Employment 2024

Last Updated September 05, 2024

Gibraltar

Law and Practice

Authors



Ellul & Cruz is a full-service Gibraltar law firm founded in 1973. It was born of the merger of Ellul & Co and Cruzlaw in 2024. Ellul & Co was founded by Eric C Ellul in 1973 and Cruzlaw was founded by Nick Cruz in 1996. Led by Marc X Ellul and Nick Cruz, Ellul & Cruz has a broad local practice that includes advice and representation in all employment-related matters. The firm draws clients from a diverse range of industry and service sectors and is instructed in both contentious and non-contentious matters. As advocates, Ellul & Cruz lawyers represent both employers and employees in employment tribunals and through to the court of appeal. The firm’s work includes advising on contracts of employment (and drawing them up), company handbooks, discipline and grievance procedures, and unfair, wrongful and constructive dismissal, as well as advising on discrimination, employee rights and bullying. Ellul & Cruz is the Gibraltar member of the Employment Law Alliance, an international network of employment lawyers.

Self-employed individuals do not have the same rights as employees under Gibraltar law. Self-employed individuals are also responsible for their own tax and social insurance payments, which are normally handled by the employer in respect of the employees.

Employment contracts may be for an indefinite period or for a fixed term. The Fixed Term and Part-Time Employees (Prevention of Less Favourable Treatment) Regulations 2003 aim to prevent fixed-term and/or part-time employees being treated less favourably than similar permanent and full-time employees and limit the use of successive fixed-term contracts.

In order to engage an employee, an employer must be registered as such under the Business Trades and Professions Registration Act 1989 and must also register with the Income Tax Office. In addition, a Notification of Vacancy form must be completed, and all vacancies must be registered with the Department of Employment before seeking to engage a person as a worker.

A Notice of Terms of Engagement must also be completed and submitted to the Department of Employment for all workers. This notice must set out certain terms of the employee’s employment, including wages and notice periods. A copy must be given to the employee. Any changes to the employment relationship must be notified to the Department of Employment on a prescribed form.

The Working Time Act 1999 (WTA) provides specific rules governing the working hours, breaks, and holidays of workers. A person is considered a worker for the purposes of the WTA if such a person is engaged under a contract of employment or provides work or services under a contract that is not a contract for professional services.

There is a 48-hour limit on average weekly working hours, including overtime. The average number of hours worked are calculated by reference to a 17-week period. There are some special case exemptions that allow for a 26-week reference period and possibly a reference period of a full year where a collective or workforce agreement provides for this. It is possible for individuals to opt out of the 48-hour limit, but such agreements are terminable at no more than three months’ notice and increase the employer’s record-keeping burden. This category is open to wide interpretation and employment contracts frequently include provisions for working hours above the 48-hour limit for professionals and managerial staff. The 48-hour limitation does not apply to those whose working time cannot be measured or predetermined.

Night-Time Work

The normal working hours of a night worker must not exceed an average of eight in each 24-hour period. In the case of a night worker whose activities involve special hazards or heavy, physical or mental strain, there is an absolute limit of eight hours. Night-time means the period between 11pm and 6am. The precise period can be determined in a relevant agreement 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 justification 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 overtime 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.

The Chief Minister, in his capacity as the Minister for Finance, announced in his budget address on 1 July 2024 that the minimum wage would rise by 3%; just above the Gibraltar government’s estimate of inflation of 2.6%. This amounts to a rise of 30 pence to GBP8.90 per hour, which – based upon a 37.5 hour week – amounts to GBP333.75 per week. On this same basis, this comes to an annual salary of GBP17,355, which is equivalent to a minimum monthly wage of GBP1,446.25.

All employees in any undertaking, or any branch or department of an undertaking, are entitled to a minimum 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 academic 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 registered 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 discretionary, they are likely to be subject to implied duties and should be operated in a way that does not discriminate or breach the Equal Opportunities Act 2006.

