Employment Law 2025 and Planning Ahead For 2026
Malta experienced a particularly active year in the field of employment law throughout 2025, with several legislative reforms coming into force and a number of important future proposals emerging.
Below is an overview of the principal developments in Maltese employment law over the past year, together with key considerations as we move into 2026 and a summary of the reforms currently progressing through the legislative pipeline.
1. Urgent Family Leave
By virtue of Legal Notice 28 of 2025, the annual hours of paid urgent family leave were increased from the original fifteen (15) hours of paid leave per year under the Urgent Family Leave Regulations S.L.452.88). The “principal” employee may now access up to thirty-two (32) hours per year for urgent family reasons on grounds of force majeure where the immediate presence of the employee is indispensable. This would include:
- accidents to members of employee’s immediate family;
- sudden illness or sickness requiring the presence of the employee and presence during births; and
- deaths of members of the employee’s immediate family.
“Immediate family” in this scenario would mean the husband, wife and married or unmarried children, as well as family relations up to the first degree, and whether living in the same household or not and persons having legal custody of a child.
It is important note that according to the law in this regard, no advance notification is required to be given by the employee. This is except in those cases where it is possible for the employee to give at least twenty-four (24) hours’ notice of an event which is to take place and which requires the absence of the employee from the place of work for such urgent family reasons.
The law also states that the first sixteen (16) hours availed of by the employee for urgent family reasons shall be deducted from their annual leave entitlement, but the remaining sixteen (16) hours will be deducted from the annual sick leave entitlement of the employee, instead of solely from the annual leave entitlement of the employee. This deduction is fixed by law so the employee cannot choose whether to deduct it from annual leave or sick leave. The employer would still be permitted to request reasonable proof such as for instance a medical certificate of the child or the proof that an accident has occurred, for approval of such leave.
This strengthened-family amendment thus requires employers to update leave records and internal guidance, handbooks or policies on such leave entitlement. It also very much favours the employee since although it dictates the minimum urgent family leave, it does not preclude employers to introduce and implement more favourable provisions, whether in collective agreements or employment agreements between the employer and employee.
2. Miscarriage leave & Parental Bereavement leave
There has also been the introduction of new protective leave entitlements designed to support employees during some of the most sensitive life events. These included the introduction of miscarriage leave, and parental bereavement leave.
Miscarriage leave, which will enter into force from the 1st of January, 2026, shall be provided to parents and prospective parents, whether married or otherwise, for when there is a spontaneous or medically anticipated loss of pregnancy due to natural reasons or medical complications, or when the pregnancy ends because of a medical procedure that is performed.
Miscarriage Leave provides seven (7) consecutive calendar days of full paid leave, to be taken immediately following the miscarriage. Both the person who experienced the miscarriage and the other expectant parent may take this leave. All employees, regardless of gender, sexual orientation, or type of contract are entitled to this leave, including part-time and probationary workers.
The parents are entitled to such leave if a pregnancy ends before the twenty second (22nd) week, whether in Malta or elsewhere. Beyond this twenty-two (22)-week period, the mother would be entitled to maternity leave instead. What is requires is for either employee to provide to their employer a medical certificate confirming the miscarriage and at what date, within two (2) working days of returning to work. The other expectant parent must also submit a signed declaration from both parents to qualify. Employers can then apply for a refund of the paid leave from the Department of Social Security within three (3) months.
Secondly, parental bereavement leave extends paid leave for parents grieving the loss of a child, under the age of eighteen (18). It consists of seven (7) working days of paid leave for the parent to be away from work during this period, a great extension from the previous one (1) or two (2) days in previous legislation, including wage regulation orders for specific sectors. The effective date of such leave still however needs to be communicated formally by the competent authority in the near future.
These changes once again require HR managers to remain up to date with relevant benefits for their employees, and for companies to revise internal leave systems and update HR manuals and policies accordingly.
3. Amendments to EIRA – Fines & Prescriptive Periods
Significant changes were additionally made to the Employment and Industrial Relations Act (EIRA; Chapter 452 of the laws of Malta). The amendments introduced a new set of higher fines for breaches of recognised employment conditions, placing much stronger pressure on employers to maintain correct contracts, records and working conditions.
- Firstly, for a first offence, the fine shall be not less than two thousand Euro (€2,000) and not exceeding five thousand Euro (€5,000).
