Malta closes parental leave loophole for businesses

Malta has amended the law that allowed employers to postpone granting parental leave, closing what the EU saw as a loophole.

Brussels had threatened legal action in February should Malta not remove this discrepancy, which did not reflect the EU directive on parental leave.

After analysing the changes made recently, the Commission announced that it was closing the case against Malta which it started in 2007.

Before the new amendments, the law allowed small companies employing not more than 10 people – most of Malta’s private sector – to postpone parental leave. According to the Commission, these provisions were not in line with its directive on the subject and had to be corrected.

“The size of the business is not a temporary factor which will change with time. Therefore, an employer could refuse parental leave indefinitely, thus undermining the aim of the Directive,” the Commission had said.

There was also a problem with another passage of Maltese law which allowed employers to postpone the granting of parental leave if taken within six months of the return to work following maternity leave. The Commission had argued that this exception amounted to discrimination on grounds of sex, since only women could be affected by this provision.

The EU directive provides for three months of parental leave for workers who have a child or adopt. It protects workers taking parental leave against dismissal, gives them the right to return to the same or an equivalent job and maintains their employment rights during the leave period.

The rules are now set to change again to provide added incentives to parents to take parental leave.

Last year the EU Council agreed on a new directive that will give working parents the right to at least four months leave after the birth or adoption of a child.