Executive exits in Malta
Advice for executives and senior managers leaving, or being asked to leave, a Malta-based business. What you are owed, what you can negotiate, and what you should not sign.
Situations I am asked about
- A proposal to leave, with a deadline to respond.
- A change of role, reporting line or title that feels like a step towards the door.
- An allegation of misconduct or underperformance raised late in a working relationship.
- Bonus, deferred pay, share or option awards that depend on how and when you leave.
- A non-compete or non-solicitation clause and an offer from a competitor.
- A regulated role, and the question of how the departure will be recorded.
You do not need to wait for a letter. Many of the most useful decisions are made before the first formal meeting.
Both sides. Nearly 30 years of employment practice, for employees, unions and employers.
Three ways I can help
- Exit review
A short written assessment of your entitlements, leverage and options.
- Negotiation and settlement
Terms negotiated for you, and the settlement agreement drafted or reviewed.
- Incoming executive review
Your new contract read before you sign it, with the exit in view.
Common questions, from notice to non-competes, are answered in the FAQs.
Who I act for
Chief executives and other C-suite officers, heads of department, and holders of regulated key functions such as MLRO, compliance and risk.
I focus on iGaming, financial services and technology. The substance of the advice applies in any sector.
Key function holder. A role the MGA or MFSA must approve. The regulator may need to be told when the holder leaves.
First, which roles do you hold?
A senior person often holds several positions in the same business, and each one ends in its own way. Resigning a directorship does not by itself end your employment, and ending your employment does not by itself decide what happens to your shares.
Maltese law looks at the substance of a working relationship, not only its label. Where the business exercises effective direction, control and choice over the work, the relationship is treated as a contract of service, whatever the documents call it (Cap. 452, article 2). Consultancy and director arrangements therefore need checking before anyone assumes which rules apply.
Contract of service. The legal term for an employment contract. It is the relationship, not the title, that decides whether you have one.
| Role | What usually governs it | Why it matters at exit |
|---|---|---|
| Employee | Contract of employment, side letters, staff policies, any collective agreement | Notice, payments, restrictions and the protections of the Employment and Industrial Relations Act (Cap. 452) |
| Director or company officer | Articles of association, board resolutions, any service agreement | Removal or resignation from office follows company law and the company's own rules, not the employment contract alone |
| Shareholder or option holder | Plan rules, award letters, shareholders' agreement | What you keep, sell or forfeit may depend on the reason for leaving and the date |
| Approved or key function holder | Licence conditions and the regulator's rules | The employer may need to notify the regulator, and the wording can matter for your next role |
Each role may need its own documents and, sometimes, its own adviser. I identify them at the start, so that nothing is agreed in one capacity that undoes your position in another.
How an executive exit runs
- 1.
Review
We read your contract, policies and incentive plans together, and set out what you are entitled to under the contract and the Employment and Industrial Relations Act.
Pay in lieu of notice. Payment for the notice period instead of working it.
- 2.
Strategy
We agree what you want from the exit, what you will trade for it, and how hard to push. Most of the value is decided here.
Garden leave. You stay employed and paid during notice, but stop working.
- 3.
Negotiation
I negotiate with your employer or its lawyers on notice, bonus and deferred pay, unvested shares, covenants, the announcement and the reference.
Malus and clawback. Terms that let an employer reduce or recover variable pay.
- 4.
Settlement
The settlement agreement is drafted or reviewed line by line, with tax points flagged for your adviser and any regulatory notification agreed in advance.
Key function holder. A role the MGA or MFSA must approve. The regulator may need to be told when the holder leaves.
Recent decisions on executive exits
Case notes on Maltese court and tribunal decisions that bear on senior departures.
- Case note. Industrial Tribunal.A redundancy release challenged at the preliminary stage: Portelli v Recowatt
- Case note. Court of Appeal (Superior Jurisdiction).Resignation and a diverted business opportunity: Associated Supplies v Mizzi and Typeset
- Case note. Industrial Tribunal.Serious misconduct and the disciplinary procedure: Voortman v VistaJet
- Case note. Court of Appeal (Superior Jurisdiction).Senior responsibilities and an agreed termination payment: Schembri v National Orchestra
- Case note. Court of Appeal (Inferior Jurisdiction).Reinstatement and compensation following a senior dismissal: Fenech v MFSA
- Case note. Court of Appeal (Inferior Jurisdiction).Future loss, contribution and the cost of dismissal: Camilleri v Allied Newspapers
Talk it through, in confidence
Tell me briefly where things stand. I reply within one working day.