Tougher penalties for employers who violate workers' rights

Employers in Malta who breach workers’ rights will soon face significantly harsher penalties under new amendments to employment law announced by the government on Tuesday. 

The reform, which was unveiled by Parliamentary Secretary for Social Dialogue Andy Ellul, will see fines rise by thousands of euros in a bid to clamp down on abusive employment practices.

At a press conference, Ellul said the legal changes are intended to bring greater seriousness and justice to workers and represent another fulfilled electoral pledge to strengthen worker protections. Currently, employers found guilty of underpaying staff, withholding wages, or failing to compensate workers for overtime or public holidays face fines as low as €232, even in repeat cases.

Last month, 11 food courier operators were fined a measly €1,076 each after admitting to breaching employment laws and for depriving couriers hundreds of thousands of euros in wages.

Under the new legal framework, a first offence will carry a fine of between €2,000 and €5,000. A second or subsequent offence will result in fines ranging from €5,000 to €7,000.

In addition to the increased penalties, the statute of limitations for investigating employment law breaches will be extended from one year to two years, giving both employees and the Department of Industrial and Employment Relations (DIER) more time to act on complaints and pursue legal action.

“This remains a government that takes concrete decisions to defend and protect workers,” Ellul said. “With this measure, we’re ensuring greater justice for workers and continuing our path toward a country of quality, where only seriousness is tolerated.”

Ellul also highlighted several other labour reforms introduced in recent years, including laws regulating employment agencies, new protections for gig economy workers such as food couriers, and increases to the national minimum wage. He said the latest changes were aimed at the broader employment landscape and send a clear signal that violations of labour law will no longer be met with token consequences.

Diane Vella Muscat, Director General of DIER, welcomed the amendments, calling them “essential tools” for enforcement and a step toward fairer working conditions. “These reforms will strengthen worker protection and help ensure fair employment practices,” she said.