GIBRALTAR Law and Practice Contributed by: Emma Lejeune, Stuart Dalmedo, Adrian Pilcher, Nicholas Isola, Danielle Victor, James Castle, Louise Anne Turnock and Danielle Curtis, ISOLAS LLP
4.4 Termination of Employment Contracts Employment contracts can be terminated by providing notice. Statute determines what the minimum notice periods are. However, employers often agree notice periods under the contract that are greater than those set out in statute. A contract may also provide for payment in lieu of the notice period or to place the employee on garden leave for part or all of that notice period. The first week of any employment under a contract of service is deemed to be probationary under stat - ute, and the employment may be terminated at the end of such a week by either party without notice. After this period, the minimum statutory notice period must be applied, which will depend on, among other things, whether notice is given by the employer or the employee, and how often the employee is paid by the employer. However, in practice, employers typi - cally include express contractual probationary peri - ods extending beyond the statutory minimum, during which performance and suitability are assessed. In the case of an employee giving notice of termi - nation, the required period is determined by refer - ence to how often they are paid only. For example, an employee must give one month’s notice to termi - nate the employment, unless the employee is paid weekly where one week’s notice is required. A fail - ure to provide appropriate notice will give rise to a claim for wrongful dismissal. However, an employer may dismiss an employee, and an employee may abandon the service of an employer, without giving notice where there is good and sufficient cause for such dismissal (eg, gross misconduct) or abandon - ment, but an employer is not entitled to set up as good and sufficient cause that (a) the employee’s lack, loss or impairment of skill, ability or efficiency makes the fulfilment of the contract of service impossible, or (b) that the employee no longer enjoys the employer’s confidence. Additionally, employees have a statutory right not to be dismissed unfairly if they have been employed for a continuous period of at least 52 weeks, ending with the effective date of termination and provided that the employee has not been dismissed for an automati -
provide workers with a more detailed employment agreement, in addition to that notice, setting out its contractual terms and conditions and incorporating any additional benefits. In addition to the rights imposed by statute, there are other terms implied into contracts by common law, including a duty to provide work and a mutual duty to maintain trust and confidence. Variations to the employment relationship must be notified to the Department of Employment on a pre - scribed form known as the Notice of Variation of Terms of Engagement. The duration of the employment contract is not regu - lated under Gibraltar law, but a worker is able to bind themselves to provide services for a fixed or indefinite term. This must be set out in the Notice of Terms of Engagement. 4.3 Working Time Under the Working Time Act 1999, a worker’s average working time, including overtime, must not exceed 48 hours each week, over a period of 17 weeks excluding any periods of sick leave, maternity leave or annual leave. However, any worker may agree with their employ - er in writing that this maximum should not apply to them, provided the employer can comply with certain requirements set out in the Working Time Act 1999. In the case of a worker between the ages of 15 and 17 (inclusive), the maximum working time shall not exceed eight hours a day, or 40 hours a week (between midnights on successive Sundays), and such workers may not opt out of the stipulated maximum working time. There is no minimum working time applicable to work - ers in Gibraltar. Accordingly, zero-hour contracts are permitted under Gibraltar law. The Employment (Annual and Public Holidays) Order 1996 sets out the rights employees have who work extra hours on public holidays when they are not ordi - narily required to do so.
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