Employment 2025

GIBRALTAR Law and Practice Contributed by: Nick Cruz, Marc X Ellul, Arcelia María Hernández-Cordero and Kayleigh-Anne Revagliatte, Ellul & Cruz

and, in the absence of such an agreement, it will be construed as 11pm to 6am. Part-Time Work Part-time workers have the same rights/entitlements as full-time workers, unless there is an objective jus - tification for the difference in treatment. Part-time workers accrue rights over time in the same way as full-time workers. The duration of the annual holiday of part-time employees is calculated pro rata to that of an employee who works a five-day working week. Overtime If an employee is expected to work regular overtime, it is good employment practice to state this clearly in the employee’s contract of employment, together with: • whether overtime is compulsory or voluntary; • rates of overtime pay; • when overtime becomes payable; • any notice arrangements for overtime working; and • the authorisation process for overtime work. Overtime rates are a matter for agreement between employer and employee or on an industry-wide basis. There are certain minimum statutory levels and over - time pay varies from business to business. Typical rates for overtime are: • weekdays and Saturdays – one-and-a-half times the normal hourly working rate; • Sundays and public holidays – double the normal hourly working rate (Sunday shop workers may be an exception); and • Christmas Day and New Year’s Eve – double the normal hourly working rate and above. 1.4 Compensation The Chief Minister, in his capacity as the Minister for Finance, announced in his budget address on 30 June 2025 that the minimum wage would rise by from GBP8.90 to GBP9.50 per hour; a rise of just over 6%. Based upon a 37.5-hour week this amounts to GBP356.25 per week. On this same basis, this comes to an annual salary of GBP18,525, which is equivalent to a minimum monthly wage of GBP1,543.75.

All employees in any undertaking, or any branch or department of an undertaking, are entitled to a mini - mum hourly, weekly and monthly remuneration. This does not include: • employees who are engaged in a full-time course of education and who are employed during aca - demic holiday periods; • apprentices or trainees whose service ends at the end of their apprenticeship or traineeship; and • domestic servants working in private households or seafarers employed on a sea-going vessel regis - tered in Gibraltar. It is not unusual to reward employees through bonuses in some sectors, such as financial services. Although many bonus schemes are described as discretion - ary, they are likely to be subject to implied duties and should be operated in a way that does not discrimi - nate or breach the Equal Opportunities Act 2006. 1.5 Other Employment Terms Annual Holiday Entitlements The Employment (Annual and Public Holidays) Order 1969 (EAPHO) provides specific rules on the dura - tion of an employee’s annual holidays and the related payment. According to Section 4 of the EAPHO, between Janu - ary 1st and December 31st each year, an employer is required to allow a holiday to every employee who was employed for a period of four weeks or more during the 12 months immediately preceding January 1st of that year (such 12 month-period is hereinafter referred to as the “qualifying period”). The duration of an employee’s annual holiday entitlement is linked to the period of their employment, with the employer during the qualifying period, the employee’s continu - ous service and the amount of working days a week the employee is contracted to work. The duration of an employee’s annual holidays are calculated in accordance with the tables set out in Schedule 2 of the EAPHO. The duration of the annual holiday of part- time employees is calculated pro rata to the full-time employees’ entitlement.

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