- Secondly, a new proviso is also introduced, delineating that where an employer is found guilty for a second time or more of breaching any relevant condition or provision of employment, the fine shall be not less than five thousand Euro (€5,000) and not exceeding seven thousand Euro (€7,000).
Previously, fines were capped, ranging from two hundred and thirty two Euro and ninety four cents (€232.94) to a maximum of approximately two thousand three hundred and twenty nine euro (€2,329.37).
Another critical change introduced through these amendments was the extension of the prescriptive (limitation) period for bringing cases under EIRA. Whereas previously employees had a relatively limited timeframe to lodge claims of one (1) year, the extended period now gives them a broader window within which to initiate action.
Article 47(1) of the Act now provides that criminal proceedings for any offence under the Act or its subsidiary legislation must be initiated within two (2) years allowing any applicant a longer and fairer period of time within which to bring proceedings before the competent court.
However, this shift means that employers must retain employment documentation for longer and ensure that internal processes are robust, consistent and fully compliant, since disputes may arise long after the employment relationship has ended.
4. Monitoring the Pay Transparency & Labour Migration Policy
Parallel to these reforms, 2025 also marked the beginning of Malta’s implementation of pay-transparency obligations, an area driven by the EU Pay Transparency Directive, and the broader principle of equal pay for work of equal value. New rules now require employers to disclose the starting salary or salary range in job advertisements or during recruitment, and employees may now request information about pay levels of comparable roles to assess whether potential gender-based pay disparities exist. These initial obligations are only the first phase of reform. In fact, amendments have already been made to the Transparent and Predictable Working Conditions Regulations (S.L.452.126).
Employers are expected to prepare for further transparency duties in the coming months, including job evaluation requirements, pay audits, structured grading systems and reporting responsibilities. This means that organisations should already be reviewing their pay structures, job descriptions and evaluation systems so that they are able to demonstrate equal pay for work of equal value and avoid future disputes or enforcement action. These expectations are set to intensify as Malta moves towards full transposition of the EU directive, making it essential for organisations to begin internal preparations as early as possible.
Furthermore, employers must closely monitor ongoing developments in Malta’s Labour Migration Policy. The policy, which began its phased implementation in 2025, is expected to continue evolving, bringing with it changes to the recruitment and retention of third-country nationals. Employers may face new advertising obligations, revised permit procedures, additional compliance checks and more stringent oversight, meaning that HR departments dealing with non-EU workers should update their processes now to avoid future difficulties.
5. Proposals for 2026
Looking beyond the reforms already in force, 2025 also saw several proposals put on the national agenda that may materialise into law in 2026. One of the most discussed is the proposed introduction of maternity leave for mothers through surrogacy, including cases where the birth occurs abroad.
Another proposal under consideration is the creation of neonatal or NICU (Neonatal Intensive Care Unit leave) support leave, which would grant parents paid time off when their newborn requires intensive care in a neonatal unit. Both these proposals form part of a broader trend towards strengthening family support mechanisms and updating the law to reflect the realities faced by modern families in this regard.
At a more procedural level, 2025 also saw two (2) major discussions gaining momentum at national level. The first concerns the need for Industrial Tribunal reform. There is growing recognition that the Industrial Tribunal requires clearer guidance on compensation, more consistency in the types of remedies awarded, and procedural improvements to increase efficiency. Reform in this area would significantly affect both employers and employees, as clearer rules would make outcomes more predictable and reduce litigation uncertainty.
The second discussion relates to Wage Regulation Orders (WROs), which regulate particular industries, where there is increasing interest and push for establishing a Permanent Committee tasked with reviewing WROs, modernising outdated provisions, addressing fragmentation between sectors and ensuring that wage rules better reflect contemporary labour market conditions. These discussions suggest that employers operating in WRO-regulated sectors may need to prepare for adjustments in sectoral pay and conditions in the near future.
Conclusion
The developments of 2025 reflect a clear trajectory in Maltese employment law. There has been a shift towards stronger employee protections, especially due to more rigorous transparency obligations, and enhanced enforcement. Employers are always well advised to adopt a proactive approach by keeping policies updated, strengthening record-keeping, training their team managers, and preparing for further reforms that will shape the workplace in the months ahead.
How Can AE Help
At AE Legal, we assist employers and employees in navigating Malta’s evolving employment law framework with confidence. From updating HR policies and leave entitlements to preparing for pay transparency obligations and future reforms, our team provides clear, practical advice to help you stay compliant and prepared for what lies ahead.
