Malta Introduces Comprehensive Labour Migration Reforms to Address Worker Dismissals and Wage Disparities
The Maltese government has proposed significant reforms to its labour migration policies, including measures aimed at barring employers from recruiting third-country nationals (TCNs) if their employment practices demonstrate a pattern of indiscriminate worker dismissals.
New Measures to Address Labour Market Concerns
Under the proposed reforms, companies with high termination rates will face restrictions on hiring TCNs. Specifically, small businesses with termination rates exceeding 50% will fail the Labour Market Needs Test (LMNT), effectively preventing them from employing non-EU workers. This measure is one of 32 recommendations set out in the consultation document, which is open for public feedback until February 9, 2025, with implementation targeted for later that year.
The reforms also address wage disparities highlighted by recent data from the Church’s Justice and Peace Commission. Currently, TCNs earn an average annual salary of €18,443 significantly lower than the €22,912 earned by Maltese workers and €25,319 by EU nationals. These disparities have widened over the past decade, with TCN salaries increasing by only 20% compared to 44% for Maltese workers.
Grace Period Extension for TCNs
In a progressive move, the policy extends the grace period for TCNs who lose their jobs. This extension aims to provide stability and reduce the economic vulnerability of affected individuals.
Regulation of Recruitment Practices
To enhance transparency, employers will be required to advertise job vacancies on the European Employment Services (EURES) portal instead of informal channels like social media. This measure aims to ensure that recruitment processes are equitable and adhere to regulated standards.
Work Permit Fee Structure
The proposed reforms include a tiered fee structure for work permits, incentivising long-term employment relationships. First-time applications will incur a fee of €600, while annual renewal fees will be reduced to €150. Highly skilled workers benefiting from specific initiatives will be eligible for automatic three-year renewals. Additionally, TCNs engaging in training and integration programs will see their permit renewal periods extended from one to two years.
Enhanced Compliance Measures
Starting in 2025, all salary payments to TCNs must be conducted via bank transfers, ensuring transparency and compliance with employment contracts. Employers found in breach of labour laws, such as failing to comply with contractual obligations or engaging in exploitative practices, will face disqualification from hiring non-EU workers.
Government agencies, including Jobsplus and Identità, will bolster their oversight capabilities through desk investigations, audits, and spot checks to ensure adherence to these measures. Employers will also need to provide verifiable evidence of candidates’ qualifications, experience, and language proficiency before hiring TCNs.
Alignment with Labour Market Needs
The reforms introduce limits on the number of TCNs that companies can hire, based on a fixed percentage of their workforce. These limits aim to prioritize local and EU talent while allowing flexibility in sectors facing acute labour shortages, such as healthcare and elder care. A Skilled Occupation List (SOL) will also streamline applications for professionals in high-demand sectors, emphasizing a skills-based migration approach.
Integration and Worker Development
The government plans to invest in the upskilling and integration of TCNs through language training, vocational programs, and professional development opportunities. Employers demonstrating commitment to worker development will receive preferential treatment in recruitment applications.
Contradictions and Human Rights Concerns
While these reforms aim to address exploitation and align migration policies with labour market needs, recent government actions targeting long-standing immigrant communities have drawn criticism from human rights groups.
Implementation and Feedback
Stakeholders, including employer associations, unions, and NGOs, are invited to provide feedback on the proposals by February 9, 2025. Regular evaluations of the policy’s impact will guide future adjustments to ensure that it effectively balances economic growth, worker rights, and social cohesion.
These reforms represent a decisive step towards a more regulated and equitable labour migration framework, with the dual aim of addressing public concerns and sustaining Malta’s economic needs.
