Proposed Amendments to Maltese Employment Law
The Maltese government has proposed changes to the Employment and Industrial Relations Act aimed at improving worker protection and ensuring stronger enforcement of employment laws. The proposed Employment and Industrial Relations (Amendment) Act, 2025 seeks to amend key provisions of the Employment and Industrial Relations Act (Chapter 452 of the laws of Malta; hereinafter the “Act”). By virtue of Bill Number 132 (the “Bill”), which may be accessed here, notable changes have been introduced to the penalty regime for breaches of local employment law and extends the prescriptive period for instituting proceedings related to such breaches.
The objective of the Bill makes clear that the legislative intent is twofold:
- To enhance the enforceability of employment rights through increased penalties; and
- To provide a longer window for initiating legal action in respect of employer violations.
These amendments represent a strengthening of the enforcement mechanisms with the stated intention of ensuring greater accountability and deterrence in cases of employer misconduct.
Harsher punishments for breaches of recognised employment conditions
Under Article 45(1) of the Act, an employer who breaches, contravenes or fails to comply with any recognised condition of employment or provision of the Act (unless a specific penalty is prescribed) is liable on conviction to a fine (multa) ranging from two hundred and thirty two Euro and ninety four cents (€232.94) to two thousand and three hundred and twenty-nine Euro and thirty seven cents (€2,329.37).
In accordance with the Bill, the amendment significantly raises the aforementioned penalties for such breaches of recognised employment 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).
These two (2) proposals represent a substantial shift in approach, both in scale and principle. The current minimum penalty is increased nearly tenfold, which underscores a stronger deterrent approach by the legislature. Additionally, the inclusion of a graduated penalty structure for repeated offenders further reflects a strong emphasis on curbing habitual non-compliance of employers, the protection in favour of employees as the weaker part to the employment relationship and overall reinforcing the seriousness of employment rights breaches in the local context.
Extension of Prescription Period
Article 47(1) of the Act provides that criminal proceedings for any offence under the Act or its subsidiary legislation must be initiated within one (1) year from the date of the offence, meaning when the offence allegedly took place.
However, the proposed change reiterates that the prescriptive period will be extended to two (2) years allowing any applicant a longer and fairer period of time within which to bring proceedings before the competent court.
This extension positively acknowledges the practical challenges that employees, and their legal representatives, trade unions, the Department of Industrial and Employment Relations (DIER) and other affected stakeholders may face in discovering, documenting, and initiating proceedings within a short time frame. Therefore, a two (2) year limitation period aligns better with the need for investigation, and fair redress, especially in more complex or delayed reporting cases.
Concluding remarks: Legislative Intent and Broader Implications
These reforms, if enacted, are expected to strengthen the role of regulatory enforcement under the Act and provide employees with a greater chance to seek justice. Employers, on the other hand, should reassess their systems in place and revise their practices accordingly in order to avoid potential repeat infractions that may now carry harsher financial consequences. In this way, employer accountability shall no longer be undermined by outdated limits or ineffective sanctions.
How Can AE Help
Keeping up with changes in employment law can be challenging. At AE Legal, we provide practical, up-to-date guidance to help employers stay compliant. Whether you need advice on the proposed amendments or support in reviewing your current policies, our team is here to help. Contact us today for a consultation.
