Latest updates

Irrevocable power of attorney as additional security
Fenech & Fenech Advocates
  • Shipping & Transport
  • Malta
  • 19 June 2019

If an event of default occurs, a power of attorney executed by the mortgagor will allow the mortgagee to apply for the immediate closure of the vessel's Maltese register on the mortgagor's behalf and to pay all fees, make all declarations and receive all certificates, including the deletion certificate. While not essential for enforcement, registration of the irrevocable power of attorney is nevertheless an option for mortgagees and provides the added benefit of allowing for swifter enforcement in cases of default.

Employers should wait for criminal court decisions before terminating employment
Fenech & Fenech Advocates
  • Employment & Benefits
  • Malta
  • 22 May 2019

Industrial Tribunal cases tend to be sensitive in nature as they essentially deal with a person's livelihood; however, when the Industrial Tribunal is faced with matters which have also been referred to the courts of criminal jurisdiction, such cases are even more complex. In particular, there are questions around how an employer should regulate itself regarding an employee's employment when it is confronted with a pending decision by the criminal court.

No warnings, no damages, no due process: one-off mistake validates employee's dismissal
Fenech & Fenech Advocates
  • Employment & Benefits
  • Malta
  • 17 April 2019

The Court of Appeal recently upheld an Industrial Tribunal decision and confirmed that a company operating in the iGaming industry had been entitled to dismiss an employee who had, on one occasion, forgotten to upload games to the company's platform. Nonetheless, this is a contentious judgment which, at face value, seems to diminish the burden that an employer must prove continuous or repetitive misconduct or underperformance substantiated by valid warnings.

How reasonable is reasonable accommodation?
Fenech & Fenech Advocates
  • Employment & Benefits
  • Malta
  • 20 February 2019

The Industrial Tribunal recently examined the concept of reasonable accommodation and what employers should do to accommodate their employees appropriately. In this case, the employee claimed that he had been discriminated against due to his heart condition and unfairly dismissed. The tribunal ruled in the employee's favour and awarded him €20,000 for unfair dismissal and another €10,000 for discrimination.

Securitisation in shipping: Maltese perspective
Fenech & Fenech Advocates
  • Shipping & Transport
  • Malta
  • 16 January 2019

Asset-backed securitisation in the shipping sphere has recently come to prominence in light of traditional financiers' reluctance to finance shipping activities. The amalgamation of Malta's securitisation framework and merchant shipping laws makes up for a sui generis alternative corporate vehicle to facilitate such transactions and provide the stability and security for which investors yearn.

The saga continues: bunker delivery notes under Maltese law
Fenech & Fenech Advocates
  • Shipping & Transport
  • Malta
  • 19 December 2018

The practice of inserting a reference to a physical supplier's applicable terms and conditions in a bunker delivery note is rife within the local bunkering community. Historically, case law on the subject has been sparse. However, a recent court judgment supports the view that bunker suppliers cannot pursue a vessel or its owners for unpaid bunkers unless that claim is privileged or the order came directly from the vessel, its owner or its agent.

Mortgage amendments – when are they required?
Fenech & Fenech Advocates
  • Shipping & Transport
  • Malta
  • 21 November 2018

A mortgage over a Malta-flagged vessel may be drawn up to secure the payment of a principal sum and interest, an account current or the performance of any other obligation – including a future obligation – due to a creditor by the debtor. The parties to an underlying security document may enter into negotiations resulting in changes to the terms set out in the security document. The question that therefore arises is whether a mortgage amendment should be registered to reflect the new terms.

Annual Leave National Standard Order: possible effects on maternity, sick and injury leave
Fenech & Fenech Advocates
  • Employment & Benefits
  • Malta
  • 07 November 2018

Four new legal notices were recently published in the Government Gazette. However, these were short lived, as just a few days later, ministry representatives reportedly declared that the legal notices would be suspended. While it is uncertain whether the Annual Leave National Standard Order will be enacted, it is worthwhile to analyse the proposed changes, as these would alter current employment law should they come into force.

Aircraft lessors' rights
Fenech & Fenech Advocates
  • Aviation
  • Malta
  • 07 November 2018

Recent amendments to the Civil Code concerning contracts of lease have bolstered the rights of lessors of aircraft such that they are now not materially different to those granted to the holders of security interests in terms of the Cape Town Convention. Aircraft leases are now akin to security interests and grant important rights and remedies to lessors and financiers. The changes better reflect the commercial realities underlying the aircraft lease relationship and should continue to improve Malta's legislative framework in this area.

Lost mortgage instruments
Fenech & Fenech Advocates
  • Shipping & Transport
  • Malta
  • 07 November 2018

The registration of a mortgage over a Malta-flagged vessel in favour of an individual, corporate lender or security trustee (the mortgagee) requires the filing of a statutory mortgage instrument (the deed) at the Maltese Ship Registry. However, what happens if the original mortgage instrument is misplaced? Maltese law affords two remedies in such instances; the chosen remedy will depend on the remaining duration of the registered security.

