LIVING AND WORKING CONDITIONS IN MALTA

JANUARY 2015 UPDATE

EURES Malta

E: [email protected]

T: 80076505/ +356 2220 1260/7 Contents Short overview of the labour market ...... 1 Labour Situation – July - September 2014 (Q3) ...... 1 The Employed Population ...... 1 The Unemployed Population ...... 1 Where are the available jobs? ...... 1 Where are the available workers? ...... 2 Finding a job ...... 3 How to find a job ...... 3 How to apply for a job ...... 3 Moving to another country...... 4 Movement of goods and capital ...... 4 How does the single market work? ...... 4 Free movement of capital ...... 4 Finding accommodation ...... 4 Rental of property ...... 4 Purchase of property ...... 5 Finding schools ...... 5 Taking a car with you (includes information on driving licences) ...... 5 Driving licences ...... 5 Registering a car ...... 6 Car insurance when moving in the EU/EEA ...... 6 Tax issues when buying a car ...... 6 Registration procedures and residence permits ...... 6 The Residence Permit ...... 6 Checklist for before and after you arrive in a country ...... 7 Before arriving ...... 7 After arriving ...... 7 Working conditions ...... 8 Overview of Working Conditions in Europe ...... 8 Improving the quality of working life ...... 8 Social Dialogue ...... 8 Health and safety at work ...... 8 Setting minimum requirements ...... 9 Ending employment ...... 9 Representation of workers ...... 9 Labour disputes - strikes ...... 10 Strikes ...... 10 Vocational training ...... 10 EU initiatives to promote vocational training ...... 10 EU organisations that support vocational education ...... 11 Recognition of diplomas and qualifications ...... 11 Recognising professional qualifications ...... 11 Kinds of employment ...... 11 Employment contracts ...... 12 Amendments to employment contracts ...... 13 Special categories ...... 13 Young Workers...... 13 Workers with a disability ...... 14 Self-employment ...... 14 Remuneration ...... 14 Working time ...... 15 Organisation of working time ...... 15 Overtime ...... 15 Leave (annual leave, parental leave etc) ...... 15 Annual leave...... 15 Maternity Leave ...... 16 Sick Leave ...... 17 Other Leave...... 17 Living Conditions ...... 18 Summary of living conditions in Europe ...... 18 Quality of life – at the top of the EU social policy agenda ...... 18 Employment in Europe ...... 18 Health and health care in the European Union ...... 18 Education and training in the EU...... 18 The Schengen area ...... 18 Transport in the EU ...... 19 Air transport and passenger rights ...... 19 Rail passenger rights ...... 19 Transport ...... 19 Public Transport ...... 19 The political, administrative and legal systems ...... 20 Incomes and taxation ...... 21 Income Tax ...... 21 Income and cost of living ...... 22 Cost of living ...... 22 Accommodation ...... 23 Health Systems ...... 24 Primary Health Care ...... 25 Secondary and Tertiary Care ...... 25 Educational systems ...... 25 Cultural and social life ...... 26 Private life (marriage, death) ...... 26 Marriage ...... 27 Death ...... 27

Short overview of the labour market

Labour Situation – July - September 2014 (Q3)

During the third quarter of 2014, the number of employed persons over 15 years of age stood at 184 355 or 51.6 % of the population over 15 years of age, while 11 440 persons, or 3.2 % of the same group, were unemployed (not working) and 161 663 persons, or 45.2 % of the cited population, were inactive.

The activity rate — which includes both persons in work and those unemployed — was estimated at 67.5 % of the working-age population during the third quarter of 2014. A comparison between the third quarter of 2014 and the third quarter of 2013 reveals a 2.9 % increase amongst women and an 0.6 % increase amongst men. The highest rate of activity was 80.0 %, for the 25-54 age group.

The Employed Population

36.4 % of the women in employment worked in the public administration, defence, education, human health and social welfare sectors, 26.3 % worked in the retail and wholesale sector, repair of motor vehicles and household appliances, hotels and restaurants, and transport, while 9.1% worked in the professional, science and technology and administration sector and the social services.

The largest group of men in employment — 30.8 % — was engaged in the wholesale and retail trades, repair of motor vehicles and household appliances, hotels and restaurants, and transport, followed by 20.8 % in the public administration, defence, education, human health and social work sector.

In general, the largest employment category for both men and women covers the wholesale and retail sector, repair of motor vehicles and household appliances, hotels and restaurants, and transport, accounting for 40 097 persons or 21.8 %. This category includes drivers, salespersons and waiters. 21 238 women, or 29.6 % of that group, and 18 859 men, or 16.7 % of that group, were employed in these occupations.

Between July and September 2014, the majority of employed persons — 151 322, or 82.1 % — were working on a full-time basis. On the other hand, 6 640 persons, or 3.6 %, were working on a full-time basis with reduced hours, and 26 393 persons, or 14.3 %, were working on a part-time basis. The number of self-employed stood at almost 14 % of the total working population.

The gross annual salary of employed persons was estimated at €16 082 per annum. This amount corresponds to the basic salary, excluding extra payments such as overtime, bonuses and allowances. The highest average gross annual salary for employees by sector was recorded in the financial sector, while the highest average salary by main occupation was recorded among managerial administrators.

The Unemployed Population

Between July and September 2014, the rate of unemployment was estimated at 5.8 %. The unemployment rate for men was 6.0 %, while that for women had risen to 5.5 %. The highest number of unemployed persons was among young people between the ages of 15 and 24. Source: Labour Force Survey July-September Q3/2014, Issue No 004/2015

Where are the available jobs?

According to the PES (Public Employment Service) administrative vacancies database, between July and September 2014 the 20 most requested jobs/trades were the following:

Page 1 Occupation Percentage of total vacancies Clerks 10.3 % Teachers 6.97 % Sales staff 6.24 % Cleaners 5.79 % Waiters and waitresses 4.80 % Managers 3.84 % Quality inspectors 3.66 % Machine operators 3.55 % Institutional care workers 3.49 % 'Database and network professionals not elsewhere classified' 3.44 % Security Officers 3.31 % Chefs and cooks 3.17 % Assembly workers 2.60 % Drivers 2.49 % Van drivers (delivery persons) 2.44 % Builders and related jobs 2.38 % Technicians 1.91 % Tradespeople and manual labourers 1.87 % Auditors 1.40 % Computer professionals 1.02 %

Where are the available workers?

At the end of September 2014, the job seekers registered with the Employment and Training Corporation were mainly looking for jobs in the services category, at 16.56 %, followed by clerical jobs (15.90 %). The men registered with the ETC were mostly seeking jobs in the related trades (17.58 %), while 14.95 % were looking for work in the service and retail sectors. The women registered as unemployed, on the other hand, were mainly seeking jobs in the technical and professional sectors (25.17 %) and clerical work (23.56 %) .

Page 2 Finding a job

How to find a job

Persons looking for work should first register with Malta's Public Employment Services in the Employment and Training Corporation (ETC), in the Access Complex at 72 Melita Street, Valletta. Persons residing in Gozo should register at the ETC Main Office in Gozo. The Corporation also hosts the EURES services. Alternatively they can access job opportunities through ETC’s Internet homepage or the local EURES homepage. This site contains an online database of vacancies, which can be searched by industry, occupation and region. There is also a CV Search facility which employers can use to search for job seekers.

Job vacancies are also advertised in trade magazines and local newspapers. A number of private employment agencies are also available, and a list of vacancies can be downloaded from the "Links" section of the ETC website.

How to apply for a job

All job applications should have a covering letter accompanied by the curriculum vitae (CV),copies of certificates and references where applicable. Applications for jobs can be either typewritten or handwritten.

Application letters are usually concise and no longer than one page of A4. The letter is a vital tool to give the employer information about career ambitions, educational background, professional experience and availability. Express interest in the vacancy and use the cover letter to convince the potential interviewer that you are qualified to fill the vacancy.

The curriculum vitae is usually up to two pages long. The standard European Curriculum Vitae format is recommended. This can be downloaded from http://europass.cedefop.europa.eu . Simplicity, conciseness and precision are recommended. The CV should include the following: personal details, education, knowledge of languages, computer skills, specific areas of competence, career information and hobbies.

Some employers provide their own application forms to be filled in by applicants. Certain forms are standard, while others ask more about previous work experience and use more unstructured (open) questions. After reviewing the CV, the employer might opt either to shortlist the candidates or to invite the applicants to an interview. In some cases, a medical examination might be required prior to employment. A medical certificate is issued by a recognised medical professional to declare whether a candidate meets the standard required and whether or not he or she is fit for the job in question.