Annual Holiday Entitlements

The Employment (Annual and Public Holidays) Order 1969 (EAPHO) provides specific rules on the duration of an employee’s annual holidays and the related payment.

According to Section 4 of the EAPHO, between January 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 continuous 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.

Application of annual holiday entitlements

The initial minimum paid annual holiday entitlement is 15 days for employees working at least five days a week, increasing gradually to 25 days for employees who have attained eight years of service. There is no statutory unpaid holiday entitlement.

Employees are entitled to take annual holidays on consecutive days. Any rest days or public holidays that fall during the annual holiday period do not count as days of annual holiday.

An employer is required to give employees a reasonable notice of the commencement date(s) of their annual holiday periods. This notice may be given individually or by the posting of a notice in the place where the employees are employed.

End of employment holiday pay

Where an employee ceases to be employed by an employer, the employer is required to – on termination of the employment – pay to the employee one day’s holiday pay in respect of each day of accrued annual holiday to which the employee would have been entitled, minus any days of annual holiday already taken. However, holiday pay is not payable to an employee where:

  • the employee is dismissed on the grounds of either dishonesty or misconduct and is so informed by their employer at the time of dismissal; or
  • the employee leaves the employment without giving the employer notice of termination of employment in accordance with Section 54(2) of the Employment Act 1932.

Where an employee dies while in the employment of an employer, the amount of any accrued holiday pay to which the employee would have been entitled had a notice to terminate the employment been given to the employer – expiring on the date of their death – is due and payable to the legal personal representative of the employee by the employer.

Nonetheless, the above-mentioned provisions of the EAPHO do not prevent any employer allowing annual or public holiday conditions or the payment of holiday remuneration on terms more favourable than those prescribed.

Sick Leave, Illness and Incapacity

Under the Employment (Sick Pay) Order of 1974, within any period of 12 months (calculated from the first day of an employee being absent from work owing to illness), sick leave is payable as follows: full pay for two weeks and, thereafter, half pay for four weeks. Therefore, after an employee has taken six weeks of sick leave within said 12-month period, they are not entitled to receive any further payments from an employer for any subsequent days of sick leave taken.

Time Off for Urgent Family Reasons

Pursuant to Regulation 29 of the Employment (Maternity and Parental Leave, And Health And Safety) Regulations 1997 (EMPHS), employees may take five days a year unpaid leave for emergency family reasons such as sickness or accident affecting a member of their immediate family that makes the employee’s presence indispensable. “Immediate family” means a child under the age 18, a parent or spouse buy also includes a dependant who has no other means of support or assistance.

Maternity Leave

The law governing maternity leave is set out in Regulations 1 to 18 of the EMPHS. It allows for a period of 14 weeks’ unpaid maternity leave, provided that the employee has worked with an employer for at least two years (calculated up to the start of 11 weeks before the expected week of childbirth).

Parental Leave

Regulation 26 of the EMPHS also entitles employees to take four months’ parental leave – limited to no more than four weeks in any one year – following the birth or adoption of their child. This can only be taken during the period up to the child’s fifth birthday or the fifth anniversary of adoption (as the case may be).

Pension Entitlement

The Private Sector Pensions Act 2019 (PSPA) was enacted in August 2021 to establish a framework for private sector pensions, ensuring that employees in Gibraltar have access to workplace pensions should they wish to do so. The PSPA makes it compulsory for all employers in Gibraltar, starting with the largest (in number of employees), to provide all eligible employees with access to a pension scheme in addition to the existing state pension. Should the employee elect to take up the pension scheme, the PSPA makes it compulsory for both the employer and employee to contribute a minimum amount each week or month (depending on the intervals at which the employee is paid) to the employee’s pension fund.

As employers must contribute to the pension scheme on behalf of the employee, this fosters shared responsibility for retirement savings between employer and employee. The employee is required to contribute a portion of their salary to their pension scheme, which may be matched or supplemented by employer contributions.

