From 2025, Malta has planned to limit abuse from employers and offer stability to the foreign workers.
- High-termination employers will not be permitted to hire new foreign employees.
- Payments will be via bank transfer, no more cash salaries
- Before visiting Malta, foreign employees must complete a course on Maltese culture.
- Depending on retention ratios, permit fees may increase or decrease.
- A 60-day grace period is granted to TCNs who lose their jobs.
Any employer who fires employees, including Maltese nationals, will not be allowed to hire a non-EU candidate for the same position within the next 12 months. This is one of the 32 recommendations included in the about migration policy unveiled on Wednesday. It is intended to encourage employers to retain their workforce.
The public is being asked to comment on the policy piloted by Home Affairs and Jobs Minister Byron Camilleri by February 9th. The government plans to gradually implement the policy over the course of the upcoming year.
By lowering the rate of foreign worker turnover and preventing worker abuse, the policy’s fundamental goal is to establish stability.
In order to achieve this, the policy will also establish minimum termination rates for businesses that apply for third-country nationals’ work permits. A small business, defined as one that employs 10 to 50 people, will have any new applications for third-country nationals denied if it has terminated more than 50% of its employees in the last 12 months. Medium and large businesses are subject to lower thresholds, but microbusinesses—those with one to nine employees—are not.
Restriction on hiring
Small companies with 10–49 employees are prohibited from hiring new employees if 50% or more of their third-country national workforce has left or been fired in the past 12 months.
That threshold is 40% for medium-sized businesses with 51–249 employees and 35% for large businesses with 250 or more employees. The rule does have some exceptions. Only national workers from third countries are covered by this policy. The rights currently enjoyed by EU and Maltese workers will remain in place.
Micro-businesses with fewer than nine employees will not be subject to the measure. Companies in the health, disability, and senior care sectors, as well as foreign direct investment that Malta Enterprise considers essential to economic growth, are exempt from this rule. Similar to how student employees are.
According to the government, thresholds were imposed following a labor market study that revealed some businesses were rehiring their whole workforce twice a year. For the next 12 months, an employer who fires an employee because of a decline in business will not be able to hire another employee for the same position.
Modifications to permit fees
The cost of a work permit will also vary. Currently, the employers have to pay €300 annually to renew each worker’s permit. The policy suggests doubling the initial application fee for new hires to €600 and halving that to €150. Permits for employees in particular industries, such as healthcare, elder care, and care for people with disabilities, will also be decreased.
The goal is to motivate the businesses to keep their current workforce instead of hiring new ones. To guarantee compliance, state authorities will have the the power to carry out desk investigations. Companies that are found to be mistreating their employees will be barred from hiring more employees.
Additionally, the policy seeks to reduce the rate of migration turnover brought on by already-employed foreign workers to leave Malta being compelled to leave Malta after losing their jobs. Moreover, the policy makes it easier for the foreign workers whose job has been terminated to find alternative employment. These individuals will be given a 30-day grace period, which can be extended by an additional 30-day, rather than being forced to leave right away. Instead of relying on new hires, this is meant to retain the current employees.
Wages will be paid via bank account
The policy will require businesses to pay non-EU workers’ wages straight into a bank account in order to improve the oversight of employment contract terms. Cash payments will no longer be accepted as meeting the terms of the employment contract, and employers will face consequences. However, this measure will be applicable to foreign workers who are already in Malta but wish to switch employers as well as those who are new to the labor market.
A residence permit that allows them to look for work will also be granted to parents of Maltese nationals under the age of 23 and partners of Maltese nationals.
In order to check whether employers are adhering to the current labor laws, the policy also places a strong emphasis on increased enforcement, particularly through desk investigations. Non-EU citizens may lose their ability to access the labor market if they fail to comply. Depending on security, public policy, or public health issues, the government also plans to create a list of high-risk nations. Before arriving in Malta, non-EU nationals will also need to complete an integration course. This will include details about the laws, customs, traditions, and values of Malta.
The policy is not intended to stifle economic growth – PM Abela
Prime Minister Robert Abela said at a press conference in Castille the policy is not intended to stifle economic growth. Abela stated that the reform is an essential part of the government’s 2050 vision and will assist the government in implementing “the necessary change” in migration flows. “We need to ensure foreign workers are engaged in those sectors where the country and the economy truly needs them, while ensuring that worker abuse is addressed,” he said. “We will only allow the entry of workers who are needed for our labour market,” said the PM.
He stated that the majority of businesses are diligent and compliant, and he believed the policy would encourage many of the more resistant businesses to follow through. He also added that there will be serious consequences for those who continue to break the law.
The government could only carry out such a reform, according to Employment Minister Byron Camilleri, because it boasts full employment and has maintained robust economic growth.
He declared, “We will tackle the labor market issues in the same manner that we have tackled the stagnant economy and unemployment in previous years.” We desire stability for our society, the labor market, and the workers. Employees cannot be changed frequently, or worse, used, and then discarded.
However, he said that workers must adjust to the culture and way of life of the Maltese people, and it is the Maltese people’s responsibility to assist them in doing so. For this reason alone, employers who keep their staff will receive rewards. Some people mistakenly think that Maltese workers are not impacted by mistreatment of foreign workers. That’s incorrect, it does,” he stated, adding that when employers mistreat employees, they are mistreating everyone since they convey the idea that if employees defend themselves, they risk being fired and replaced by a foreign worker.
The public consultation process is open till February 9 and anyone can submit feedback on publicconsultation.gov.mt.