Page 3 Moving to another country

Movement of goods and capital

The free movement of goods through the European Single Market is one of the EU’s great success stories.

How does the single market work?

Most goods are subject to what is known as the ‘principle of mutual recognition’, which means that products legally manufactured in one Member State can be freely moved and sold in all the other EU countries.

Some trading restrictions remain in certain sensitive sectors, such as construction and pharmaceuticals. In addition, Member States can limit the free movement of goods to their domestic markets under certain circumstances relating to issues like protection of the environment or public health.

EU citizens are generally free to buy goods in other Member States for their personal use. In most circumstances there is no limit to what a person can buy and take with them when they travel into different EU countries. No more tax is payable when crossing between Member States because value added tax (VAT) and excise are included in the purchase price, meaning that other countries cannot levy extra duties.

However, there are some limitations for specific products, such as alcohol and tobacco. The Commission’s Taxation and Customs Union website provides a handy run-down of the rules for buying these goods in another EU Member State. Special rules also apply when buying a motor vehicle from one Member State and taking it to another for personal use.

Free movement of capital

Thanks to EU legislation, people are free to manage and invest their money in any Member State.

It is not just the financial markets that benefit from the free movement of money through increased efficiencies, every European citizen has something to gain.

With few restrictions, each individual is free to open a back account, buy shares, make investments and purchase property in other EU countries. What is more, EU businesses can invest in, own and manage other European companies.

Some exceptions to the free movement of capital apply within the Member States, mainly related to taxation, financial supervision, public policy considerations, money laundering and financial penalties.

Finding accommodation

Properties for sale and for rent are advertised in local newspapers and by estate agents, and on their respective websites. Property availability, property prices and rents in Malta can vary from one locality to another.

Rental of property

The rental market has seen an increase in both supply and demand in recent years and is expected to continue to grow. The availability of rented property varies from one locality to another and tends to be greater in the traditional tourist areas.

Landlords advertise rental properties in the local press. Houses or apartments can be rented through the various estate agents in Malta and Gozo. A rental agreement is normally drawn up by both parties in writing. Rent is typically paid one month in advance and the owner may ask for an advance payment of up to three month’s rent as a guarantee.

Page 4 Purchase of property

Due to the limited number of residences and the limited availability of land for construction, EU citizens are not entitled to buy more than one property unless they have resided in Malta for at least five years. This means that EU citizens seeking to buy a second house in Malta will need to apply for authorisation. No prior authorisation is required and there is no limit on property bought in Special Designated Areas. The Capital Transfer Duty Department in the Inland Revenue Division, part of the Ministry of Finance, is in charge of administering the Acquisition of Immovable Property by Non-Residents.

Persons who are not citizens of a European Union Member State may not acquire property without a permit granted in accordance with the Laws of Malta.

Non-nationals may only buy property of a certain value. Currently, the minimum is set at €101 551 for the purchase of a flat or maisonette and €169 205 for the purchase of any other type of property. The Acquisition of Immovable Property Section in the Department undertakes to issue the requested permit within 35 days provided that the application submitted is correct.

The costs involved in the purchase of real estate include:

• Stamp duty (tax on documents): 5% of the value of the property, payable in two stages: 1% on the signing of the preliminary agreement, which must now be registered with the Inland Revenue to be valid, and 4% on the publication of the final deed of sale. • Legal costs: 1% (approximately) of the purchase price, payable in two stages: 33% on the signing of the preliminary agreement and 67% on the publication of the final deed of sale. • €583 (estimated) for land registry searches into title, charges on the property, etc. • €232.94 for the Acquisition of Immovable Property (AIP), a Government permit which any non-national intending to acquire property in Malta must obtain. • If you found your property through a Registered Estate Agency, the brokerage fees are paid by the seller only; if the property was found through a private agent (broker), you will have to pay a 1% brokerage fee to the private agent.

The sale of property is advertised in local papers and through various estate agents, and on their respective web sites.

Finding schools

Parents can opt to send their children to State, faith-based or private schools. Primary and secondary State schools are found in all the main regions of Malta. Demand for faith-based and private schools is high. Entry into faith-based schools is by ballot, and requires early booking, sometimes a few months or years in advance.

The educational system is split into three main sectors: primary education, which extends from ages five to eleven, secondary education from ages eleven to sixteen, and tertiary education. Education is compulsory from ages five to sixteen.

Taking a car with you (includes information on driving licences)

The EU’s desire to make it as easy as possible for its citizens to travel across Member States has led to the introduction of common rules governing the mutual recognition of driving licences, the validity of car insurance and vehicle registration. Cooperation in this field also involves the EEA countries Norway, Iceland and Lichtenstein.

Driving licences

There is no common EU/EEA driving licence. Instead, Member States provide a ‘Community Model’ driving licence, which ensures that licences issued in different EU/EEA countries can be easily recognised.

Page 5 These licences are still issued in accordance with national law but they are valid for driving in other EU countries, plus Iceland, Liechtenstein and Norway. It should be noted however that provisional licences or certificates issued in a holder’s home country will not be recognised in other Member States.

If an EU/EEA citizen goes to live in another Member State they can drive there with their current licence as long as it remains valid. (However, holders will need to check that they meet any requirements regarding licences in their new country, such as shorter validity periods or medical checks.) When the existing licence expires, or if it is lost or stolen, the holder must apply for a new one in their current country of residence.

Registering a car

If an EU/EEA citizen goes to live in another EU/EEA Member State, for less than six months, they do not have to register their car or pay taxes there. The vehicle remains registered in the previous country of residence.

But if the owner stays for longer than six months they must register their car in the new country of residence and pay the host country’s registration tax. When registering, the owner will also have to submit the following documents: certificate of conformity; insurance cover; proof of ownership; proof of VAT payment; proof of roadworthiness; evidence of registration and road tax payments.

In some countries owners may be eligible for a tax exemption on their vehicle registration when they move from another EU/EEA country, providing they meet the relevant conditions and deadlines. Before moving country, they should contact the relevant national authorities (see link).

Car insurance when moving in the EU/EEA

EU and EEA citizens can insure their car in another EU/EEA Member State through an insurance company that either has a base in the host country or that is licensed to sell insurance there.

It is important to check with the insurer whether the current contract will be valid in the country which the car is being moving to. Those people who have to get new insurance in another EU/EEA country should note that insurance companies are not obliged to take account of any previous ‘no claims’ records.

Tax issues when buying a car

If a person wants to buy a car in one EU/EEA country but intends to register it another they should only pay VAT in the country of destination. The Commission’s Taxation and Customs Union website provides more information on this subject.

Registration procedures and residence permits

All EU nationals have the right to live in Malta through the ‘right of residence’. This right is held whether the individual is working in Malta, or not working but has sufficient financial support without relying on public funds. EU nationals do not require a visa to enter Malta. On arrival in Malta, the passport or the national identity card is checked for validity by the Immigration Office.

The Residence Permit The Immigration Act (Chapter 217 of the Laws of Malta) is the legal instrument that regulates the inward movement of foreigners to Malta.

Malta hosts a number of expatriate residents. Nationals from practically every European and Mediterranean country may remain in Malta for a period of three months from their date of entry under the 'no employment' condition. The permit is endorsed on their passport upon arrival in Malta.

EU nationals will automatically be allowed to remain indefinitely if they can demonstrate self-sufficiency. If a person wishes to stay in Malta for longer than three months, he or she is required to apply for an extension of stay to the Department of Citizenship and ExpatriateAffairs. Normally, such requests are granted provided that the person concerned can show that he or she is self-sufficient (amongst other conditions). Non-nationals have to follow this procedure every time they wish to extend their permit if they wish to continue residing in Malta.

Page 6

Checklist for before and after you arrive in a country

Before arriving

• Make arrangements for (temporary) accommodation. • Ensure you have sufficient funds for the first months of your stay. • Contact the EURES office in Malta through its website ( www.eures.com.mt ) or visit the Employment and Training Corporation’s website (www.etc.gov.mt) in order to find a job. • Keep the following documents to hand: o Valid passport or other valid travel document. (If you have young children accompanying you, ensure that they are on your passport). o Motor-vehicle documents (such as the driving licence). o Certificates, diplomas, confirmation of past employment, references (originals and translations if necessary). o Curriculum vitae. o Children’s qualifications and declarations of school attendance. o European Health Insurance Card or other proof of health insurance. o Form U1 or U2. o Pet passports for any pets. o Other personal documents (such as birth and marriage certificates).

• If you use a mobile phone, make sure you have arranged the international calls (roaming)service.