The requirements of the PSPA will come into effect at different times, depending on an employer’s size. This is calculated by the number of employees. The different employer bands and the number of employees (according to which, membership of each band is measured) – as well as when the requirements of the PSPA start to apply to each of the different-sized employers – are:

  • enterprise (251 employees or more) – 1 August 2021;
  • large (101–250 employees (inclusive)) – 1 July 2022;
  • medium (51–100 employees (inclusive)) – 1 July 2025;
  • small       (15–50 employees (inclusive)) – 1 July 2026; and
  • micro (14 employees or fewer) – 1 July 2027.

The Gibraltar Financial Services Commission is appointed as Pensions Commissioner under the PSPA to ensure that the requirements are complied with by employers and by the administrators of pension schemes.

There are no statutes pertaining to covenants not to compete in Gibraltar.

The types of covenants commonly used in employment contracts are:

  • non-solicitation covenants to prohibit a former employee from soliciting the customers or clients of the employer;
  • non-dealing covenants to prohibit a former employee from dealing with the customers or clients of the employer;
  • non-competition covenants to prohibit a former employee from engaging in a competitive activity within a particular area or a time-scale (or both); and
  • non-solicitation or non-poaching of employees covenants to prohibit a former employee from soliciting their ex-colleagues.

Covenants will only be enforceable if they are considered reasonable, taking into account factors such as:

  • the nature of an employee’s work and what information they had access to;
  • whether the “clients” and “employees” are restricted to those with whom the former employee had dealings; and
  • the size of an area restriction and its duration (this may be particularly relevant to a jurisdiction as small as Gibraltar).

If restrictive covenants are disregarded or if confidential information is misused, an employer can seek damages against an employee/ex-employee or obtain an injunction restraining them from breaching said covenants or misusing said confidential information. It may also be possible to sue the new employer for inducing a breach of contract or breach of confidence.

See 2.1 Non-competes.

Pursuant to the Gibraltar General Data Protection Regulation (GDPR), which came into force on 25 May 2018, data collected, processed, stored and accessed should be restricted to the minimum for each specified purpose and only be kept for as long as necessary. Current legislation in Gibraltar maintains the data protection standards that applied in Gibraltar as a result of EU law (ie, the EU General Data Protection Regulation 2016/679 and the EU Law Enforcement Directive 2016/680) prior to Brexit and the end of the transition period.

Individuals, including employees, have the right to be informed of how their data will be used. They can access, rectify, erase and object to data being held or processed. They also have the new right of portability – that is, the data can be transferred to another organisation on request.

Employers are not able to process data until they show that a legitimate interest or legal basis outweighs the interests or rights of the employee. Any data held on paper or electronically should be available to the individual electronically – free of charge and in a commonly used format – within one month.

Legal Basis

In the employment context, a “legal basis” is needed to justify the processing of each data category. A legal basis can be a statutory requirement, such as recording for tax purposes, necessary for a legal obligation, or for the performance of the contract (eg, paying the individual or ensuring work is performed). For much employee data, the legal basis will be a “legitimate interest” – for example, capturing data to improve workforce performance or to respond to a dispute.

The Employment Regulations 1994 (the “Employment Regulations”) provide that it is an offence to engage a worker other than an entitled worker, as defined in the Employment Regulations, without having first obtained a permit in respect of that worker. “Entitled workers” are defined in Regulation 6(4) and include:

  • European Economic Area (EEA) nationals and their family members;
  • Swiss nationals;
  • persons entitled to seek and take up employment in Gibraltar by virtue of their nationality or residency; and
  • persons falling within Section 14(1) of the Immigration, Asylum and Refugee Act, etc.

All other workers must have a work permit to work in Gibraltar. It is as yet unclear what the position of EU workers will be in the future, given that the UK and Gibraltar left the EU on 31 December 2020.

Currently, discussions between the Gibraltar, Spanish and UK governments have meant that there is an expectation that “a Gibraltar solution” will be found that will accommodate the parties’ desire for Gibraltar to enters the Schengen area and for free movement to prevail. This is currently the subject of a treaty negotiation between the EU and the UK. In the meantime, the treatment of previously “entitled workers” remains the same.

