Part 4: Objective, Gender-Neutral and Bias-Free through Pay Transparency
In this final instalment of our four-part series on Malta’s Equal Pay (Transparency and Reporting) Regulations, 2026 (Legal Notice 173 of 2026), we turn to Part V of the Regulations, which sets out the provisions governing enforcement, remedies, and procedural safeguards on pay transparency. These provisions are of immediate practical relevance to employers assessing their exposure and to workers contemplating redress.
Protection Against Less Favourable Treatment
Article 13 immediately establishes a clear prohibition against victimisation. It is unlawful to subject any worker or employees’ representative to less favourable treatment for having exercised their rights under the Regulations or for having participated in proceedings for redress on grounds of an alleged breach. This protection is essential to the effectiveness of the entire regime. Without it, the transparency rights and reporting obligations established in the Regulations would be rendered hollow, as workers would be deterred from exercising them for fear of reprisal.
Procedure – Redress in front of the Industrial Tribunal
Article 14 establishes a comprehensive remedial framework for workers who have sustained a loss in pay as a result of a breach of the principle of equal pay for equal work or work of equal value. The provision operates without prejudice to any criminal proceedings or to any conciliation or mediation proceedings initiated with a view to rectifying a breach, meaning that multiple avenues of redress may be pursued concurrently.
A worker who has sustained a loss in pay may refer the matter to the Industrial Tribunal for redress, even following their termination from employment, as provided in article 30 of the Employment and Industrial Relations Act (Cap. 452). Importantly, however, the timelines established under article 30 of the Act do not apply to equal pay claims. Instead, the specific prescription periods established in regulation 16(1) govern.
Any action or proceedings for a claim for loss of pay and compensation under article 14 may be brought within a period of 3 years, notably longer than certain other employment-related limitation periods under Maltese law. This reflects the reality that pay discrimination is often systemic and may take considerable time to detect.
The prescription period is subject to the general rules on suspension and interruption of prescription under the Civil Code (Cap. 16). In addition to those general rules, the Regulations provide that the prescription period shall be interrupted or suspended when:
- the claimant has submitted a complaint to the employer; or
- the claimant has initiated proceedings before the Tribunal.
One must note that payment of lost pay includes full recovery of back pay and related bonuses or payments in kind. The Regulations require that the payment of lost pay place the worker in the position in which that person would have been had no breach occurred or had such person not been discriminated against based on sex.
Over and above lost pay, a worker is entitled to compensation for damages. The Regulations require that such compensation be real and effective, dissuasive and proportionate. Specifically, it must include compensation for lost opportunities; non-material damage; and any damage caused by other relevant factors, including intersectional discrimination.
Thus, compensation is not limited to quantifiable financial loss but extends to the broader harm suffered by the worker, and this in line with EU Directive 2023/970.
When awarding compensation, the Industrial Tribunal take into consideration all relevant circumstances of the case including the cooperation of the employer; the duration of any breach; whether the actions of the employer were manifestly unintentional and of a minor character; and whether the actions of the employer were motivated by vexatious reasons.
Where a claim is brought before the Tribunal and no categorisation of workers has been carried out by the employer, the Tribunal is empowered to appoint an expert for the purposes of such categorisation. The parties may suggest an expert but failing agreement, the Tribunal appoints one itself. Hence, an employer’s failure to comply with its categorisation obligations does not prevent a worker from pursuing a claim.
Any party aggrieved by a decision of the Industrial Tribunal relating to the principle of equal pay may moreover appeal to the Court of Appeal as provided in article 82 of the Act.
In all proceedings other than criminal proceedings, and in any mediation or conciliation procedures concerning alleged direct or indirect discrimination resulting from a breach of the principle of equal pay, where the plaintiff establishes facts from which it may be presumed that there has been direct or indirect discrimination, the burden shifts to the employer. The employer must then prove that there has been no direct or indirect discrimination in relation to pay.
The Regulations also permit collective enforcement. Any association, the Equality Body, employees’ representatives, or other legal entity having a legitimate interest in ensuring compliance may engage either on behalf of, or in support of, the worker (with the worker’s approval) in any judicial or administrative procedure for the enforcement of the Regulations.
Article 18 imposes a duty on employers and any person or organisation to whom the Regulations apply to bring the provisions of the Regulations to the attention of their workers, members, or any other persons who may be affected.
Offences and Penalties
Any person contravening the Regulations is guilty of an offence and liable on conviction to a fine (multa) of not less than €2,500 and not more than €5,000.
Where the offence consists of, or is connected with, a breach of the equal pay principle on the basis of gender and intersectional discrimination, the fine increases to not less than €5,000 and not more than €7,000.
The Court must take into consideration whether the offence constitutes a repeated infringement, and where it so finds, it shall impose a more severe punishment within the established limits.
A worker or any interested party who establishes prima facie evidence of a breach may also request the Industrial Tribunal to issue an interim order that:
- requires the cessation of any alleged infringement; and/or
- orders the adoption of specific measures necessary to ensure compliance with the equal pay principle.
This interim relief mechanism provides a fast-track procedural tool in cases of ongoing discrimination where the passage of time would cause irreparable harm.
Where a worker has been seconded or supplied to a parastatal or Government entity and a collective agreement applicable to such worker remains in force, that worker may not institute proceedings under the Regulations solely in relation to pay differences with the receiving entity for as long as the collective agreement subsists. The same applies mutatis mutandis to other employees of the receiving entity, in relation to pay differences with seconded or supplied workers. Then, upon the expiry of the collective agreement, the seconded or supplied worker is entitled to the same pay and benefits as employees of the receiving entity.
Conclusion
Workers and their representatives now have access to a combination of civil remedies. Employers, for their part, must recognise that failure to implement the transparency obligations carries financial penalties and procedural consequences.
How Can AE Help
Malta’s new Equal Pay (Transparency and Reporting) Regulations, 2026 introduce significant obligations for employers and new rights for workers. AE supports employers in reviewing pay structures, implementing objective and gender-neutral pay practices, and preparing for compliance with the new legal framework.
Get in touch with AE to discuss how these new requirements may impact your organization and how we can help.
*This is Part 4 of a four-part series on Malta’s Equal Pay (Transparency and Reporting) Regulations, 2026. In Part 1, we examined the foundational framework and substantive equal pay obligations. In Part 2, we addressed pay transparency obligations for job applicants and employees. In Part 3, we discussed gender pay gap reporting and joint pay assessments. This final instalment has covered enforcement mechanisms, remedies, and penalties.*