After arriving

• Register with the Department of Citizenship and Expatriate Affairs (www.foreign.gov.mt). • Open a bank account. • Register for a National Insurance Number once you have found employment (www.socialpolicy.gov.mt).

Page 7 Working conditions

Overview of Working Conditions in Europe

The EU is committed to improving working conditions across Europe. It works closely with national governments to ensure that people can work in a pleasant and secure environment. EU support to Member States is provided through:

• the exchange of experience and development of common actions; and • the establishment of minimum requirements in relation to working conditions and health and safety.

Improving the quality of working life

To improve the well-being and security of the European worker, it is important to determine what makes a favourable work-place environment and to lay down criteria for quality working conditions.

The European Foundation for the Improvement of Living and Working Conditions (Eurofound) is an EU agency based in Dublin which provides information, advice and expertise in this area.

The agency has established several criteria for employment and job quality, which include:

• health and well-being in the workplace – good working conditions help to prevent health problems, decrease the risk of accidents and improve efficiency; • reconciling working and non-working life – EU citizens should be given the chance to find a work-life balance; • skills development – a quality job is one that provides opportunities for training, improvement and career advancement.

Social Dialogue

The EU works closely with social partners – including business organisations and trade unions – on a range of issues that relate to employment and working practices. Social Dialogue brings the two sides of industry together to make agreements which can have a significant impact on the European worker. Some cross-industry Social Dialogue agreements have even made it into EU law, covering changes to conditions that relate to parental leave, part-time working and fixed-term contracts.

Sometimes the social partners strike what are known as autonomous agreements, examples here cover teleworking, stress at work, and harassment and violence in the workplace. Social Dialogue also takes place in different industrial sectors, where committees have been created in areas like banking, chemicals, insurance, telecoms and steel.

For more information see the Commission’s Social Dialogue webpage. Organisations involved in cross-industry Social Dialogue include: The European Trade Union Confederation and Businesseurope.

Health and safety at work

Under EU rules, employers have a duty to ensure the health and safety of their employees. This means an employer must develop health and safety policies that include risk assessments, job-related health and safety training, worker consultation, and the provision of first-aid, fire and evacuation procedures. For their part, workers are expected to follow health and safety instructions and report any possible dangers.

More information on the principles behind the EU’s health and safety framework and how they affect the individual and businesses is available on the Commission’s website.

Page 8

The European Agency for Health and Safety at Work provides lots of useful information on this issue, for both businesses and workers.

Setting minimum requirements

Improving working conditions in the Member States depends largely on the establishment of common labour standards. EU labour laws and regulations have set the minimum requirements for a sustainable working environment and are now applied in all Member States.

EU rules that relate to working conditions cover a wide range of issues including working-time, the employment of temporary workers, the rights of part-time workers and protection for those on fixed-term contracts.

The objective of legislation in these areas is always to ensure high levels of employment while up-holding citizens’ rights in the workplace. For example, an EU directive ensures that the employment conditions of part-time workers are comparable to their full-time colleagues. Meanwhile, employers are forbidden to treat those on fixed-term contract less favourably than permanent workers.

Ending employment

Employment may be terminated if the employer has sound reasons for ending an employment relationship. The reasons may concern the individual employee or may be collective, pertaining to financial or operational difficulties. These include a reduction in the workload for economic reasons or production-related causes. A company buyout does not entitle the employer to make redundancies. Employment can be terminated due to serious misdemeanours. The employer must give the employee advance notice of the end of the employment. Unless otherwise agreed, this period of notice depends on how long the employment has lasted.

The employee may terminate employment at any time: unless otherwise agreed the period of notice is from one week to twelve weeks, depending on the duration of the employment.

Notice periods in Malta are as follows:

More than 1 month but not more than 6 months - 1 week More than 6 months but not more than 2 years - 2 weeks More than 2 years but not more than 4 years - 4 weeks More than 4 years but not more than 7 years - 8 weeks More than 7 years - an additional 1 week for every subsequent year of service up to a maximum of 12 weeks

Longer periods may be agreed to by the employer and employee in the case of technical, administrative, executive or managerial posts.

The notice period starts on the working day following the day on which notice was given.

Employees who feel that they have been unfairly dismissed or who claim that they have suffered from discrimination should consult the Department of Industrial and Employment Relations, the workplace trade union and/or seek legal advice to refer their case to the Industrial Tribunal.

Employees have the right to ask for a reference letter when the employment ends: the reference will indicate the length of employment and the type of work performed.

Representation of workers

All employees, whether office staff, labourers or trainees, have the option to be represented at work by a workers’ union. The responsibilities, privileges and obligations of the unions are regulated in the Employment and Industrial Relations Act. Employees who face problems at their workplace can approach the union relevant to their industry to request help. There is a separate representative organisation for the protection of special issues such as disability and gender equality.

A trade union and an employers’ association shall, for all legal purposes, be treated as an association of persons and not as a body corporate. They must, however, have the capacity to conclude contracts, among other things. The two general trade unions in Malta are the General Workers’ Union and the Union Ħaddiema Magħqudin. A list of all

Page 9 registered trade unions and employees’ associations may be obtained from the Registrar of Trade Unions, 120, Melita Street, Valletta, Malta.

Labour disputes - strikes

The Employment and Industrial Relations Act, 2002, is the main law regulating work relations in Malta. The Act deals with individual conditions of employment and collective industrial relations. The Act also specifies mechanisms for the voluntary and compulsory resolution of industrial conflict.

The law on labour disputes is administered through an Employment Relations Board: this has a consultative role, advising the government on a wide range of issues concerning labour legislation and the establishment of the national minimum conditions of employment.

The Employment and Industrial Relations Act provides for the voluntary settlement of disputes through mediation and conciliation and for settlements to be determined by the Industrial Tribunal. A conciliation panel, made up of no fewer than five persons, is involved in the process. An agreement has been reached in over two-thirds of all cases.

When agreement is not reached through the conciliation panel, the case is referred to the Industrial Tribunal. The Tribunal is a judicial organisation, established under the Employment Act, and has authority over conflicts in employment and industrial relations. The Tribunal’s rulings are binding and may not be appealed for a stipulated minimum period of twelve months.

Strikes

Employment legislation specifically recognises that strikes and lockouts are permitted as an expression of the right of free association. However, strikes in certain sectors can be forbidden by law. Strikes and lockouts are permissible when they concern labour relations and when there are no impeding obligations, such as the obligation to maintain peaceful labour relations. Employers are not obliged to pay wages for the duration of strikes.

Vocational training

Vocational education and training (VET) encompasses practical activities and courses relating to a specific occupation or vocation, which aim to prepare people for their future careers. For many, vocational training is an essential pathway to gain professional recognition or to improve their chances of getting a good job.

EU initiatives to promote vocational training

To promote a collaborative approach to developing vocational training systems in Europe, the EU makes use of a variety of instruments and initiatives, many of which run under its Lifelong Learning Programme .

Lifelong learning is a process that involves all forms of education and lasts from the pre-school period until after retirement. It is meant to enable people to develop and maintain key competencies throughout their life as well as to empower citizens to move freely between jobs, regions and countries.

Funding is available for a range of activities including exchanges, study visits and networking actions. Projects are many and varied, aimed at both students and their trainers and teachers.

The key sub-programmes include:

• Erasmus . Regarded as the EU’s flagship education and training programme, Erasmus enables about 200 000 students to study and work abroad each year. It also funds cooperation between Europe’s higher education institutions. • Leonardo da Vinci . As well as helping individuals attain new skills, this programme helps organisations from the VET sector to work with partners from across the EU so they can exchange best practice. The Leonardo de Vinci programme funds an array of practical VET projects from those that allow people to train abroad through to large-scale initiatives that encourage cooperation and networking throughout Europe. • Grundtvig. This provides support for the teaching and study needs of people who take adult education courses. The programme embraces formal, non-formal and informal learning.

Page 10 EU organisations that support vocational education

The EU has set up a couple of agencies to improve cooperation and exchange of practice:

The European Centre for Vocational Training (CEDEFOP) was created in 1975 to promote and development of vocational education and training in Europe. Based in Thessaloniki, Greece, it carries out research and analysis on vocational training and disseminates its expertise to various European partners, such as research institutions, universities and training facilities.

The European Training Foundation was established in 1995 and works in close collaboration with CEDEFOP. Its mission is to support partner countries from outside the EU so they can modernise and develop their vocational training systems.

Recognition of diplomas and qualifications

Obtaining recognition of qualifications and competences can play a vital role in a person’s decision to take up work in another EU country. Unfortunately different education and training systems often make it difficult for employers and institutions to properly assess qualifications.

