The newly introduced Employment Agencies Regulations (L.N. 270 of 2023), issued on the 23rd of November 2023, shall come into force on 1st April 2024, concurrently nullifying the previous Employment Agencies Regulations (S.L. 594.18). These Regulations establish a framework to regulate previously unregulated services by employment agencies.
Who is affected?
Agencies engaged in recruitment, labour supplies, temporary work or outsourcing are affected by the new regulations. However, activities centred around an employer recruiting individuals for his own business or specified recruitment by marketing agencies, fall outside of the purview of these regulations.
License Application
Agencies falling within the scope of these regulations will have up until June 2024 to secure the necessary licenses and as from 1st January 2024, applications for licenses will be accepted by the Director of Employment and Industrial Relations (‘DIER’).
First-time applications, shall cost €3000 and must be submitted to the DIER together the applicant’s details, VAT registration number, Income Tax registration number, business address, activity specifics, company’s good standing certificate and a recent tax compliance certificate. Renewal applications cost €1,500. Successful applications are valid for one year; renewable for a subsequent one-year period to a maximum of a two-year period.
For an application to be successful, a competent individual who resides in Malta and is either a Maltese/EU Citizen or someone who is entitled to the same treatment as Maltese citizens either concerning employment matters or on account of their family relationship, must be appointed. According to the regulations, this individual must be qualified and/or have experience in human resources management.
Agencies involved in temporary or outsourcing activities must also provide a bank guarantee prior to the commencement of the license. The required amount varies based on employee count, with additional sums linked to annual payroll. This guarantee will be held by the Administration Board and will be released within a three-month period from termination or non-renewal of
license, provided that all obligations are satisfied.
The DIER reserves the right to refuse or revoke licenses due to any breaches, with fines ranging from €5,000 to €30,000 issued for any breaches of these Regulations.
Entities holding valid licenses preceding the implementation of these Regulations can continue operating according to the terms of their current license until expiry. Following this, they are required to apply for a fresh license within the stipulated time frames to ensure both continuity and compliance with the regulations.
