May 21, 2024


Think Differently

The new Work Businesses Regulations

The modern evolution of the labour industry has activated numerous atypical work arrangements prompting new Work Organizations Rules which arrive into influence on April 1. Although work agencies’ elementary purpose is to streamline the recruitment approach for employers and task seekers, these new polices will enrich their professionalism and accountability and enable boost additional fair and clear tactics in the employment company sector, writes Dr Mariella Baldacchino.

Scope of regulation 

The Laws protect 3 primary related routines carried out in Malta, namely (i) recruitment providers, (ii) short term function businesses, just one which hires momentary staff, and assigns them to consumer undertakings for short-term operate, beneath the supervision, way, and command of those user undertakings and (iii) outsourcing organizations, one particular that employs personnel and assigns them, to user undertakings, possibly on-internet site or remotely, but which retains supervision and route about these types of employees.

The Restrictions do not prolong to companies conducting recruitment for their very own firms or outsourcing agencies that offer specific professional and technological solutions.

Work agencies licence and vital modifications

Engaging in the functions of an work company calls for a valid licence issued by the Director of the Department of Industrial and Employment Relations (DIER). There are 2 various licenses, becoming (i) just one covering recruitment products and services and (ii) a different 1 masking momentary perform agency and/or outsourcing company. Numerous licences are demanded exactly where the applicant would be partaking in the actions pointed out in (i) and (ii) over.

Some of the salient requirements introduced by the Laws involve:

Applicants should provide proof of a financial institution ensure of a minimum amount € 20,000 and up to a most of € 300,000, dependent on selection of employees.

One (1) skilled man or woman, accredited by the DIER, ought to be engaged on a entire-time basis to control the agency. The skilled human being wants to be an EU citizen, residing in Malta.

Implications for work companies

The Laws existing both equally worries and options for enterprises. Swift compliance is needed, necessitating considerable time and assets, particularly for lesser firms. Compliance fees associated with acquiring licenses, retaining knowledgeable staff, and offering required lender ensures could pose money worries for corporations. Seeking assistance from authorized professionals or consultants could be certain adherence to regulatory requirements. However, non-compliance carries significant threats, as the DIER holds the authority to refuse or revoke licenses beneath precise instances outlined in the restrictions.

Even so, in just these challenges, work enterprises can find options to boost their techniques, improve their recruitment procedures and lead to a fairer and additional transparent career market place.

The software course of action

The software process commences with the applicant publicly displaying a notice of their intention to work an company for twenty-1 times, in addition to marketing the see in two day by day newspapers.

Subsequently, the applicant need to post a duly concluded software variety to the DIER, supplying crucial particulars these as particular and company specifics, and proposed routines, accompanied by the requested supporting documentation. Licence expenses are payable upon submission.

Refusal of software and bank guarantee

The Director is entitled to reject or refuse to renew a license less than specific instances outlined in the Polices. These consist of failure to comply with regulatory necessities or license conditions, failure to meet up with tax and social stability obligations, convictions beneath the Work and Industrial Relations Act (EIRA) or relevant restrictions and charging fees for work expert services.  Likewise, the license will not be renewed if pursuing a detailed vetting procedure executed by the Malta Law enforcement Power, the applicant is considered unfit to give the products and services. This evaluation incorporates scrutinizing felony data for any convictions linked to immigration regulations among candidates, skilled people, directors, or men and women with considerable ownership stakes in the company.

Where the license is revoked or not renewed, the Administration Board will utilise the lender ensure to compensate influenced personnel. The revenue goes into the Businesses Guarantee Fund, managed by the Administration Board. The fund aids employees who get rid of their employment since their agency’s licence was revoked or not renewed.


By introducing a licensing regime and necessitating applicants to have the required units and competence in put, these Laws purpose to boost the professionalism and accountability of work companies, assure that companies work inside of lawful and ethical boundaries and supply high quality providers although safeguarding the legal rights and pursuits of both equally job seekers and companies. On top of that, the polices sustain requirements within the field, fostering rely on and assurance among stakeholders hence taking part in an critical function in advertising and marketing good and clear procedures in the work agency sector.

Dr Baldacchino is founder of Empleo, a authorized practice focused on work legislation related issues.

The material of this write-up is supposed to present a common manual to the matter make any difference. Specialist assistance ought to be sought about your precise instances.