Recognising professional qualifications

As a basic principle, EU citizens should be able to practise their profession in any other Member State. In reality, differing national requirements block access to certain professions in the host country.

To address these differences, the EU has established a system to recognise professional qualifications. Within this system, a distinction is made between regulated professions (professions for which certain qualifications are legally required) and professions that are not legally regulated in a host Member State.

The European Commission has established a set of instruments to ensure greater transparency and recognition of qualifications, both for academic and professional purposes:

• The European Qualifications Framework (EQF). The main objective of the framework is to create links between different national qualification systems in order to make it easier to recognise diplomas. Individuals and employers will be able to use the EQF to better understand and compare qualifications attained in different countries. Countries will be able to relate their qualification systems to the EQF – and from 2012 all new qualifications can carry a reference to an EQF level. • The National Academic Recognition Information Centres (NARICs) . A network of National Academic Recognition Information Centres was established in 1984 at the initiative of the European Commission. The NARICs provide advice on the academic recognition of periods of study abroad. Located in all EU Member States as well as in the countries of the European Economic Area, NARICs play a vital role the process of recognising qualifications. • The European Credit Transfer System (ECTS) . This system aims to make it easier to recognise periods of study abroad. It allows for the transfer of learning between different educational institutions and offers a flexible way to gain a degree. • Europass. Europass is an instrument for ensuring the transparency of professional skills. It is composed of five standardised documents: a CV (Curriculum Vitae); a language passport; certificate supplements; diploma supplements; and a Europass-Mobility document. The Europass system makes skills and qualifications clearly and easily understood in different parts of Europe. National Europass centres have been established in every country of the EU and the European Economic Area. • The Commission’s Database on regulated professions includes a searchable list of regulated professions in the EU Member States, EEA countries and Switzerland, plus contact points and information about competent authorities.

Kinds of employment

Page 11 A young worker is a person who has reached 16 years of age and is under 18 years of age. Only people over the age of 16 can enter employment. The most common employment contracts are full-time contracts for an indefinite term, sometimes called permanent contracts. However, fixed-term, temporary employment contracts are becoming more and more common in Malta. The latest trends in the employment market show that fixed-term contracts are becoming more common both in higher managerial grades and among skilled labourers, for project work.

It is possible for an employer to offer several fixed term contracts in succession. The full adoption of European directives implies that after a certain number of years (no more than four years, in accordance with Maltese law) the temporary employment contract has to be converted into a fixed employment contract, resulting in the the employee being engaged on a permanent basis.

A trial period can be agreed upon at the beginning of the employment relationship. The trial period is of six months, and can be increased to one year for high-profile jobs. The parties can agree on a shorter period. During the first month of the trial period either party can cancel the employment contract without notice. Subsequently, one week’s notice has to be given during the trial period.

In Malta the trend of hiring temporary staff from specialised employment agencies is on the increase. These services are used in low skills areas, but are also popular in the professional sector. Employment agencies are allowed to charge the employer expenses to cover tax, national insurance, indemnity and labour costs.

For part-time employees on a variable time schedule, the weekly number of hours of work shall be the weekly average number of hours of work spread over successive thirteen-week periods, commencing on 1 January of each calendar year.

Employment contracts

Employment in Malta always involves an employment contract, whether tacit or implicit, whereby the employee agrees to perform specified work for an employer in return for agreed wages. A written statement showing the conditions of employment must be given to the employee no later than eight days after recruitment.

Employment may be for a fixed term or for an indefinite term, and on a full-time or part-time basis. Whichever type of employment you are engaged in, check the terms and conditions of employment carefully so that you understand your rights and obligations. The employer must supply a copy of the contract of employment in English and/or Maltese.

The frequency of payments is every four weeks according to law. The salary is likely to be paid by cheque or directly into a bank account.

A trial period, usuallycalled the probation period, is typically agreed upon at the start of employment. The length of the trial period is normally six months unless both parties agree on a shorter probation period, or a longer period for high- profile or managerial jobs.

During the probation period, the employment may be terminated at will by either party without having to provide any reason, subject to one week's notice of termination being given to the other party if the employee has been working for the same employer continuously for more than one month.

If employment is terminated on grounds of lack of work (redundancy), the employee will be entitled to re-employment if the post formerly occupied becomes available again within a period of one year from the date of termination of employment.

When an employer intends to terminate employment on the grounds of lack of work (redundancy), he or she shall terminate the employment on a "last in, first out" basis.

Temporary and fixed-term employment contracts expire when the specified period ends without notice of termination being given.

Any employee whose fixed-term contract of service has expired and who is kept on by his employer shall be assumed to have been retained on an indefinite-term contract if the said employee is not given a new contract of service within the first twelve working days following expiry of the previous contract. The most common employment contracts are full-time contracts for an indefinite term, sometimes referred to as permanent contracts. However fixed term, temporary employment contracts are becoming more and more common in Malta. Latest trends in the

Page 12 employment market show that fixed-term contracts are becoming more common both in higher managerial grades and among skilled labourers, for project work.

It is possible for an employer to offer several fixed term contracts in succession. In the absence of an objective justification, a fixed term employment contract automatically becomes an indefinite-term employment contract after four years in continuous employment on one or more fixed term contracts, and in that case the employee would be engaged on a permanent basis.

In Malta the trend to hire temporary staff from specialised agencies is on the increase. These services are used in low skills areas, but are less popular in the professional sector. No fees are to be charged for applications for employment and no arrangement may be made for deducting any fees from earnings due to them.

For part-time employees on a variable time schedule, the weekly number of hours of work shall be the weekly average number of hours of work spread over successive thirteen-week periods commencing on 1 January of each calendar year.

Amendments to employment contracts

During the period of employment, supplementary terms – such as instructions regarding working time, employees’ conduct, bonus, and internal rules, among other conditions – may be added to the employment contract.

Updates and additions to contracts of employment vary from company to company. Some organisations do not provide for revisions: alternatively, these may be directly covered by a non-exclusive clause in the employment contract that grants the employer full flexibility.

In the government sector, the law requires a schedule of revisions of regulations. The updates contain provisions on health protection, accident prevention, staff conduct and compliance within the organisation.

If, after the commencement of employment, the details or the conditions of employment listed in Regulations 4 or 5 of Legal Notice 431 of 2002 are amended or modified, the employer is required to notify the employee of the changes by means of a signed statement to be delivered to the employee no later than eight working days from the date when the changes come into effect.

The employer shall not be required to notify the employee in accordance with Subregulation (1) of Legal Notice 431 of 2002, if the amendment or modification of the conditions of employment is the result of a change in laws, regulations or a collective agreement regulating the place of work.

Maltese employment law states that any employee whose fixed-term contract of service has expired and who is kept on by his employer shall be assumed to have been retained on an indefinite-term contract if the said employee is not given a new contract of service within the first twelve working days following the expiry of the previous contract.

Special categories Young Workers

Young workers benefit from maximum time limits that are lower than those for older workers. They must not work more than 8 hours a day and 40 hours a week (where the average weekly maximum for older workers is 48 hours).

Any time spent by a young person on training — whether working in a combination of theoretical and/or practical work, on a training scheme or in an on-site work experience scheme — counts as working time.

Where a young person is employed by more than one employer, working days and working times are cumulative and must not exceed the working days and working times established by the regulations.

It is the duty of the employer to ascertain whether a young person is working for another employer and to establish his/her working time in any other employment.

If a young person has more than one job, he or she is responsible for informing the employer of the hours of work carried out for any other employer.

Page 13 An employer may not permit a young person to carry out any form of work on any day on which that young person has done any form of work for any other employer, unless the aggregated time spent working for more than one employer on that day does not exceed the total time for which the young person in question may lawfully work for one employer on that day according to the regulations.

No young person may work between 10pm on any one day and 6am of the following day.

Workers with a disability The rights of workers with a disability are protected by the Equal Opportunities (Persons with Disability) Act of 2000. The Act prohibits employers from discriminating against workers with a disability.

An independent organisation, the National Commission for Persons with Disability, works to eliminate discrimination against people with disabilities. It provides advice, information and support to people with disabilities and their families.

Self-employment

Starting an activity on a self-employed basis in Malta is straightforward and involves the following steps:

• Register with the Employment and Training Corporation by sending the recruitment forms for both the employer and the employees. These forms can be obtained from the ETC offices or downloaded from the ETC website. • Register with the Inland Revenue Department as self-employed through its customer office or through its website. • Register with the Value Added Tax Department in person or through its website. • Apply to the Commerce Department for a Trade Licence. If the business involves import or export, an Import or Export licence is also required.

