Doing Business In... 2025

GIBRALTAR Law and Practice Contributed by: Emma Lejeune, Stuart Dalmedo, Nicholas Isola, James Castle and Louise Anne Turnock, ISOLAS LLP

written part of a contract between an employer and employee and sets out basic mandatory terms of the employee’s employment, such as working hours, salary, holiday entitlement and notice periods, the minimum of which are set in statute. While the requirement to file the notice is mandatory in all cases, some employers will also provide workers with a more detailed employ - ment agreement, in addition to that notice, set - ting 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 com - mon 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 prescribed form known as the Notice of Varia - tion of Terms of Engagement. The duration of the employment contract is not regulated 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 employer 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 Sun - days), and such workers may not opt out of the stipulated maximum working time. There is no minimum working time applicable to workers 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 ordinarily required to do so. 4.4 Termination of Employment Contracts Employment contracts can be terminated by providing notice. Statute determines what the minimum notice periods are. However, employ - ers 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 con - tract of service is deemed to be probationary under statute, and the employment may be terminated at the end of such a week by either party without notice. After this period, the mini - mum 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. In the case of an employee giving notice of ter - mination, the required period is determined by reference to how often they are paid only. For

298 CHAMBERS.COM

Powered by