Malta’s ‘Job insecurity capital’: Reforming definite contracts to end workers’ limbo

Imagine this: You’ve been working at the same place for years, but you’re still on a definite contract, renewed annually. No job security, no pension plan, no career progression. Welcome to Malta’s ‘job insecurity capital’, where this is the reality for thousands of workers. But change is brewing. Momentum, a local NGO, is pushing for definite contract reform to end this sustained uncertainty.

Malta’s Definite Contract Dilemma

Malta’s definite contracts, designed for temporary work, have become the norm for many permanent jobs. According to the National Statistics Office, in 2020, 42% of employees were on definite contracts. While these contracts offer flexibility to employers, they leave workers in limbo, constantly renewing their contracts, year after year.

Take 35-year-old Maria, for instance, who has been working as an admin assistant at a St. Julian’s company for five years. “Every December, I’m stressed out, wondering if my contract will be renewed,” she says. “I can’t plan my life, save for a home, or even think about starting a family.”

Momentum’s Push for Change

Momentum, a think tank focusing on social and economic issues, is calling for definite contract reform. They propose replacing definite contracts with indefinite ones after an initial probation period. “This isn’t about taking away flexibility from employers,” says Rebecca Cuschieri, Momentum’s director. “It’s about ensuring workers have the security they deserve after a reasonable period.”

Momentum’s proposal has gained traction. The Malta Chamber of Commerce supports the idea, and the Malta Union of Teachers has been advocating for it for years. Even the government has hinted at potential changes.

Reforming Definite Contracts: A Path Forward

Reforming definite contracts could boost worker morale, encourage long-term planning, and even benefit employers in the long run. A study by the University of Malta found that job insecurity can lead to lower productivity and higher turnover rates.

Malta’s demographic challenges make contract reform urgent. With an aging population and low birth rates, the country needs to retain and attract talent. Secure employment could be a key incentive.

But change won’t happen overnight. It requires political will, consultation with social partners, and careful drafting of new legislation. “We’re not asking for the moon,” says Cuschieri. “We’re asking for fairness and security for Malta’s workers.”

So, what’s next? Momentum is calling on the government to launch a public consultation on definite contract reform. They’re also encouraging workers to share their stories, building a groundswell of support for change. As Maria puts it, “I’ve been living in limbo for too long. It’s time for Malta’s workers to have a secure future.”