Apart from these, one might also need to contact one of the local banks, which have branches in almost every locality around Malta and Gozo. Two other entities which might be useful are the Malta Environment and Planning Authority (MEPA) and Malta Enterprise.

MEPA issues planning and development permits of all kinds. These can range from “change of use” permits for existing premises to completely new permits for new sites. These permits take into account various factors, ranging from parking facilities to environmental issues.

Malta Enterprise is the government agency that focuses on attracting inward investment and supporting undertakings in Malta. It provides prospective self-employed persons with guidance in response to all their queries.

Remuneration

All employees receive annual pay increases linked to the cost of living. Employees earning minimum wage are also entitled to additional bonuses. Hourly, daily wages and part rates are paid at least twice a month. Salaries are paid at least once every four weeks.

Malta’s national (weekly) minimum wage for 2015 is:

Persons aged 18 and over €166.26 Persons aged 17 €159.48 Persons aged 16 €156.64

It is worth noting that although a minimum wage is stipulated, many wages are paid above this rate.

Page 14 The minimum employment remuneration for various sectors is governed by the Government Wage Councils or through collective agreements specific to the various industries. These legally binding agreements are applied in the same way to both Maltese and foreign workers. Collective agreements sometimes guarantee special conditions and privileges in certain industries. Extra wages are paid for work on national holidays, Sunday work and overtime, except for workers in higher wage grades, usually those in managerial posts.

Employees can also receive additional reimbursement in the form of a company vehicle, lodging, communications expenses and health insurance. High-end benefits such as company cars are considered as taxable income and are thus assigned a taxable value by the tax authorities.

Working time

The working week is 40 hours in Maltese companies and organisations.

According to Maltese law, the maximum weekly working time across all employment sectors is 48 hours (i.e. 40 hours working time and 8 hours overtime), including overtime, which must be paid extra. No employer can oblige a worker to work more than an average of 48 hours a week unless he has first obtained the worker’s written agreement to this. Actual working hours vary by sector and are governed by collective agreements and by the Government Wage Councils, specific to each industry.

Organisation of working time

The organisation of working time is a prerogative of the employing organisation within the limits of the relevant statutory requirements (rest periods, breaks, annual leave, and night-time working).

According to Subsidiary Legislation 452.87 on the Organisation of Working Time, passed in April 2004, the following rules apply to all sectors:

• Every worker is entitled to a minimum daily rest period of eleven consecutive hours per 24-hour period during which the worker performs work for the employer. • Every worker is entitled to a rest break where the working day is longer than six hours. • Every worker is entitled to a minimum uninterrupted weekly rest period of twenty-four hours, in addition to the daily rest period of eleven hours, for each seven-day period during which the worker performs work for the employer. • Every worker is entitled to paid annual leave of at least the equivalent in hours of four weeks and four working days, calculated on the basis of a forty-hour working week and an eight hour working day: out of this paid annual leave entitlement, a minimum period equivalent to four weeks may not be replaced by an allowance in lieu. • A night worker’s normal hours of work should not exceed an average of eight hours in any twenty-four hour period. The employer must ensure that no night worker whose work involves special hazards or heavy physical or mental strain is allowed to work more than eight hours over any 24-hour period during which night work is performed.

Overtime

Overtime, defined as working hours over and above the normal working time, must not exceed the maximum working time laid down by employment law, namely an average of 48 hours per week, unless the employee voluntarily provides written consent to work for longer periods.

Leave (annual leave, parental leave etc) Annual leave

Employees in full-time employment on a 40 hour week are entitled to 192 hours of vacation leave per year. Vacation leave can be taken as agreed with the employer.

Page 15 National and Public Holidays amount to another 14 working days. The following is the list of yearly national and public holidays:

1 January New Year's Day 10 February Feast of St. Paul's Shipwreck in Malta 19 March Feast of St. Joseph 31 March Freedom Day – National Day < Date Varies > Good Friday 01 May Workers’ Day 7 June Sette Giugno – National Holiday 29 June Feast of St. Peter and St. Paul (a.k.a. L-Imnarja) 15 August The Assumption of St. Mary 08 September Victory Day – National Holiday 21 September Independence Day – National Holiday 08 December Feast of the Immaculate Conception 13 December Republic Day – National Holiday 25 December Christmas Day

No extra days in lieu are given for those National or Public Holidays falling on a Saturday or a Sunday.

Workers whose principal employment is on a part-time basis shall be entitled pro rata to:

• The minimum entitlement of all public holidays and annual vacation leave, sick leave, birth leave, bereavement leave, marriage leave and injury leave applicable pursuant to the recognised conditions of employment and to any such other leave established by virtue of the Act. • Any entitlement to statutory bonuses and other income supplements to which comparable full-time employees on similar duties with the same employer are entitled pursuant to the recognised conditions of employment applicable to them.

Maternity Leave

An employee may apply for maternity leave for an uninterrupted period of fourteen weeks: since 2013, this period has been extended to eighteen weeks. She must notify the employer at least four weeks before the maternity leave begins, insofar as is reasonably practicable.

Maternity leave can be taken as follows:

• six weeks of the maternity leave entitlement to be taken compulsorily immediately after the date of confinement; • four weeks of maternity leave to be taken immediately before the expected date of confinement, unless agreed otherwise between the employer and the employee; • the remaining leave entitlement to be taken, in whole or in part, either immediately before or immediately after the above periods, at the employee's choosing.

If she is unable to take the maternity leave to which she is entitled before the date of confinement, the balance of entitlement may be used after confinement.

An employee on maternity leave is entitled to 14 weeks maternity leave with full wages payable by her employer.

Parental Leave Male and female workers both have the individual right to be granted a period of four months' unpaid parental leave on the grounds of birth, fostering, adoption or legal custody of a child to enable them to care for that child: such leave may be taken until the child has reached the age of eight. In the event that the parental leave is not taken, or if there is still an existing balance of parental leave, an employee remains entitled to such leave even if he or she changes employer or employment.

Page 16 Employees in the private sector may take up to four months unpaid parental leave. Public servants, on the other hand, may take up to one year's unpaid parental leave per child, and a once-only period of five years' unpaid leave. The parental leave can also be shared by both parents.

Sick Leave

Employees must notify the employer as soon as possible when they fall ill. A doctor’s certificate is required.

Employees are entitled to wages during illness according to Maltese law or applicable collective agreements. When the sick leave entitlement is exhausted the employer is no longer obliged to pay wages. The employee is entitled to sickness benefits from the Social Security Department.

Other Leave

Employers are required by law to grant every employee a minimum total of fifteen hours with pay per year as time off from work for urgent family matters. The total number of hours used by the employee for urgent family reasons shall be deducted from the annual leave entitlement of the employee.

The employer has the right to establish the maximum number of hours of time off from work in each particular case, with the proviso that the minimum time should not be less than one hour per case unless the employee specifically agrees to this. The employer has the right to demand such evidence as may be necessary to verify and confirm the request for urgent leave by the employee. Part-time employees shall be entitled to pro-rata urgent leave entitlement.

Page 17 Living Conditions

Summary of living conditions in Europe Quality of life – at the top of the EU social policy agenda

Favourable living conditions depend on a wide range of factors, such as quality healthcare services, education and training opportunities and good transport facilities, to name just La few issues that directly affect a citizen’s everyday life and work. The EU aims to improve the quality of life in all its Member States, and to take into account the many challenges faced by contemporary Europe, such as social exclusion and the aging population.

Employment in Europe

Improving employment opportunities in Europe is a key priority for the EU. The European Employment Strategy has been developed by the EU and its Member States to create more and better jobs, tackle unemployment and increase mobility. The strategy provides a framework where European countries can coordinate their employment policies and share information.

And of course, improving the employment prospects of every European is central to the EU’s ten year strategy for economic growth, Europe 2020. A key target is to ensure that 75% of European citizens aged 20-64 are in work by the end of the decade.

Health and health care in the European Union

Good health and the availability of high-quality health care services are important priorities for all Europeans. And most people expect quick and easy access to medical treatment when travelling across the EU.

The EU’s health policies are aimed at responding to these needs. The European Commission has developed a coordinated approach to health policy, putting into practice a series of initiatives that complement the actions of national public authorities. The Union’s common actions and objectives are included in EU health programmes and strategies.

The current EU Public Health Programme runs from 2008 to 2013 and has three key objectives:

• Improving citizens health security; • Promoting health and reducing health inequalities; and • Generating and disseminating health information and knowledge.

