Implementation of New Employment Agencies Regulations in Malta

Effective April 1, 2024, the latest Employment Agencies Regulations will come into effect, addressing previously unspecified matters in the realm of employment agency operations. These regulations encompass crucial aspects such as the licensing process, applicant requirements, distinctions between agency types, and potential repercussions for license refusal or revocation. Notably, businesses subject to these regulations have until June 2024 to secure the necessary licenses, with the Department for Industrial and Employment Relations (DIER) initiating the acceptance of license applications as of January 1, 2024.

Affected Entities

The regulations primarily apply to recruitment agencies engaged in hiring individuals for work within or outside Malta, temporary work agencies, and outsourcing agencies. Companies recruiting employees for their own business operations remain exempt from these regulations.

Licensing Requirements

To ensure continuous operations, agencies falling under these regulations must obtain a valid license from the DIER by June 2024. The application process mandates the appointment of a competent person, who should either be a Maltese/EU citizen or someone entitled to equal employment-related treatment as Maltese citizens. This individual must possess either 6 years’ experience in human resources management or 3 years’ experience coupled with a relevant university degree. The regulations outline specific fees, details, and documentation requirements for the application, including the VAT number, Income Tax registration number, and business address. Temporary or outsourcing agencies are additionally required to provide a bank guarantee, the amount of which is contingent on the number of employees.
Once obtained, a license is valid for one year, renewable annually for a maximum of two years.

Appeals and Administrative Oversight

The regulations delineate grounds on which the Director of Employment and Industrial Relations may refuse or revoke a license, encompassing violations of regulations, failure to comply with license requirements, and neglecting to report operational changes. Non-compliance may result in fines ranging from €5,000 to €30,000. In the event of dissatisfaction with any decision arising from these regulations, applicants can follow the established appeal procedure in the Employment and Industrial Relations Act.

Moreover, the regulations establish an Administration Board tasked with overseeing the application process and verifying necessary documentation submitted by temporary and outsourcing agencies.

How We Can Assist

Our seasoned legal team is well-equipped to guide you through the application process and offer comprehensive consultancy services to ensure compliance with the new Employment Agencies Regulations. We provide tailored support to meet your specific needs, facilitating a seamless application procedure and ensuring prompt compliance.