Reforming the Industrial Tribunal

In July 2025, the Maltese Government formally launched a reform initiative aimed at modernizing the Industrial Tribunal, the principal adjudicative body responsible for resolving employment related disputes in Malta. The Tribunal plays a vital role in resolving disputes between employers and employees, safeguarding workplace rights, and ensuring industrial justice.

At the heart of this reform is the establishment of a Consultative Committee, announced by Parliamentary Secretary for Social Dialogue, Dr Andy Ellul. The Committee, which includes Tribunal chairpersons and representatives of social partners, has been tasked with drafting proposals to improve the Tribunal’s structure, legal framework, and operational efficiency.

One of the primary objectives of the reform is to introduce clear legal parameters for compensation awards, addressing long-standing concerns about inconsistency and unpredictability in Tribunal decisions. This move is expected to provide greater clarity and peace of mind for both employers and employees, particularly in cases involving claims of unfair dismissal or workplace injustice.

The reform also seeks to ensure that Tribunal decisions are delivered more swiftly, a response to delays that have historically affected the resolution of cases. Although the number of new cases has remained relatively stable, Malta’s labor market has evolved significantly.

These developments have underscored the need for a more agile and well-resourced Tribunal. The Consultative Committee is expected to present its proposals in the coming months, paving the way for legislative changes that will enhance the Tribunal’s ability to deliver timely, fair, and consistent decisions.