Education and training in the EU

Member States are in charge of their own education and training systems. However, the EU adds value by coordinating activities that can help meet common goals and that can provide citizens with greater opportunities for training and study throughout their lives.

To make this happen, the EU cooperates with national authorities and education stakeholders to improve policies and exchange good practice. In addition, the EU runs a number of funding programmes in the field of education and training.

The Schengen area

The Schengen area was established in March 1995. It abolished border controls within the area of the signatory States and created a single external frontier, where checks have to be carried out in accordance with a common set of rules.

As of 2012, 25 European countries have signed up to the Schengen Agreement. Twenty-two of these are EU Member States: Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain and Sweden. Iceland, Norway and Switzerland are also in Schengen. The United Kingdom and Ireland are not part of the Schengen area.

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Transport in the EU

The EU’s transport policy is focused on removing obstacles between Member States, thereby enabling people and goods to move quickly and cheaply across borders. The goal is to provide clean, safe and efficient travel across Europe while strengthening the internal market for the free movement of people and goods. The EU is also a champion of passenger rights:

Air transport and passenger rights

The creation of a single European market in air transport has meant lower fares and a wider choice of carriers and services for passengers. The EU has also created a set of rights to ensure air passengers are treated fairly.

If things go wrong with flights that depart from an EU country or arrive in an EU country with a carrier registered in the EU (or in Iceland, Norway or Switzerland) passengers have a set of EU rights and may be entitled to reimbursement or compensation.

If you are denied boarding, face excessive delays (more than 5 hours) or your flight is cancelled or overbooked, you have the right to choose between being rerouted to your final destination or having your ticket reimbursed. If you request reimbursement of your ticket, you give up the right to any further onward travel, assistance or re-routing from the airline company.

Your airline should always inform you about your rights and the reason for any denied boarding, cancellation, or long delay (more than 2 hours). You may also be entitled to refreshments, meals, communications (such as a free phone call), and an overnight stay, depending on the flight distance and the length of delay.

In addition, if you are denied boarding, your flight is cancelled or arrives at its destination more than 3 hours late, you may be entitled to compensation of €250 - 600, depending on the distance of the flight.

Rail passenger rights

If your train is cancelled or delayed, you may be entitled to compensation. And you have the right to adequate information about the delay.

If a delay of at least 1 hour (from the schedule marked on the ticket) is announced, you can do one of the following:

• cancel your travel plans and request immediate reimbursement of the full cost of your ticket (or of the part of the journey not made). You may also claim reimbursement for the part of the journey you have already made, if the delay implies that you can no longer fulfil the purpose of your trip. • ask your carrier to be rerouted to your final destination at the earliest opportunity, or at a later date of your choice. • continue your journey, despite the delay, along the planned travel route.

If you decide to continue your journey, you are entitled to compensation. If the train is between 1 and 2 hours late, you are entitled to 25% of the ticket fare. If the train is delayed by more than 2 hours, you are entitled to 50% of the fare. The compensation has to be paid within one month after you submit a request.

Transport Public Transport

In Malta all traffic drives on the left, as in the UK. Car ownership in Malta is extremely high relative to the very small size of the islands. The number of registered vehicles stood at 329 053 in 2014.

Malta has 3 096 kilometres of road, 2 710 km (87.5%) of which are paved and 386 km of which are unpaved.

Page 19 Public transport in Malta and Gozo is provided by buses. Regular bus services run from approximately 06:00 to 23:00, with a night service on certain routes. Route buses cover most parts of both islands. All buses are accessible to people with mobility impairments, including wheelchair users. Most of these buses are also equipped with air- conditioning.

An adult two-hour ticket costs EUR 1.30, while a one-day pass costs EUR 1.50. An adult 30-day pass for residents costs EUR 26, and a 90-day pass is EUR 72. FromJune 2014 a new card payment system will be introduced and people will be encouraged to use it rather than buying a ticket when boarding the bus. The price difference will be greater for persons who buy tickets on board the bus, to encourage the use of pre-paid cards.

A trip for one person using a pre-paid card will cost 75c while the same trip for a person buying a ticket on board the bus will cost €1.50 and €2 in summer.

For more details about the different ticket prices please visit the website www.publictransport.com.mt.

Note that there are no trams, trains or underground services in Malta and Gozo. Another type of public transport available is the taxi service. This is offered privately by different providers, but is rather expensive and is mostly used by tourists visiting Malta for a short period.

Transport between Malta and Gozo

Transport between the two islands is mostly by ferry. A ferry service is operated by a State-owned company, Gozo Channel Co. Ltd. The service, which has been in operation since 1979, is very regular, comfortable and efficient. The journey takes between 20 and 30 minutes depending on the weather.

Gozo Channel operates three modern vessels, all fitted out to the highest international safety standards. These are all fully accessible to persons with disabilities. The vessels are designed to provide a comfortable journey to all passengers, and have a sun-deck, a cafeteria, a bookshop, lounge area and air-conditioning. According to the company’s website the company performs an average of 20 000 trips a year, and ferries around 4.1 million passengers and 1.2 million vehicles annually between the two islands.

The standard fare for one adult passenger is €4.65, while children pay €1.15. The fare for Gozo residents is heavily subsidised by the Government to €1.15. Senior citizens (aged 60 and over) travel for free. The standard fare for a car and driver is €15.70, while for a resident of Gozo plus car the fare is €8.15.

More information about fares and timetables can be found on the company’s website www.gozochannel.com .

The ferry service operates every day and follows a strict schedule. On very rare occasions, when the weather is very bad, the service may be disrupted.

The political, administrative and legal systems

Malta is a democratic sovereign independent republic. In 1964 Malta gained independence from Great Britain but remained a monarchy with the British Monarch as the Head of State. In 1974 Malta became a Republic with a President as Head of State. The British military base in Malta finally closed down on 31 March 1979. The Constitution of Malta (1974) sets forth the powers of the President of Malta, who is the Head of State. However, the President acts on the advice of the Prime Minister in many circumstances. The President selects a person as Prime Minister who “is best able to command the support of the majority of the members of the House (of Representatives)”. The Prime Minister exercises executive powers.

The Constitution defines the function and powers of the Parliament of Malta, including the power to legislate. The Parliament is composed of the President and the House of Representatives, which has 65 members, although this number may vary according to the Constitutional provisions on the allocation of seats after a general election. The House of Representatives is elected for a maximum term of five years. The Prime Minister may decide to advise the President to dissolve Parliament and call an early general election. Maltese citizens aged 18 years and over have the right to vote. The main political parties in Malta are the Partit Laburista (Labour Party, PL) and the Partit Nazzjonalista (Nationalist Party, PN). Both parties are represented in Parliament. Another minor party is Alternattiva Demokratika (the Green Party, AD), but it has not yet had a candidate elected to Parliament.

Page 20

The Constitution also establishes the structures and powers of the Court and lists the fundamental human rights and freedoms of individuals.

The influence of Roman law and of the Napoleonic Codes is easily identifiable in the Maltese judicial system, particularly civil law. In addition, English Common Law has had its fair share of influence on certain areas of criminal law and procedure since the early part of the last century. For instance, Maltese criminal law has always adhered to the principle of the presumption of innocence, not guilt, in favour of the accused. Another similarity between the two legal systems is that the presiding Judge sits with a jury unless the accused requests otherwise. Other areas in Civil Law include public law and in particular the law relating to merchant shipping.

The Maltese Judicial System is basically a two-tier system with a Court of First Instance presided by a judge or magistrate, and a Court of Appeal, consisting of three judges when the appeal comes from a Court presided by a judge, or a single judge when the appeal comes from a Court presided over by a magistrate. There are also a range of Tribunals for specialised areas, with varying degrees of competence. Almost all provide for appeals to a Court on points of law.

In 1964, when Malta became independent, the Constitutional Court was established as the appellate Court in matters relating to the Constitution.

In 1987 Malta adopted the European Convention on Human Rights as part of its law. Since then, Maltese citizens have had the right of access to the European Court of Human Rights in Strasbourg. This Court is composed of judges from the Member States of the Council of Europe, including Malta.

Judges and magistrates are appointed by the President of Malta and are constitutionally independent of the executive.

A person must have practised as a lawyer in Malta for a period of not less than seven years to qualify for appointment as a magistrate, and twelve years to qualify for appointment as a judge. Judges and magistrates enjoy security of tenure and they can only be removed by the President, following a motion of the House of Representatives supported by the votes of not less than two-thirds of all its members, on the ground of proven inability to perform the functions of their office or proven misconduct.

