New amendment to EIRA comes into force today

Today, the 6^{th of} August 2025, a major amendment to the Employment and Industrial Relations Act (the ‘Act’) came into force, following a period of two (2) months from its date of publication in the Government Gazette, which was dated 6^th June 2025. The changes brought about by this amendment are the following.

First, the Act now extends the rather short prescriptive period of one year for offences. Since the promulgation of EIRA in 2002, the provision establishing a prescriptive period of one year from the commission of the offence, has never been amended. By means of the amendment, the prescriptive period applicable to proceedings for an offence which falls under EIRA has been extended to two years. This extension will be beneficial for both the DIER as competent authority entrusted with enforcement as well as the employee. Indeed, the DIER is now allowed more time to thoroughly investigate and to then institute criminal actions against employers who are in breach of the Maltese labour laws, including where the Police are unable to notify the employer in time due to ongoing investigations, or instances where the employer could not be found. The employee is being given more time to take action, including the filing of the complaint itself and further gathering of information and proof.  

Secondly, the punishments under article 45 of the Act are now increased. The range of punishment which can be imposed by the Court of Magistrates hearing cases alleging breaches of the law is a fine between two thousand euro (€2,000) and five thousand euro (€5,000) for principals found guilty for the first time. If a principal is a recidivist, the fine (multa) shall be no less than five thousand euro (€5,000) and no more than seven thousand euro (€7,000). It must be kept in mind that in case of a conviction, the Court 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.

As of today, therefore, these amendments will surely provide a stronger deterrent for employers going forward. All employers are now aware that the consequences of their actions or of their failure to act, are to be considered against legal framework with stronger tools for enforcement.