Work Permit Applications

Where applicable, a work permit must be obtained before employment commences and will only be issued for 12 months at a time. The application is made by the employer to the Director of Employment. The employer must lodge a deposit with the Director of Employment for the amount that would be required to repatriate the employee on termination.

Applications are usually processed within two to three weeks. Failure to obtain a work permit is subject to financial penalties. Non-EU nationals require residency permits if they wish to reside in Gibraltar. A person who is not entitled to reside in Gibraltar and does so without a permit will not be allowed to stay.

Applications must be made to the Civil Status and Registration Office. It takes around four weeks (or, in some cases, more) to obtain a residency permit.

As mentioned in 1.2 Employment Contracts, in order to engage an employee, the employer must be registered as such under the Business Trades and Professions Registration Act 1989 and must also register with the Income Tax Office.

Employers and employees may agree on working from home arrangements or for employees to be working while in transit, where this is appropriate for the type of business. Depending on the implementation of the arrangement, this may involve the employer issuing IT equipment or software that – once installed in an employee’s premisses or on their private devices – enables them to have the same level of access to the employer’s network, systems and resources as they would have if they were in the workplace. Employers must, however, implement appropriate technical and organisational measures to ensure compliance with data protection obligations under the Gibraltar GDPR and the Data Protection Act 2004 (DPA) in respect of the employees working remotely.

As regards the monitoring of working from home arrangements, the employer must ensure that any use of employees’ personal data complies with the data protection law and identifies a lawful basis under Article 6 of the Gibraltar GDPR and Article 9 of the Gibraltar GDPR in respect of special categories of personal data, where applicable.

There is no statutory right to request or take a career break or a sabbatical (paid or unpaid) for employees. However, such arrangements may be included in an employment contract or employee handbook as part of the employer’s employee retention strategy. A sabbatical would generally be subject to a negotiation between the employer and the employee, rather than a contractual or legal right.

Gibraltar does not currently have in place extensive regulations regarding new working arrangements such as desk sharing.

The law on trade unions is largely governed by the Trade Unions and Trade Disputes Act 1947, which was recently supplemented by the Employment (Trade Union Recognition) Regulations 2023 with regard to the recognition of trade unions by the employers.

In order for a trade union to be able to conduct effective collective bargaining on behalf of its members, it must be registered in accordance with the provisions of the Trade Unions and Trade Disputes Act 1947.

An employee has the following rights in relation to their employer:

  • the employee may not be refused employment because of membership or non-membership of a trade union; and
  • dismissal for membership of, or for taking part in the activities of, an independent trade union is deemed automatically unfair for the purposes of the Employment Act 1932.

Where an employer is proposing to dismiss as redundant five or more employees at one establishment within a period of 90 days or less, the employer is required to consult about the dismissals all persons who are the appropriate representatives of any employees who may be affected by the proposed dismissals or by measures taken in connection with those dismissals.

The appropriate representatives of any affected employees are the representatives of the trade union (if the employees are of a description in respect of which a trade union is recognised by their employer) or, in any other cases, the employees’ representatives elected by the employees in accordance with Section 76(3)(b) of the Employment Act 1932.

Collective bargaining agreements are negotiated between trade unions and the employers or employers’ associations. Collective bargaining agreements form the basis of an individual’s contract of employment, provided certain conditions are met.

Employees with at least a year of continuous service can only be dismissed for a fair reason, namely:

  • a reason related to capability;
  • a reason related to conduct;
  • redundancy;
  • the inability of employee to continue working without contravening the law; or
  • some other substantial reason of a kind to justify the dismissal.

The employer has the burden of proving the reason for dismissal.

Redundancy

Redundancy is a potentially fair reason for dismissal, if there is a genuine redundancy situation.

Section 65(7)(c) of the Employment Act 1932 provides that any reference to redundancy or to being redundant shall be construed as a reference to the fact that:

  • the employer has ceased (or intends to cease) to carry on the business for the purposes of which the employee was employed by the employer or has ceased (or intends to cease) to carry on that business; or
  • the requirements of that business for employees to carry out work of a particular kind have ceased or diminished or are expected to cease or diminish.

