DIER says employees may claim compensation for outstanding annual leave that is due when employment ends. But an unused balance is not automatically payable: whether it remains due can depend on whether leave was applied for, validly carried over, or transferred in specified circumstances.
| Situation | What to know |
|---|---|
| I resign or my employer ends my job. Is unused annual leave paid? | DIER says you may claim compensation for outstanding annual leave that is due at termination. Not every unused balance is automatically payable; leave not applied for generally cannot be claimed as payment unless it remains due under applicable carry-over or transfer rules. |
| I worked part-time or for only part of the year. | Leave accrues from the start of employment. A partial year is proportionate, and entitlement is assessed in hours against normal working hours, not by assuming a full-time day count. |
| When should final wages and leave settlement be paid? | DIER says outstanding wages should be settled by the next pay date after termination. |
| I have a Single Permit and my job has ended. | Identità’s FAQ says that, for terminations from 1 August 2025, the holder has 30 days to seek alternative employment, with a possible further 30 days if financially self-sufficient. That period is not permission to work for another employer; confirm your individual residence and work position with Identità. |
What happens to unused annual leave when employment ends?
Whether you resign or your employer ends your job, DIER says you may claim financial compensation for any outstanding annual vacation leave that is due at termination. DIER lists monetary settlement of leave not availed of among termination dues. This is about annual vacation leave; the guidance cited here does not establish a general payout right for unused sick leave or every other type of leave.
There is an important limit: DIER says employees should use annual leave in the calendar year when it is due and, if leave was not applied for, they cannot claim payment for it. At termination, payment concerns a balance that is still due. Check whether any older balance was validly carried forward or automatically transferred in a qualifying circumstance before assuming it is payable.
DIER says outstanding wages should be settled by the next pay date after termination. Its guidance does not give one universal formula for converting every leave balance into euros, so ask for an itemised final calculation and check any applicable contract, collective agreement, or sector rules.
How to check a part-time or partial-year balance
Annual leave starts accumulating when employment begins. If you were employed for less than 12 months in a calendar year, entitlement is proportionate to the time employed. For part-time or reduced-hours work, calculate the entitlement in hours against normal working time rather than assuming a full-time number of days; overtime is excluded from the normal-hours calculation.
For a 40-hour week, DIER gives a standard baseline of 192 hours of paid annual leave. Normal hours that average below or above 40 per week are adjusted in hours, and the rules also allow additional equivalent hours when a national or public holiday falls on a full-time employee’s day off; part-time and reduced-hours employees receive the relevant entitlement pro rata. Your schedule and applicable collective or sector rules can affect the balance, so request the employer’s calculation and leave ledger.
Carried-over leave and leave taken in advance
Unused leave does not all carry forward automatically. Up to 50% of the annual entitlement may be carried forward once to the next calendar year by mutual agreement, and that carried-over leave must be used first. DIER also describes automatic transfer when leave could not be taken during specified maternity, sickness, or injury circumstances. If an older balance appears on your final statement, check its carry-over or transfer basis and whether it remains due.
If you requested and took more annual leave than you had earned, DIER says the excess may give rise to a civil debt in the employer’s favour when employment ends. DIER distinguishes this from forced leave imposed by the employer, which does not create that debt in the stated circumstances. Ask for the calculation and basis of any proposed recovery rather than assuming an automatic deduction is correct.
Annual leave is not the same as sick leave
The cited DIER termination guidance lists monetary settlement of leave not availed of, and its vacation-leave guidance addresses annual vacation leave. These sources do not establish a general rule that unused sick leave or every other special-leave balance must be paid out. Check the rules for your sector and any applicable contract or collective agreement before treating another type of leave as cashable.
What to check if the balance or payment seems wrong
Compare your final payslip with your leave records, timesheets, contract, and any written carry-over agreement. DIER says an itemised payslip should show annual-leave hours taken and any remaining balance. Ask the employer in writing to explain differences and provide the calculation used for the final settlement.
If the employer does not resolve an unpaid final amount, DIER says to raise the issue with the employer first and report it to the Department if payment is still not made. Keep your employment and termination documents, contract, payslips, leave records, timesheets, and proof of payment. For more on next steps after job loss, see our guide to what to do after losing a job in Malta.
If you hold a Single Permit
Annual-leave settlement and immigration status are separate issues. Identità says a Single Permit allows a third-country national to reside and work in Malta for a defined period, and does not authorise paid duties for an employer other than the one identified on the permit. The leave payout rules described above do not depend on nationality or immigration route.
Identità’s FAQ states that for employment terminations from 1 August 2025, a Single Permit holder has 30 days to seek alternative employment, with a possible further 30 days if the person proves financial self-sufficiency. That period should not be treated as permission to start work for a different employer: the permit information restricts paid work to the identified employer. Identità’s FAQ wording does not clearly explain the holder’s status throughout the grace period, so confirm your individual residence and work position directly with Identità before relying on it or starting another job.
Questions people ask
Does unused annual leave have to be paid if I resign or am dismissed?
DIER says an employee may claim compensation for outstanding annual vacation leave that is due when employment ends. But not every unused balance is automatically payable: DIER says leave not applied for generally cannot be claimed as payment. Check whether the balance was validly carried forward, transferred in a specified circumstance, or otherwise remains due.
How is leave worked out if I am part-time or worked for less than a year?
Leave accrues from the start of employment and is proportionate for a partial year. It is assessed in hours against normal working time, with overtime excluded from the normal-hours adjustment. Certain public holidays falling on a day off can also add equivalent hours to annual leave.
Does unused sick leave get paid out too?
The DIER sources cited here address settlement of annual vacation leave; they do not establish a general payout right for unused sick leave or every other leave type. Check your sector rules and any applicable contract or collective agreement.
When should I receive the money?
DIER says outstanding wages should be settled by the next pay date after termination. Ask for an itemised final calculation if the annual-leave amount is missing or unclear.
Can my employer recover leave I took before earning it?
DIER says leave requested and taken in excess of entitlement may give rise to a civil debt when employment ends, while distinguishing this from forced leave imposed by the employer. Ask for the calculation and basis of any proposed recovery.
What records should I check if I disagree with the balance?
Compare your payslips, employer leave records, timesheets, contract, carry-over agreement, final statement, and payment evidence. DIER says you can report an unpaid final amount if raising it with the employer does not resolve the issue.
Does losing my job affect my Single Permit?
Identità’s FAQ says that, for terminations from 1 August 2025, a Single Permit holder has 30 days to seek alternative employment, with a possible additional 30 days if financially self-sufficient. This is not permission to work for another employer. Confirm your specific residence and work position with Identità.
Sources
- DIER — Vacation Leave
- DIER — FAQs: Transparent and Predictable Working Conditions, page 4
- DIER — Other Rights on Termination
- DIER — Conferment of Payslip
- Organisation of Working Time Regulations, S.L. 452.87
- Identità — Expatriates, Non-EU Employment FAQ
- Identità — Non-EU Nationals: Single Permit
General information, not individual immigration or legal advice. Confirm your own status and current requirements with the relevant authority.