Strengthening Enforcement: A new Bill amending the Employment and Industrial Relations Act (CAP 452 of the Laws of Malta)

Authors: Clyde Bonnici & Pamela Dingli

On 14th April 2025, the Government tabled before the House of Representatives Bill Number 132 (‘the Bill’), proposing amendments to  the Employment and Industrial Relations Act (CAP 452) (‘EIRA’). In essence the Bill focuses on two important amendments –

• The increase of the monetary punishments imposed by Maltese employment law for breaches of the same, supplemented with the introduction of aggravated punishment; and

• The doubling of the prescriptive period within which criminal action may be instituted by the Police, and in which cases the Department of Industrial and Employment Relations (‘DIER’) is the prosecutor, in case of alleged breaches of the Maltese employment law.

First Amendment: Increased Fines in Maltese Employment Law

Although the Industrial Tribunal has exclusive competence to hear and decide specific cases of employment law, such as all cases of unjust dismissal, breaches of Maltese employment laws carry criminal sanctions. Indeed, upon a claim alleging one or more breaches of  Malta Employment Law, the inspectorate section of the DIER conducts an investigation to determine whether such breach exists. If the investigation determines that a breach exists, the Executive Police issue charges against the alleged perpetrator, and an officer from the DIER serves as a prosecutor before the Court of Magistrates as a Court of Criminal Judicature.  Naturally, as dictated by the fundamental principle of criminal laws and procedure, the allegation/s made by the DIER against an employer have to be proven by the DIER prosecuting officers beyond reasonable doubt.

To date, upon the finding of guilt by the Court of Magistrates, and unless a different punishment is established for that particular offence (as is the case of discrimination and harassment), any employer who contravenes or fails to comply with any recognised conditions of employment prescribed by a national standard order or by a sectoral regulation order or collective agreement, or with any provisions of the EIRA or any regulations made thereunder shall, on conviction, be liable to a fine (multa) of not less than €232.94 and not more than €2,329.37.

Bill Number 132 aims to increase the aforesaid range of fines by setting the minimum amount to €2,000 up to the maximum fine of €5,000.

While it must be noted that the fines imposed by the relevant provision have never been increased since the promulgation of EIRA, it is clear that the fines are set to be increased substantially. The intention of the legislator is firstly to provide a deterrent and secondly, the proposal makes the work carried out by the DIER in monitoring, investigating and bringing employers to justice pay.

The increase of fines (multi) is not the only amendment being proposed. Indeed, a new proviso will be added to the law introducing an aggravated punishment for recidivists. Indeed the Bill holds that if the employer is found guilty for the second time or more, the fine (multa) shall be of not less than €5,000 and not exceeding €7,000. This introduction bears in mind specific sectors of the economy, such as those necessitating low-skilled employees, where it is not uncommon to have the same employer or employers who defy the laws over and over again.

It must be kept in mind that in case of a conviction, the Court of Magistrates hearing and deciding cases of breaches of EIRA and its subsidiary laws does not only award punishments as aforesaid but, at the request of the prosecution, it shall order the offender, on proof of the amount, to refund or pay to the employee or employees concerned, amounts due to him, such as wages which have not been paid.

Second Amendment: Extended Prescriptive Period Under Malta Employment Law

Since the promulgation of EIRA by means of Act XXII of 2002, the provision establishing a prescriptive period of one year from the commission of the offence, has never been amended.

The institute of prescription ensures that criminal actions are instituted in a timely manner, balancing justice with the need for legal certainty by having the action reach a conclusion. To date, the period of prescription for criminal cases arising out of a breach of Maltese employment law is of one year, possibly because these have always been considered as less serious offences than other crimes.

The prescriptive period shall run from the day when the offence is committed. By means of the Bill, the prescriptive period applicable to proceedings for an offence which falls under EIRA shall be extended to two years.

In practice, this amendment does not only permit the enforcement officer to strengthen his case by allocating him more time to gather evidence proving the same, and to prepare for the upcoming proceedings,  but gives the prosecution more time to trace the accused and to notify him, as per the applicable procedure, with the case being brought against him in terms of law.  

Conclusion: Strengthening Malta Employment Law Enforcement

The ether for Bill Number 132 to become law is still at its early stage. The Bill is yet to undergo its 2nd Reading before the Plenary session of Parliament, which will be followed by the scrutiny of the Consideration of Bills Committee, and a 3rd Reading before the Plenary.

Nevertheless, Bill Number 132 represents a historic Maltese Employment Law development, in that for the first time in the EIRA’s history, the legislator is increasing fines (multi) for criminal employment law violations, and increasing the prescriptive period of same. This in an attempt to curb an ever-present concern in Maltese society: violations of Maltese employment law.