The definition of redundancy therefore incorporates three main situations:

  • the employer is closing down the business altogether;
  • the employer is closing down the business in the place where the employee is employed; or
  • the employer no longer needs the employee’s skills.

Note that Employee A may be dismissed as redundant even if the requirement for work that they were employed to do remains the same but Employee B’s job has diminished or ceased and Employee B takes over Employee A’s job. This is colloquially known as “bumping”.

Procedure

As mentioned in 6.2 Employee Representative Bodies, where an employer is proposing to dismiss as redundant five or more employees at one establishment within a period of 90 days or less, the employer must consult about the dismissals all the persons who are appropriate representatives of any employees who may be affected by the proposed dismissals or by measures taken in connection with those dismissals. The consultation must begin at the earliest opportunity and, in any event, at least 60 days before the first of the dismissals takes effect.

The appropriate representatives of any affected employees are representatives of the trade union (if the employees are of a description in respect of which a trade union is recognised by their employer) or, in any other case, employee representatives chosen by the employees.

The consultation must include consultation about ways of:

  • avoiding the dismissals;
  • reducing the number of employees to be dismissed; and
  • mitigating the consequences of the dismissals.

Further, the consultation must be undertaken by the employer with a view to reaching an agreement with the appropriate representatives.

In determining how many employees an employer is proposing to dismiss as redundant, no account shall be taken of employees in respect of whose proposed dismissals consultation has already begun.

For the purposes of the consultation, the employer must disclose in writing to the appropriate representatives and to the Director of Employment:

  • the reasons for their proposals;
  • the number and description of employees whom it is proposed to dismiss as redundant;
  • the total number of employees of any such description employed by the employer at the establishment in question;
  • the proposed method of selecting the employees who may be dismissed;
  • the proposed method of carrying out the dismissals, with due regard to any agreed procedure, including the period over which the dismissals are to take effect; and
  • the proposed method of calculating the amount of any redundancy payments to be made (otherwise than in compliance with an obligation imposed by, or by virtue of, any enactment) to employees who may be dismissed.

The dismissal shall be regarded as unfair if the reason or principal reason for the dismissal of an employee was that they were redundant, but it is shown that the circumstances constituting the redundancy apply equally to one or more other employees in the same undertaking who hold positions similar to that held by the dismissed employee and who have not been dismissed by the employer and that either:

  • the reason (or, if more than one, the principal reason) for which the employee was selected for dismissal was that the employee had exercised – or had indicated an intention to exercise – certain rights (specifically indicated in Section 60(2) and Section 62 of the Employment Act); or
  • the employee was selected for dismissal in contravention of a customary arrangement or agreed procedure relating to redundancy and there were no special reasons justifying a departure from that arrangement or procedure in this case.

Compensation

Subject to certain specified exceptions, if an employee who has been continuously employed for two years is dismissed by reason of redundancy, they are entitled to a redundancy payment.

Where a person’s employment is terminated by reason of redundancy, and provided that the total amount of the redundancy payment does not exceed the amount of one year of pay and that no payment will be made to an employee who has not completed one year of service,they shall be paid by their employer by way of compensation:

  • for each of the first five completed years of service, two weeks of pay;
  • for each of the next five completed years of service, three weeks of pay;
  • for each additional completed year thereafter, four weeks of pay; and
  • in respect of an employee age 41 years and over, for each completed year of service after the age of 40, two weeks of pay.

However, the foregoing shall not prevent redundancy settlements that are more favourable.

Compromise Agreements

A common way of terminating an employment relationship is to enter into a compromise contract. Effectively an employer will pay an employee an agreed sum of money in return for the employee not bringing or continuing any common law or statutory claims against the employer for any act of discrimination or harassment. For details of the conditions that must be met in order for the compromise agreement to be binding, please refer to 7.4 Termination Agreements.

