Amendments to Employment and Industrial Relations Act – Higher Fines and Longer Prescriptive Period for Breaches of Employment Law

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Act No.XIV of 2025 has introduced significant amendments to the Employment and Industrial Relations Act (EIRA), Cap 452, aimed at straightening compliance with Maltese employment laws.

Increased Fines for Breach of Conditions of Employment

 

Under Article 45 of EIRA, employers who contravene or fail to comply with any recognised conditions of employment prescribed by a national standard order, sectoral regulations order or collective agreement  now face higher penalties:

  • thefine shall now range between €2000 and €5000  for employers who are found guilty for the first time.

  • Repeated offenders found guilty a second time or more of breaching the aforementioned conditions face the fines between €5000 and €7000.

These changes target repeated offenders and signal a stronger enforcement stance against non-compliance.


Extension of the Prescriptive Period

 

The prescriptive period stipulated in Article 47 for initiating proceedings in respect of an offence under the EIRA, or any regulations or orders made thereunder, has doubled from one year to two years.

This gives the Department of Industrial and Employment Relations (DIER) more time to investigate and prosecute breaches.

Employers should remain mindful that under Article 45 of EIRA the Court may, at the request of the prosecution and upon proof of the amount owed, impose additional fines requiring the employer to:

  • Refund or pay the sums due to the affected employee(s) and
  • In cases where holidays with pay were not granted, pay an amount equivalent to the wages for such holidays.

 

Purpose and Implications

 

The 2025 amendments are clearly intended to serve as a strong deterrent non-compliance by employers and gives DIER additional time to conduct thorough investigations and institute criminal proceedings against employers in breach of Maltese Employment Laws.  Employers are strongly advised to review their workplace practices to ensure they meet all legal requirements, while employees should be aware of their extended timeframe to report breaches.  


How can we help you?

At Empleo, we support on how these changes may affect your business or employment rights. For further information, please do not hesitate to contact us on info@empleo.com.mt or any of our other contact channels.


Disclaimer: 

The information provided in this article is for general informational purposes only and should not be considered as legal advice.

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Dr. Mariella Baldacchino - Founder

Mariella graduated from the University of Malta with a doctorate in law in 2005. She completed a master’s degree in ‘European Private Law’ from the La Sapienza, University of Rome, and was admitted to the bar in Malta in 2006.

Mariella is a people person – and it is this attribute which has really characterised and shaped her career.

Over the years, she headed the legal departments of several corporate services firms. Due to her skillset, she was also entrusted with managing and overseeing operations and human resources, where she gained technical and practical experience in various corporate, commercial and employment matters.

Her practical hands-on experience and insight perfectly complement Mariella’s technical knowledge of employment law, thus placing her in an ideal position to understand and advise employers and employees alike on various matters that may arise at the workplace.
Mariella is passionate about employment law matters and provides her clients with the highest-quality legal service to achieve the best possible outcome and resolve any employment law related issues and concerns.

Dr. Bradley Gatt - Of Counsel

Bradley graduated Doctor of Laws from the University of Malta in 2005 and was admitted to the Bar in Malta in 2006. He advises clients on various corporate, commercial, employment and regulatory matters, with particular focus on company and financial services law.

He has assisted clients in various corporate and commercial matters by providing company law advice and assisting in the implementation of corporate finance, restructuring, mergers and acquisitions and similar transactions.

Bradley has also advised and assisted investment funds, fund managers and other investment services providers, banks and financial institutions, on various legal and regulatory matters relating to the setting up, authorisation and ongoing conduct of their activities in Malta.

His practice also covers general employment law matters. Bradley’s experience in company and financial services law enables him to focus on various corporate and regulatory aspects of employment relationships. In particular, he advises organisations on the implementation of employee share option and participation schemes, the implications of business transfers on employment relationships, as well as relations with senior employees.

Dr. Karl Sammut - Of Counsel

Karl graduated Doctor of Laws from the University of Malta in 2005 and was admitted to the Bar in Malta in 2006.

Karl has gained considerable expertise in technology law and regularly assists clients in relation to intellectual property issues, commercial contracts and ways to ensure compliance with the General Data Protection Regulation (GDPR) and privacy laws. Whilst such matters used to be only given incidental importance when dealing with employment matters, they are now widely acknowledged to be vital in all employment relationships. 

He is also regularly engaged by C-level executives to assist in negotiating employment contracts and settlement agreements.   

Karl advises across a multitude of industries including technology; marketing; adtech; financial services; gaming; esports; consumer products; and media and telecommunications.