Regulations for Temping Agencies in Malta 2024
The Maltese government has announced the plans to regulate temping agencies, setting the stage for a paradigm shift in the employment landscape. The new regulations, slated to come into effect on the 1st April 2024, aim to establish a robust legal framework ensuring the ethical operation of temporary work agencies.
The primary objective of these regulations, is to ensure that temping practices are in alignment with laws regulating employment, encompassing employee work conditions and ethical recruitment standards. The initiative seeks to enhance visibility and monitoring of all operators within the sector, fostering a transparent and accountable environment.
The key Highlights of the New Regulations:
All temping agencies are mandated to apply for a license annually, with an initial fee of €3,000 and subsequent renewals costing €1,500.
The requirements to apply for the license are as follows;
- Operating from a Commercial Premises in accordance with the Development Planning (Use Classes) Order.
- Appointment of a competent person, either Maltese or European, possessing relevant experience and/or a degree in HR.
Due Diligence and Police Collaboration:
Rigorous due diligence, supported by the Police, will be conducted on prospective applicants, the appointed competent person, and company directors before the license is granted.
Authorities’ requirement is that of a bank guarantee, excluding agencies offering solely recruitment services, is set at €20,000 plus 2% of the payroll. This financial provision aims in securing compliance during the license term and protect employees who may find themselves without a job.
Consequences of Non-Compliance:
Companies lacking a valid license or found in violation risk disqualification from public procurement contracts and are barred from recruiting workers from outside the European Union.
Furthermore, agencies violating immigration or labour laws and failing to comply with the regulations will have their licenses revoked and face blacklisting.
Ethical Recruitment Practices:
A new requirement in that whereby a temping agent is prohibited from requesting payments from employees to come to Malta.
Employment of individuals who pay money to secure a job is strictly forbidden.
Agency Identita will not accept single permit applications from agencies operating without a valid license.
Penalties for Non-Compliance
Stringent fines ranging from €5,000 to €30,000 will be imposed on those who fail to comply with legal measures.
Immediate license suspension is slated for severe instances, with repeat offenders facing license revocation.
Restrictions on Service Usage:
Individuals and companies are expressly prohibited from using the services of agencies not authorized to conduct temping work.
These groundbreaking regulations mark a decisive step towards ensuring fair, ethical, and lawful practices within the temping industry in Malta. As of the 1st of April 2024 deadline approaches, businesses and agencies are urged to proactively engage with these new measures to uphold industry standards and contribute to the creation of a more just and transparent employment landscape in Malta.
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