Minimum statutory notice periods the employer must give vary depending on the employee’s length of service. If the employee is paid monthly, notice periods are as follows:

  • up to eight years’ service – one month;
  • between eight and ten years’ service – two months; and
  • more than ten years’ service – three months.

If the employee is paid more often than monthly, notice periods are as follows:

  • less than two years’ service – one week;
  • between two and five years’ service – two weeks;
  • between five and eight years’ service – four weeks;
  • between eight and ten years’ service – eight weeks; and
  • more than ten years’ service – 13 weeks.

Employment contracts can provide for longer notice periods and for payment in lieu of notice.

Dismissal Without Notice and Breach of Contract Claims

Employees can be dismissed without notice in cases of gross misconduct. Otherwise, failure to provide appropriate notice will give rise to a claim for wrongful dismissal. Fixed-term employees who are dismissed before the expiry of their contract are entitled to 50% of the sum that would have accrued during the unexpired period of the contract.

The employer must file a Notice of Termination with the Department of Employment within seven days of the dismissal.

To avoid breach of contract claims, the employer must comply with any contractual obligations regarding termination. A fair process must be conducted to avoid claims for unfair dismissal. Although not a statutory requirement, the Employment Tribunal will consider the process followed by the employer.

Different considerations will apply in cases where dismissal is on the grounds of capability or redundancy.

Generally speaking, an act of gross misconduct is considered to be serious enough to overturn the contract between employer and employee, thus justifying summary dismissal. It is still vital that the employer follows a fair procedure as for any disciplinary offence.

Failure to establish the facts before taking action and failure to hold a meeting with the employee, as well as denying the employee the right to appeal, are highly likely to be considered unfair at an Employment Tribunal and lead to a claim against the employer.

The conditions regulating compromise contracts in respect of complaints presented to the Employment Tribunal for harassment or discrimination are set out in Section 62(2) of the Equal Opportunities Act 2006. The conditions under Section 62(2) are that:

  • the contract must be in writing;
  • the contract must relate to the particular complaint;
  • the complainant must have received advice from a relevant independent adviser as to the terms and effect of the proposed contract and, in particular, its effect on their ability to pursue a legal complaint;
  • when the adviser gives the advice, there must be in force a contract of insurance – or an indemnity provided for members of a profession or professional body – covering the risk of a claim by the complainant in respect of loss arising as a consequence of the advice;
  • the contract must identify the adviser; and
  • the contract must state that the conditions regulating compromise contracts under Section 62(2) are satisfied.

A person is a relevant independent adviser for the purposes of Section 62(2) if:

  • they are a qualified lawyer (barrister or solicitor);
  • they are an officer, official, employee or member of a trade union who has been certified in writing by the trade union as competent to give advice and as authorised to do so on behalf of the trade union; or
  • they work at an advice centre (whether as an employee or a volunteer) and have been certified in writing by the centre as competent to give advice in relation to employment and equal opportunities law and as authorised to do so on behalf of the centre.

A person is not a relevant independent adviser in relation to the complainant if:

  • they are employed by – or is acting in the matter for – the other party or a person who is connected with the other party;
  • in the case of a person within subsection (3)(b) or (c), the trade union or advice centre is the other party or a person who is connected with the other party; or
  • in the case of a person within subsection (3)(c), the complainant makes a payment for the advice received from said person.

Any two persons are to be treated as connected if:

  • one is a company of which the other (directly or indirectly) has control; or
  • both are companies of which a third person (directly or indirectly) has control.

It is unlawful to discriminate against employees on the basis of any protected characteristic under the Equal Opportunities Act 2006. The protected characteristics are as follows:

  • gender;
  • gender reassignment;
  • marital or civil partnership status;
  • racial and ethnic origin;
  • pregnancy or maternity leave;
  • age;
  • disability;
  • sexual orientation; and
  • religious beliefs.

For details of the various forms discrimination may take, please refer to 8.2 Anti-discrimination.

