, probation and benefits continuation
  • Ask whether accrued holiday will be paid or must be taken during notice
  • Negotiate start/end dates and any restrictions on job-seeking or outside work
Practical checklist when you receive a notice or are offered garden leave

Practical checklist when you receive a notice or are offered garden leave

Use a practical checklist to avoid surprises during a transition. Confirm in writing the last effective employment date, what you will be paid, whether benefits continue and what access or devices must be returned. If you are on a work permit, check whether the permit is employer‑tied and how a termination affects your legal status in Malta.

Keep the process professional: request a written reference or settlement of outstanding bonuses where appropriate, lock down personal data on company devices, and be mindful of confidentiality obligations. If you are unsure about tax or social security consequences of payout in lieu versus working the notice, seek advice from an accountant familiar with Maltese systems.

  • Confirm last day, pay, benefits, and device return in writing
  • Check work permit implications with Jobsplus/Immigration authorities if relevant
  • Ask about references, outstanding bonuses, and any restrictive covenants

Next steps: planning your job search and protecting your reputation

If you’re moving on, create a 30–90 day plan: update your CV and LinkedIn, network in hubs like St Julian’s and Sliema, contact recruitment agencies that specialise in iGaming or finance, and prepare to explain any garden leave professionally in interviews. For local employers, emphasise your knowledge of Maltese regulatory or sector specifics when relevant.

If you’re an employer, handle notice and garden leave fairly: set clear expectations, preserve confidentiality without over‑restricting an employee’s right to work afterwards, and document decisions to avoid disputes. In Malta’s close professional community, a smooth, respectful exit protects both parties’ reputations and future opportunities.

  • Update CV, plan outreach to recruiters and local hiring hubs
  • Be transparent but professional about garden leave in interviews
  • Employers should balance protection of assets with fairness and documentation

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