The new Employment Agencies Regulations shall come into force on the 1st of April 2024. The Regulations will address previously undetermined matters such as the licensing process, the applicant’s requirements for the acquisition of the same license, distinction between agency types, and the potential repercussions or grounds for refusal or revocation of an employment agency license. Most importantly, a deadline has been set, for the employment agency subject to these regulations, which will have until June of 2024 to obtain the required license/s. The Department for Industrial and Employment Relations (‘DIER’) has begun to accept license applications as of the 1st of January 2024.
Businesses affected by the Regulations
These Regulations apply to recruitment agencies which recruit persons for employment in or outside of Malta, temporary work agencies and outsourcing agencies. Companies who recruit employees to work for their own business are not affected by these Regulations.
Licensing
For such agencies to continue operating, the Regulations stipulate that a valid license needs to be acquired from the DIER. Agencies have until June 2024 to acquire such license.
In order to apply for the license, a competent person must be appointed. Such person has to be a Maltese/EU citizen or another person who is entitled to equal treatment to Maltese citizens in matters related to employment or on account of their family relationship. Such person needs to have 6 years’ experience in the management of human resources or 3 years’ experience together with a related university degree. Furthermore, the Regulations stipulate the fees, the details and documentation which the applicant must submit together with his application for the afore-mentioned license. These include, amongst others, the VAT number, the Income Tax registration number and the business address. The Regulations also require the agency involved in temporary or outsourcing activities, to provide a bank guarantee, the amount of which depends on the number of employees.
Once a license is acquired, this is valid for a period of 1 year and can be renewed every year, for a period not exceeding 2 years.
Appeals and the new Administration Board
The Regulations also list down the reasons upon which the Director of Employment and Industrial Relations may refuse or revoke a license. These include, amongst others, instances where the agency goes against regulations or license requirements, whenever its actions are contrary to its objectives, or when it neglects to notify the director of any changes to its operations. Failure to comply with the provisions of these Regulations can lead to the imposition of fines, the amounts of which range from €5,000 to €30,000. Nonetheless, if an applicant feels aggrieved by any decision regarding matters emanating from these regulations, the appeal procedure should follow that as established in the Employment and Industrial Relations Act .
Additionally, the Regulations establish an Administration Board, its aim being to oversee the application process and other required documentation which temporary agencies and outsourcing agencies are required to produce.
How we can help
Our team of experienced lawyers can assist you with the application process and any other consultancy required to guarantee compliance with the new Employment Agencies Regulations. Our team can assist you and provide thorough support catered to your particular needs, guaranteeing a smooth application procedure and prompt compliance.