New (now suspended) legal notices
Fenech & Fenech Advocates
  • Employment & Benefits
  • Malta
  • 19 September 2018

Four new legal notices affecting employment laws were recently published in the Government Gazette. Whether the notices must be considered as law and enforceable before the Maltese tribunals and courts is now the subject of debate. However, it is clear that the government intends to introduce some piecemeal changes that will affect employers significantly, including new rules on payslips that all employers – irrespective of size – must issue and new limitations on holiday leave arrangements.

Temporary Agency Workers Regulations: changes on the horizon?
Fenech & Fenech Advocates
  • Employment & Benefits
  • Malta
  • 19 September 2018

If enacted, a recently published legal notice will introduce amendments to the Temporary Agency Workers Regulations, including expanding the concept of assigned temporary workers, redefining 'pay' and removing the equal pay rule exception. This article summarises the proposed amendments to the regulations and raises some pertinent questions.

Judicial sale by auction of Indian Empress
Fenech & Fenech Advocates
  • Shipping & Transport
  • Malta
  • 05 September 2018

The June 2018 sale of the Indian Empress has attracted the attention of the superyacht community worldwide and international brokers, the international yachting media and potential owners and creditors of the yacht are watching this space very closely. This was the first time that a Maltese court ordered bidders in a judicial sale by auction of vessels to make a cash deposit in court prior to the sale taking place and the first time that a bidder was held liable for the payment of the difference.

Protection of third-party owners of installed engines
Fenech & Fenech Advocates
  • Aviation
  • Malta
  • 08 August 2018

While the rights of third-party owners of installed engines were recognised prior to amendments introduced in 2016, the protection of those rights was subject to serious procedural limitations which came to light in several related cases. Following the decisions in these cases, the law was amended so that it is now provided that the court seized with the acts of a warrant of arrest of an aircraft will also be competent to hear an application by the owner of an installed engine which does not belong to the aircraft owner.

Is a bunker delivery note a binding contract under Maltese law?
Fenech & Fenech Advocates
  • Shipping & Transport
  • Malta
  • 20 June 2018

Following the collapse of OW Bunkers, physical bunker suppliers worldwide have had to rethink their business model with respect to the potential debt exposures that they face when conducting business through bunker traders. The matter is further complicated due to the fact that in many cases, there is not just one bunker trader involved, but rather a series of intermediaries, brokers and intermediary traders.

Legislative changes: tax deduction for transportation costs
Fenech & Fenech Advocates
  • Employment & Benefits
  • Malta
  • 23 May 2018

Maltese income tax legislation provides specific rules for determining the types of expense that are deductible against income. Legal Notice 67 of 2018 on tax deductions for employee transportation costs provides for a new tax deduction. The new rules will apply to transportation costs incurred for the transport of employees from assessment year 2018 and will remain in effect until assessment year 2020.

Legislative changes: ship sale contracts and charterparties
Fenech & Fenech Advocates
  • Shipping & Transport
  • Malta
  • 22 November 2017

While primarily introduced to amend and update the Aircraft Registration Act and other ancillary-related laws, Act LII/2016 also promulgated particular amendments which go beyond aviation law into the realm of shipping. These recent changes are making Maltese law an ideal legal regime to govern and regulate disputes which may arise under certain types of shipping contract – namely, ship sale and purchase agreements, promise of sale agreements and charterparties.

New guidelines on private yachts carriage capacity
Fenech & Fenech Advocates
  • Shipping & Transport
  • Malta
  • 12 April 2017

At the start of 2017 Transport Malta, the authority responsible for the administration of the Malta flag, introduced new guidelines that allow more than 12 persons on board privately registered yachts. The new guidelines stem both from a recognition that there is a gap in the superyacht market and the administration's continued effort to remain at the forefront as a leading yachting flag.

Court lifts physical bunker supplier's arrest of vessel
Fenech & Fenech Advocates
  • Shipping & Transport
  • Malta
  • 22 March 2017

Following the issuance of a provisional arrest warrant at the request of a physical bunker supplier, the Maltese court determined that it was not vested with jurisdiction in rem and accordingly lifted the arrest. This judgment sheds important light on the onus of proof with which an arresting creditor is burdened. The court held that it was insufficient merely to procure evidence of knowledge of the supply or proof of acceptance of the product from the supplier.

'Maritime Malta' – legal perspective
Fenech & Fenech Advocates
  • Shipping & Transport
  • Malta
  • 30 November 2016

The term 'Maritime Malta' perfectly describes Malta – a country which has always had close connections with the sea and maritime sector. In addition to its strategic position, Malta has a stable and reliable legal regime and laws which give investors and their financiers a high degree of confidence. These achievements are a direct result of careful planning, a strong workforce that is prepared to deliver value for money and a 'can do' attitude.