Malta introduces rigorous new regulations for temping agencies in 2024, targeting ethical employment and curbing abuse of foreign workers.
In 2024, Malta is set to revolutionize the regulation of temping agencies with new laws aimed at ensuring ethical practices and preventing abuse of foreign workers. As outlined by Parliamentary Secretary Andy Ellul, these regulations, effective from April 1, 2024, are designed to bring more accountability and dignity to the employment sector, particularly impacting non-EU workers.
A central feature of these regulations is the mandatory licensing for temping agencies, effective January 2024, with a license fee of €3,000 initially and €1,500 for renewals. Agencies employing over 20 workers are required to contribute an additional 2% of their annual wage bill to a special fund.
Agencies are required to operate with a legally approved fund and maintain a bank guarantee of €20,000 plus 2% of the payroll. This is to ensure adherence to regulations during the license period and to secure payment for employees left jobless. Additionally, agencies losing their license will be blacklisted, prohibiting them from bidding on government contracts or recruiting workers from outside the European Union.
Additional rules for temping agencies
The regulations emphasize the importance of maintaining high standards within the industry. Agencies found guilty of abuse face fines ranging from €5,000 to €30,000, license withdrawal, and disqualification from public contracts. To ensure compliance, a working committee will oversee the due diligence process for license applications. The Department for Industrial and Employment Relations is tasked with supervisory responsibilities, including an appeals board to further safeguard against abuses.
These measures are part of a broader strategy to improve working conditions in Malta, ensuring that only quality workers are attracted to sectors where they are truly needed. The new laws prohibit exorbitant fees charged to workers for job placements in Malta, either upfront or deducted from their wages.
Through these comprehensive measures, Malta aims to establish a more professional and serious regulatory regime in its industrial law, ensuring that employment practices are dignified and free from exploitation.
Are you interested in acquiring a license for in-house work? Contact our office and we will organize an initial video call.
