GIBRALTAR Law and Practice Contributed by: Emma Lejeune, Stuart Dalmedo, Nicholas Isola, James Castle and Louise Anne Turnock, ISOLAS LLP
guilty in relation to the company, is deemed to be void. This does not prevent the company from indemnifying directors or officers against liability incurred in defending proceedings (whether civil or criminal) in which judgment is given in their favour or in which they are acquitted. Compa - nies may also purchase and maintain directors’ and officers’ liability insurance cover. Shareholders’ Liability Under the Companies Act, the liability of the shareholders of a company limited by shares is limited to the amount unpaid on the shares respectively held by them. Shareholders may, however, be held personally liable in certain cir - cumstances, such as where they provide a per - sonal guarantee and accept a direct contractual liability with a third party. 4. Employment Law 4.1 Nature of Applicable Regulations The legal rules governing the employment rela - tionship in Gibraltar share some similarities to the employment law of England and Wales, both in terms of legislation and common law, modified to suit the needs of the jurisdiction. The applicable legislation is contained primarily in the Employment Act 1932 and its subsidiary legislation, consisting of Orders and Regulations made under various sections of the Act, includ - ing but not limited to the: • Employment Regulations 1994; • Employment (Maternity and Parental Leave, and Health and Safety) Regulations 1996; • Employment (Annual and Public Holidays) Order 1996; • Conditions of Employment (Redundancy Pay) Order 2001;
• Fixed-Term and Part-Time Employees (Pre - vention of Less Favourable Treatment) Regu - lations 2003; • Employment (Information and Consultation of Employees) Regulations 2005; and • Conditions of Employment (Standard Mini - mum Wage) Order 2001. Other primary legislation includes, but is not lim - ited to, the Working Time Act 1999, the Equal Opportunities Act 2006 and the Employment (Bullying at Work) Act 2014, which is unique to Gibraltar with England and Wales never legislat - ing in this manner for claims of bullying. Collective bargaining agreements apply to some employers; these are most commonly negotiat - ed by trade unions. However, there are also new regulations in this area following the introduction of the Employment (Trade Union Recognition) Regulations 2023. Gibraltar employment law applies to all employ - ees working in Gibraltar, irrespective of national - ity or even residence, given the large proportion of cross-border workers commuting to Gibraltar from Spain on a daily basis. The parties to a contract may choose the gov - erning law of the contract to be that of a different country. However, such an election of govern - ance will likely be limited to contractual disputes, and Gibraltar law will continue to govern the law on the employment relationship generally. 4.2 Characteristics of Employment Contracts A contract of employment may be concluded verbally. However, there is a minimum require - ment to file a Notice of Terms of Engagement with the Department of Employment for all work - ers. In some cases, this notice may be the only
297 CHAMBERS.COM
Powered by FlippingBook