On 6th June 2025, the Employment and Industrial Relations (Amendment) Act was published in the Government Gazette. This Act is set to come into force on 6th August 2025.
The key amendment introduced by this legislation targets Article 45 of the Employment and Industrial Relations Act (Chapter 452 of the Laws of Malta), specifically by increasing the fines imposed on employers found in breach of employment law. Under the current law, an employer who violates any recognised condition of employment, whether set out in a national standard order, sectoral regulation order, collective agreement, or under Chapter 452 or any regulations made thereunder, is, unless a different punishment applies, liable on conviction to a fine ranging from €232.94 to €2,329.37. With the introduction of the new amendment, employers will soon face stricter fines ranging from €2,000 to €5,000. It is important to note that where the employer is a repeat offender, the fine will increase to a minimum of €5,000 and may reach up to €7,000.
Moreover, the new Act extends the prescriptive period in which the prosecution can proceed to take action against employers. Previously limited to one year, the time limit for prosecution has now doubled to two years from the date of the commission of the crime.
This document does not purport to give legal, financial or tax advice. Should you require further information or legal assistance, please do not hesitate to contact Dr. Christine Calleja.