The separation of powers in Malta is not as strict as the American or French pattern but is more a system of checks and balances, as is the case in Britain. Consequently, the Courts are independent of the executive in the discharge of their duties.

Incomes and taxation

The standard Value Added Tax rate applicable to the purchase of most goods and services is 18%. Every three months, taxable persons registered for VAT and providing Intra-Community Supplies from Malta are required to send the VAT Department in Malta a Recapitulative Statement showing the breakdown of all the exempt supplies made in the course of the previous calendar quarter. This statement should include the VAT numbers of the customers from the other Member States and the total value of the Intra-Community Supplies made to each one. There is a penalty per month for failure to submit this Recapitulative Statement in time.

The data obtained from the Recapitulative Statements in each of the EU Member States, including Malta, will be entered in the VAT Information Exchange System (VIES) by all the Member States for control purposes.

Taxable persons are considered as those who carry on an economic activity, whatever the purpose or the result of that activity. Exempt persons such as medical doctors or insurance companies, and persons operating below the established threshold for small undertakings, are also considered as taxable persons even though they are not obliged to charge and collect VAT.

Income Tax

The rates of tax for an individual are 0% - 35%. The taxation of an individual's income increases with progressive income brackets. The higher the income, the higher the tax rate. Corporate tax is fixed at 35%. There are reduced rates or complete exemptions for companies with low earnings.

Page 21 Residents pay tax on income whether they are wage earners or self-employed. A person who meets the criteria to be considered a permanent resident — usually one who is resident for more than 183 days a year — will be taxed on his income in Malta and overseas. A foreign resident who is employed in Malta pays tax only on the income he earns in Malta.

The law stipulates that an employer is obliged to deduct at source, each month, the amount of tax payable on a wage. Certain deductions from the taxable income of an individual are allowable for tax purposes. Maltese residents can opt for a withholding tax of 15% on bank deposits and on interests from bonds and stocks. A dividend paid by a Maltese registered company to its shareholders confers a tax credit on its shareholders that is the equivalent of the tax paid by the company on the profits representing the source of the dividend distributed.

Income and cost of living

In Malta personal income is mainly derived from full-time or part-time employment and from self-employment in small businesses. Income can include salaries, pensions, leave allowance, unemployment benefit, educational support, etc.

Income from capital includes income from moveable and immovable property (including the rental value of owner- occupied dwellings), dividends, interest, and certain capital gains that are taxed as ordinary income.

Comparison of minimum wages per month (Eurostat 2014 S2)

Country Minimum Wage ( €) Bulgaria 174 Romania 205 Lithuania 290 Czech Republic 310 Latvia 320 Hungary 328 Slovakia 352 Estonia 355 Poland 404 Portugal 566 Greece 684 Malta 718 Spain 753 Slovenia 789 United Kingdom 1 301 France 1 445 Ireland 1 462 Netherlands 1 495 Belgium 1 502 Luxembourg (Grand Duchy) 1 921

Bonuses

The Government grants an annual cost of living wage increase for all full-time employees. Bonuses are payable to employees four times yearly as follows:

March €121.16 June €135.10 September €121.16 December €135.10

Cost of living

The cost of living in Malta has historically been lower than in most of the countries of central Europe. However, this situation is changing rapidly as the costs of housing, insurance and general products have risen considerably. Living standards in Malta are good and compare well with those of continental Europe. Life expectancy at birth and infant mortality rate are comparable to those of advanced European economies. Education, health and sanitation facilities are of a very high standard and available to all. International Living magazine’s 2011 Quality of Life Index ranks Malta

Page 22 in 2nd place behind the United States of America and ahead of EU Member States France, Belgium, Germany and Austria in the Top Ten. Indices for Malta are exceptionally high in terms of its leisure and culture, the environment, freedom, health, safety and security, and climate. Annual living costs in Malta are substantially lower than most of the developed European Countries. Safety and security are outstanding. Children can play outside in absolute safety, and all areas are safe to walk or drive around at night. And Malta’s freedom and climate rate highest of all in the survey! The following is a list of some items and their prices in Malta to give an idea of the cost of everyday living in Malta:

Restaurants Average Meal, Inexpensive Restaurant € 10.00 Meal for 2, Mid-range Restaurant, Three-course € 50 .00 Combo Meal at McDonalds or Similar € 7.50 Domestic Beer (0.5 litre draught) € 2.00 Imported Beer (0.33 litre bottle) € 2.00 Cappuccino (regular) € 1.54 Coke/Pepsi (0.33 litre bottle) € 1.31 Water (0.33 litre bottle) € 0.94

Markets Average Milk (regular), 1 litre € 0.86 Loaf of Fresh White Bread (500g) € 0.91 Eggs (12) € 1.62 Fresh Cheese (1kg) € 6.43 Chicken Breasts (Boneless, Skinless) (1kg) € 6.35 Apples (1kg) € 2.03 Oranges (1kg) € 1.68 Potato (1kg) € 0.96 Lettuce (1 head) € 1.11 . Water (1.5 litre bottle) € 0.72 Bottle of Wine (Mid-Range) € 5.00 Domestic Beer (0.5 litre bottle) € 1.29 Imported Beer (0.33 litre bottle) € 1.43 Pack of Cigarettes (Marlboro) € 4.75

Accommodation Rental Rental accommodation is mostly privately owned. Properties for rent can be found in the newspaper, on the internet or by visiting one of the estate agents in Malta. Internet search facilities are on the increase. The main property agents have a rental section on their websites. Agency fees (to be paid once only) are the equivalent of half of one month's rent plus VAT.

When you find the property you want, you will be required to sign a rental contract to protect your interests and those of the property owner. The contract establishes the conditions for the payment of the rent and the charges, the start date of the lease, the rental period, the services to be provided by the owner (such as cleaning and maintenance), the notice period required for termination of the lease and any general rules related to the common areas (where applicable). Rental contracts are usually for a minimum of six months.

In most cases, the owner will request a deposit in advance (usually about one month's rent). The rent is normally also paid in advance.

Residential Rental Costs (monthly rates excluding maintenance):

• For a three-bedroom apartment in Sliema, St. Julian's, Kappara, Swieqi: an average monthly rent of €778 .

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Purchasing

For the purchase of property you can contact estate agents or individual brokers, or consult advertisements in local newspapers and internet sites. Advertisements for houses for sale appear in all the main newspapers.

Whether you buy property from an estate agent, a broker or from the owner directly, you can try to negotiate a better price for the property.

After an agreement has been reached with the vendor on the price, the next step is the preliminary agreement, which is in fact an initial contract. Under this agreement you, as the purchaser, and the vendor are bound to complete the transfer of the property by the date specified in the preliminary agreement by finalising the sale. Upon signature of the preliminary agreement you will have to pay a deposit as agreed (normally 10% of the price of the property) and 1% as a provisional tax on the purchase of the property. The total tax amounts to 5% of the value of the property and the remaining 4% tax is paid when the final contract is signed.

In the following weeks, the notary will carry out research to confirm that the vendor has legal title to the property, and to ensure that there are no debts, liens or guarantees on the property. In the meantime, it is your task to take out a bank loan and to obtain all of the permits and forms necessary under the preliminary agreement, while the vendor prepares everything needed from his side for the contract to be drawn up.

Once this process is complete, a date is set for signature of the contract. This normally takes place before a notary or the bank's legal officer. On signing the contract you will have to pay the balance of the sale price of the property to the vendor, the remainder of the tax due to the Commissioner of Inland Revenue, and the costs of the contract and the research to the Notary Public.

Within 15 days (as specified in the legislation) from the date of the act transferring ownership of the property your notary must apply to register the property in the Land Registry.

A mortgage loan for purchasing a property may be obtained from banks, and is repayable over a period of between 15 to 40 years (depending on the circumstances of the individual). It is advisable to consult a public notary, or a lawyer, to verify the terms and conditions of sale and to draw up the purchase agreement. Persons from the EU (including Maltese nationals) who have lived outside Malta for more than five years require a permit to buy property for secondary use.

Property purchase and rental prices are rising at a rapid rate. Please check for the latest prices independently prior to visiting Malta.

Health Systems

Malta enjoys a high standard of medical care. Medical facilities, run along modern lines, are provided by the regional health centres and three general hospitals. There are specialised clinics, and a number of private hospitals are also available.

Persons receiving medical treatment and who may need to carry medicines into Malta or purchase fresh supplies are advised to carry a letter of introduction from their family doctor. Medical insurance is advisable if seeking care in private clinics and hospitals.

