The Maltese legal system does not provide for one comprehensive set of rules regulating internal company policies and procedures. Rather, the Employment and Industrial Relations Act (Chapter 452 of the Laws of Malta), together with the subsidiary legislation enacted thereunder and other applicable laws, establishes a framework of minimum employment rights and obligations which employers must observe.
Within that framework, employers may adopt their own policies and procedures to regulate the day-to-day employment relationship and establish the standards expected within their organisation.
Having appropriate policies and procedures in place is important both for employers and employees. They provide clarity, promote consistency and help prevent uncertainty as to what is expected from each party. Ultimately, workplace policies do more than establish rules: they help shape company culture.
- What are Company Policies and Procedures?
Company policies are internal rules or guidelines through which an employer establishes the standards, principles and conduct expected within the workplace. Procedures, on the other hand, generally establish the steps to be followed when particular circumstances arise.
A disciplinary policy, for example, may identify conduct which the employer considers unacceptable, while the corresponding disciplinary procedure may establish how an alleged breach will be investigated and addressed.
Clear policies therefore allow both employer and employee to understand not only what is expected, but also what happens when those expectations are not met.
- What are some examples of Workplace Policies?
Common examples include, but are not limited to:
- disciplinary and grievance policies;
- equal opportunities, anti-discrimination and anti-harassment policies;
- remote-working policies;
- IT, email and acceptable-use policies;
- data protection and privacy policies;
- health and safety procedures;
- policies concerning leave and absence;
- whistleblowing procedures; and
- codes of conduct.
Certain areas may already be subject to specific statutory obligations. An internal policy should therefore complement the applicable legal framework rather than simply replace it.
- Are Company Policies enforceable?
Policies are dealt with on a case-by-case basis. Policies are generally considered to be enforceable if in line with the law and to the extent that the employee knows about their existence, for example, through reference made in the employment contract and a copy being accessible to the employee.
Once an employer establishes a particular procedure, it should take care to apply that procedure fairly and consistently. This becomes particularly significant in disciplinary matters.
The approach adopted by the Industrial Tribunal in employment disputes demonstrates the practical importance of procedure. When considering whether disciplinary action, and particularly dismissal, was justified, a Tribunal may examine not only the employee’s alleged conduct but also the process followed by the employer, including the applicable internal disciplinary rules and whether the employee was afforded a proper opportunity to respond to the allegations made against him or her.
- Can a Company Policy override the law?
An employer cannot use an internal policy to circumvent mandatory rights afforded to employees under Maltese law. A policy must operate within the parameters established by the EIRA, applicable subsidiary legislation and any other relevant legislation.
Company policies should therefore be viewed as an additional layer within the employment relationship. Policies can regulate matters in greater detail and establish standards appropriate to the particular workplace, but they cannot lawfully take away minimum rights granted by law.
- Why are Policies necessary?
Policies provide a common point of reference.
For employers, they can assist management in dealing consistently with situations such as misconduct, grievances, absence, harassment or the use of company systems. This reduces the risk of similar situations being handled differently depending on the manager involved.
For employees, policies provide greater transparency. An employee should be able to understand what standards are expected, where concerns can be raised and what procedure will be followed when a problem arises.
Good policies can therefore operate both as a risk-management tool for the employer and as an important safeguard for employees.
- How can policies promote coherence within the workplace?
This can be explained through a practical example:
Consider, for example, two employees accused of substantially similar misconduct. In the absence of a disciplinary framework, different managers may respond very differently. A properly drafted policy provides a common procedure and a common set of considerations against which both situations can be assessed.
This does not mean that every case must have an identical outcome. Individual circumstances will inevitably differ. Rather, policies provide a framework through which decisions can be taken consistently, objectively and transparently.
This can be particularly important in larger organisations, where employees may report to different managers or work across different departments.
- How can policies help employees feel supported?
Policies should not be perceived solely as mechanisms through which an employer imposes rules.
A well-designed policy framework should also tell employees where they can turn when something goes wrong.
An employee experiencing harassment, for example, should know whom to approach and how a complaint will be handled. An employee wishing to raise a workplace concern should understand the applicable grievance procedure. Similarly, employees should know what protections and procedures apply when they report wrongdoing or exercise rights available to them at law.
Company Policies and Procedures cannot replace employment law, nor should they attempt to do so. The law establishes the minimum framework governing the employment relationship. Carefully drafted policies help translate that framework, together with an organisation’s own standards and values, into everyday workplace practice.
However, simply having a collection of policies is not enough. Policies should be lawful, clear, accessible, consistently applied and periodically reviewed to ensure that they remain appropriate in light of legislative developments and the evolving needs of the workplace.
Ultimately, good workplace policies do not merely tell employees what they cannot do. They establish expectations, provide procedures when difficulties arise and contribute towards a workplace in which both employer and employee understand where they stand.
For assistance on Employment law matters, particularly in drafting Company Policies and Procedures, you are welcome to contact a member of our Employment Law Department.
