Parliamentary Approval of the Bill
On the 28 May, 2025, a bill allowing for higher fines and longer prescriptive periods under the Employment and Industrial Relations Act was approved at third reading by the Parliament of Malta. Following this approval, this bill shall be enacted into law.
Penalties for Breaches
Currently, employers who breach employment conditions—whether under the Employment and Industrial Relations Act, a national standard order, sectoral regulation order, or a collective agreement—face fines ranging from EUR 232.94 to EUR 2,329.37.
Once the new law comes into force, these penalties will increase significantly. Employers found in breach will face a minimum fine of EUR 2,000 and a maximum of EUR 5,000 for a first offence. For repeat offences, the minimum fine rises to EUR 5,000, with a maximum of EUR 7,000.
The new law reinforces the need for stricter adherence to employment rules - compliance has always been mandatory, but now the consequences of non-compliance are significantly more severe.
Recommended Employer Action
Employers are encouraged to review their current practices and ensure alignment with all applicable legal standards. In addition to the financial penalties, the bill also extends the time limit for filing proceedings. Currently, legal action must be initiated within one year of the offence. Under the new law, this prescriptive period will be extended to two years, giving employees and authorities more time to take action.
These changes apply specifically to offences under the Act, which are treated as criminal matters and heard before the Court of Magistrates. The bill does not affect cases brought before the Industrial Tribunal, such as those involving unfair dismissal.
How We Can Help
At Chetcuti Cauchi Advocates, our Employment Law team is ready to assist employers in navigating these legislative changes. We offer:
- Legal Compliance Reviews: Ensuring your employment practices meet the updated legal standards.
- Policy Updates & Training: Helping HR teams and management understand and implement necessary changes.
- Legal Representation: Supporting clients in proceedings before the Court of Magistrates and the Industrial Tribunal.
For tailored advice or assistance, please contact our Employment Law team.