Breach of a notice term, whether express or implied, and breach of a contractual disciplinary procedure are examples of grounds for a wrongful dismissal claim. The remedies available for wrongful dismissal are damages and equitable remedies (eg, a declaration). An injunction will only be granted if damages would be inadequate.

As mentioned in 7.5 Protected Categories of Employee, legislation in Gibraltar (in particular, the Equal Opportunities Act 2006) forbids discrimination in the workplace on the basis of:

  • age or age group;
  • disability;
  • pregnancy or maternity leave;
  • racial or ethnic origin;
  • religion or belief;
  • sex (including marital or family status); or
  • sexual orientation.

Discrimination may take the form of direct discrimination, indirect discrimination, harassment or victimisation. Almost all categories of workers are protected from discrimination including employees, contract workers, past employees or workers and those applying for jobs or in the process of going through recruitment procedures.

Any termination that can be shown to be due to a discriminatory reason will be unlawful.

There is no cap on awards for discrimination or harassment. A successful applicant may be awarded damages, including damages for injury to feelings.

The majority of disputes between the employees and employers are brought before the Employment Tribunal and the proceedings are typically held in person. However, the Employment Tribunal has the discretion to implement videoconferencing facilities (if deemed appropriate).

Standard forms are available on the Department of Employment website and are required to be completed and sent to the Department of Employment in the event of a termination or a change to employment status. The Employment Tribunal Claim Form (the “Claim Form”) is also available on the Department of Employment website.

An employee may take a claim to the Employment Tribunal if they think someone has treated them unlawfully – for example, their employer, a potential employer or a trade union. Unlawful treatment can include:

  • unfair dismissal;
  • discrimination; and
  • bullying at work.

Making a Claim

A claim has to be made to the Employment Tribunal within three months of employment terminating or of the act constituting the basis of the claim occurring. To make a claim, a Claim Form must be completed and submitted to the secretary of the Employment Tribunal. The Employment Tribunal secretary will send a copy of the Claim Form to the respondent and a blank Response Form for them to complete. The respondent then has an opportunity to file a response. The employee will receive a copy of the response.

Once the Employment Tribunal has accepted a Claim Form and any Response Form, it will appoint a mediator.

Arbitration is possible if included in the employment contract. Pre-dispute arbitration agreements are enforceable.

The Employment Tribunal may – on its own initiative or on application – make a costs order or a preparation time order, where it considers that:

  • a party (or that party’s representative) has acted vexatiously, abusively, disruptively or otherwise unreasonably in either the bringing of the proceedings (or part thereof) or the way that the proceedings (or part thereof) have been conducted; or
  • any claim or response has no reasonable prospect of success.

The Employment Tribunal may also make a costs order or a preparation time order where a party has been in breach of any order or any of the Employment Tribunal (Constitution and Procedure) Rules or where a hearing has been adjourned or postponed on the application of or as a result of the conduct of a party.

Ellul & Cruz

Suite 7
Hadfield House
Library Street
GX11 1AA
Gibraltar

+350 200 76552

+350 200 70921

info@ellulcruz.com www.ellulcruz.com
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Law and Practice

Authors



Ellul & Cruz is a full-service Gibraltar law firm founded in 1973. It was born of the merger of Ellul & Co and Cruzlaw in 2024. Ellul & Co was founded by Eric C Ellul in 1973 and Cruzlaw was founded by Nick Cruz in 1996. Led by Marc X Ellul and Nick Cruz, Ellul & Cruz has a broad local practice that includes advice and representation in all employment-related matters. The firm draws clients from a diverse range of industry and service sectors and is instructed in both contentious and non-contentious matters. As advocates, Ellul & Cruz lawyers represent both employers and employees in employment tribunals and through to the court of appeal. The firm’s work includes advising on contracts of employment (and drawing them up), company handbooks, discipline and grievance procedures, and unfair, wrongful and constructive dismissal, as well as advising on discrimination, employee rights and bullying. Ellul & Cruz is the Gibraltar member of the Employment Law Alliance, an international network of employment lawyers.

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