HSBC Malta employees are staging a sit-in strike following a directive issued by bankers' union.

The directive, which came into effect on Monday afternoon at 12:30pm, instructed employees to log off all communication channels and system "until further notice".

The industrial action was issued over what is believed to be linked to a union demand for the compensation of employees in connection to the bank's sale to CrediaBank.

According to reports, the union is arguing employees are entitled for compensation as their employer is set to change.

The union is accusing HSBC of failing to "engage in meaningful discussions with MUBE and failed to put forward any form of proposals", leaving it with no other option by to issue directives.

It also raised "serious concerns" about whether the bank informed bidders about staffing issues.