In Malta, the Government provides free comprehensive health services to all residents, funded by public taxes. All residents have access to preventive, investigative, curative and rehabilitative services in Government Health Centres and Hospitals. Persons on a low income are 'means tested' by the Department of Social Security. If they qualify for assistance, they receive a card which entitles them to free medication. Moreover, sufferers from one or more of the chronic diseases shown on a specified list (e.g. rheumatoid arthritis) are also entitled to receive free treatment for their ailment, irrespective of their financial means.

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The Government delivers primary health care mainly through a number of Health Centres that offer a full range of preventive, curative and rehabilitative services. General practitioners and nursing services are supplemented by various specialised services that include antenatal and postnatal clinics, Well Baby clinics, gynaecology clinics, diabetes clinics, ophthalmic clinics, psychiatric clinics, podiatry clinics, physiotherapy, and speech therapy and language pathology clinics. Community nursing and midwifery services are contracted out to the Malta Memorial District Nursing Association (MMDNA).

The Government Health Centre system works alongside a thriving private sector and many residents opt for the services of private general practitioners and specialists who work in the primary care setting.

Secondary and Tertiary Care

Secondary and tertiary care are provided by a number of public hospitals. Mater Dei is the main public hospital in Malta and is located in Msida. It offers immediate medical and surgical care, specialised services and general training to professionals in the sector and to medical students. The hospital is relatively new as it opened in 2007, replacing St Luke's public hospital. Mater Dei has 825 beds and 25 operating theatres. An oncology hospital has also opened on the grounds of the Mater Dei hospital.

Mount Carmel Hospital in Attard is a mental health hospital that offers rehabilitation services and outpatient services. The hospital has dedicated and professional staff whose multidisciplinary approach to psychiatric care means they can offer patients holistic treatments tailored to their specific needs. Both psychiatric and psychological care services are provided as well as support for reintegration in society.

St Vincent de Paul is the largest State-run old people's home in Malta. The nurses and staff of this hospital take care of the senior residents here while making every effort to improve their quality of life.

Gozo's General Hospital , located in Rabat, has 291 beds. It operates as a general hospital and has various treatment rooms where patients can be hospitalised for short periods. However, it also has a dedicated geriatric and psychiatric care section to provide long-term hospitalisation and mental health care. The hospital also offers diagnostic services to inpatients and outpatients. The facilities offered include a hyperbaric unit which is mostly used for treating patients who have been involved in diving accidents.

Gozo's General Hospital , located in Rabat, has 291 beds. It operates as a general hospital and has various treatment rooms where patients can be hospitalised for short periods. However, it also has a dedicated geriatric and psychiatric care section to provide long-term hospitalisation and mental health care. The hospital also offers diagnostic services to inpatients and outpatients. The facilities offered include a hyperbaric unit which is mostly used for diving accidents.

There are a number of private clinics and hospitals in Malta that offer a wide variety of services ranging from general practitioner services to dentistry, cosmetic surgery and other specialised professions.

Educational systems

The education system is divided into primary, secondary, post-secondary, and tertiary levels. There is also a pre- primary level and childcare services.

Childcare services are offered mostly by the private sector. The Government has a number of childcare centres around the country. Childcare services are available for children aged 0 – 3: the centres operate free of charge for parents who are working or studying . Children between the ages of 3 and 5 can attend pre-primary nurseries, which are State-run and free of charge.

Primary education is compulsory between the ages of 5 and 11 and secondary education is compulsory from the ages of 11 to 16, meaning that education in Malta is compulsory from the ages of 5 to 16. Legal action is taken against those parents or legal guardians who do not send their children to school during these years.

Post-secondary education is for students aged between 16 and 18. During this two-year period, students are equipped with the academic skills and qualifications they need before enrolling at University. In post-secondary vocational education, students learn new skills in their vocational training area before taking up actual employment or continuing their studies.

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Tertiary-level education in Malta is mostly provided by the country's only university, the University of Malta. This university was established in 1592 and is of a very high standard. The University of Malta is an international university with students coming from all over the globe. Of course, most of the students are Maltese. Undergraduate courses at the University of Malta are free of charge.

Vocational education at post-secondary and tertiary levels is mostly given at the Malta College of Arts, Science and Technology (MCAST), which also offers courses at degree level. The Institute of Tourism Studies (ITS) offers vocational training in the field of tourism.

In Malta there are also a number of private sector training service providers who act as agents for international universities abroad. It is thus possible to live in Malta and study and obtain a degree, at bachelor’s, master’s and doctoral levels, from a non-Maltese university through distance learning and/or e-learning.

State primary schools are found in practically every town and village in the Maltese islands, including in Gozo. There are State secondary schools in a number of localities. The University of Malta, MCAST, and ITS are all located in central Malta, thus making it easier for students to travel to them.

Apart from State schools, which are free of charge, there are a number of schools at primary, secondary and post- secondary level owned by the Catholic Church and by the private sector. These are fee-paying.

Cultural and social life

Malta enjoys a rich cultural and social life. During the summer, and thanks to the Mediterranean climate, al fresco living is the order of the day for the Maltese. Promenades along the seafront provide an opportunity to meet and greet: one can either stop for a chat or just take a brisk walk to get some exercise.

In Malta you can indulge in outdoor living at its best. Its compact size means you can generally try out a new sport, laze on an island cruise or tour the most important historic sites — and still have time to enjoy the nightlife.

The Maltese islands offer plenty of opportunities for those seeking to learn a new skill, discover history or improve their fitness. If you are interested in sports, we cater as much for the seasoned enthusiast as well as for the novice. Malta has fitness and spa facilities at its luxury hotels and club resorts.

The nightlife can be just as thrilling as in any other European city. In summer and winter, popular local and international DJs play for clubbers. There are cultural events, from theatre to street theatre and concerts, all year round. Cultural events in Malta include the village feast days. The feast-day season in Malta spans a series of long weekends, starting from the end of May and running throughout June, July, August and September. During this period, there is hardly a weekend when a town or a village is not celebrating the feast of its patron saint or other saints revered in different churches.

Banners, statues raised on decorated wooden columns, festoons and other adornments richly decorate the main streets of the localities where such feasts are being celebrated. The inhabitants of the town or village then add to this festive mood by decorating their own balconies and rooftops with lights and festoons, some blue and some red according to the feast in question. Flags are also hoisted as a sign of participation in the feast day celebrations.

A typical celebration of a Maltese feast lasts for a minimum of three days or longer. You may attend any evening — but be prepared to join in the merriment. Traditional as well as fast food stands vie with each other to sell their wares to the crowds. Typical products are Maltese-type nougat and other sweets. The family homes are traditionally draped in all their finery, which may be glimpsed through the open doors and windows, unless your curiosity is rewarded with an invitation from the family to come inside for a closer look!

The evenings often end with ground fireworks (Catherine wheels), a display in the night sky of fireworks exploding into colourful flower and other shapes, or a bombardment of loud petards.

Private life (marriage, death)

Page 26 Most births take place in the local State or private hospitals. Every newborn child is registered at the Public Registry and issued with a birth certificate. The hospital issues documentation to certify the place of birth. It is the parents’ responsibility to register the child. Child benefits are paid to the parents following registration.

Marriage

In Malta one can marry in a church wedding ceremony or in a civil marriage ceremony. The Marriage Registry Act regulates all marriages in Malta and the process to prepare for marriage is as follows:

Two months prior to the marriage date, the couple should make a request for the publication of marriage banns at the Public Registry. The couple should provide: a. Birth certificates b. Identity cards c. A photocopy of the identity cards of the witnesses.

The Marriage Registrar should be given the following information: a. Name of the church or place where the marriage will be held b. Date of marriage c. Name of the priest who will celebrate the marriage ceremony d. Surname which the spouse will be using after marriage (her maiden name or her husband's surname).

Ten days prior to the date of the church wedding, the couple must collect three documents prepared by the Marriage Registry and submit them to the parish priest of the place where the wedding ceremony will be held. After the wedding ceremony, the couple should sign a marriage certificate. Maltese nationals who plan to marry non-nationals should request more information from the Marriage Registry. Couples who plan to marry in Gozo should apply to the Marriage Registry in Gozo for their marriage banns. The same obligations and formalities are required for civil marriages as for religious marriages. A civil marriage may take place at the Marriage Registry or in any other public place that is accepted by the Marriage Registrar.

Death

In the event of death, the burial is organised, the will executed, the deceased's financial affairs settled and an inventory taken of his/her belongings. The burial can be organised privately by the relatives or by a funeral home. Members of all denominations may be buried in the grounds of State cemeteries.

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