Isaac Saliba
The government yesterday presented a labour migration policy which, in the words of the Prime Minister, is aimed to regulate how workers from outside the European Union could enter the Maltese labour market.
Addressing the media, PM Robert Abela said that Malta’s population is getting older, and there are 1,000 more people leaving employment than those finding a job each year.
This means that there are various sectors that need beefing up in terms of numbers, and as such Malta needs to “import” labourers to make up for the difference.
“Malta has a strong economy, so much so that among the Maltese population there is full-employment,” the Prime Minister said. But there are then pockets where the number of Maltese workers available is not enough, and so this requires additional labourers who come from outside the European Union, Abela said.
Home Affairs Minister Byron Camilleri presented 32 recommendations as part of the new labour migration policy, some of the recommendations include that employers with high termination rates relative to the size of their business will be barred from employing or bringing in new third country national workers, as well as a recommendation for such workers to be required to take a course on Maltese culture and society prior to departing for Malta, along with requiring new third-country national (TCN) workers to have their pay deposited into a bank account.
The latter recommendation means that paying TCNs by cash will not be recognised as fulfilling the employment contract requirements, Camilleri stated. He added that this condition will begin applying to new applications and change of employers starting with the implementation of the policy, meaning that it does not apply retroactively to workers already in Malta.
Camilleri stated that the public consultation has been opened and will close on 9th February 2025, meaning that there is a month for the public to provide feedback and offer suggestions to amend the labour migration policy. Camilleri commented that the members of the Malta Council for Economic and Social Development were the first to be given details regarding the policy as social partners. He remarked that the topic of labour migration is a very relevant theme that the government felt needs to be addressed. He added that the public consultation has been opened with the aim for people or entities to come forward and suggest improvements to the policy, and continued that many of the proposals currently in the document were based on feedback from discussions that have already taken place.
The labour migration policy indicates that TCNs who are present in Malta but whose visas do not allow them to work, should not be able to apply for a single permit. “Identità should be in a position to reject such applications speedily.”
It continues that for TCNs within the employment age and who are residing in Malta who are a partner or parent of a Maltese national under the age of 23, then the residence permit issued to them should also include a clear provision that they are entitled to access to employment and exempted from the single-permit process applied to labour migrants.
High risk jurisdictions
Camilleri added that a list of third countries considered high risk from a security, public policy, or public health point of view will be created, and that applications for low-skilled employment of nationals from countries on this list shall not be accepted. He added that this does not apply retroactively, meaning workers from these countries already in Malta will not be impacted.
In order to encourage employee retention and dissuade turnover, one of the recommendations in the policy is to double the fee for first-time applications, from €300 to €600, while at the same time decreasing the fee for the renewal of a single permit to €150 annually.
Another recommendation listed is to create a “register of exemplary employers” and implement longer renewal periods for such employers. Camilleri said that a register will be created for employers who wish to hire TCNs and meet certain criteria, and that once registered these employers would enjoy a streamlined labour marketing testing process resulting in an improved efficiency of the application procedure. He continued that employees working for employers in the register would be eligible for a renewal period of more than two years and up to four years.
Camilleri said that a study will be conducted to determine the salary levels across skilled occupations, which he said will serve as a basis for establishing occupation-specific salary thresholds. He stated that employers would be expected to pay TCNs a salary which reflects the market wage for their occupation. The labour migration policy document indicates that the aim of this measure is so that such salary thresholds ensure fair remuneration for TCNs while also avoiding the use of migration to undercut the domestic workforce. It added that this initiative would also promote competitiveness and support the attraction of high-skilled workers.
Combatting human trafficking
The Home Affairs Minister said that part of the aims of the labour migration policy is to combat human trafficking, and so one of the recommendations is for TCNs who are recognised as victims of human trafficking and are applying for a residence permit to be exempted from the application fee, as well as making it so their residence permit is extended to one year rather than the current six months.
With the aim of strengthening the vacancy requirement and making it so that employers prioritise the recruitment of individuals already in the domestic workforce, the labour migration policy document indicates that prior to applying for the hiring of new TCNs, employers must first issue a vacancy that allows sufficient time for Maltese, EEA, Swiss nationals, or TCNs already in the Maltese labour market to apply for the position. It added that if an employer receives applications from such individuals and rejects them, then they must provide a reason why, after which Jobsplus has the authority to evaluate the reasons and refuse the employer’s application to hire new TCNs if the reasons provided are deemed unsatisfactory. Occupations that fall under the health sector or care of persons with disability or the elderly are fully exempt, as well as student workers and students at the Insitute of Tourism Studies and other higher institutions recognised by Jobsplus, which require work placement as part of studies. Additionally, applications recommended and endorsed by Malta Enterprise may also be fully exempt.
One of the recommendations is for renewal verification, meaning that renewals will be contingent upon verification that the working conditions are being maintained as stipulated in the work contract at the time of the single permit application approval. Furthermore, Jobsplus would be able to request confirmation that the working conditions are being met by requiring employers to present bank statements and tax declarations for the TCNs whose application is due for approval.
Each applicant will be subject to an independent suitability check, with the documentation required including CVs, qualifications, and references. Knowledge of English or Maltese will also be required. With that said, the recommendation also includes that for low-skilled occupations, the declaration of suitability form is to be maintained and the aforementioned conditions shall not apply, except for evidence of proficiency in English or Maltese.
Camilleri stated that a skilled-occupation list has been developed, which he continued will be utilized to streamline certain application processes for skilled occupations. He added that the list is based on ISCO classifications 1-3 and will be constantly updated and aligned with Malta’s skills strategy. This measure is intended to prioritise the recruitment of high-skilled or qualification individuals.
The policy includes a recommendation for workforce application limits, meaning that employers would be eligible to apply for additional TCNs based on a fixed percentage of their current total workforce. The recommendation continues that this will be measured as the workforce at the end of the 12-month period preceding the application for TCNs, and that any terminations within those 12 months will be deducted from the maximum allowed applications. Having said that, the recommendation states that this does not apply to any engagements of Maltese and EU nationals, and that the specific percentage is determined by the size of the organisation. Micro firms of 1 to 9 employees shall be eligible for a level of employment which does not exceed 200% of their workforce at the end of the 12-month period, while small firms of 10 to 50 employees could not exceed 100%, medium firms of 51-249 employees could not exceed 50%, and large firms of over 250 employees could not exceed 25%.
Another recommendation is that first employment should be of Maltese or EU nationality, “or any other TCN who enjoys equal treatment as Maltese or EU nationals”. The recommendation indicates that Micro firms shall first employ 2 full-time employees of the aforementioned nature prior to filing applications for TCNs. Small firms shall first employ 4 such employees, medium firms shall first employ 20, and large firms shall first employ 40.
Percentage of TCN’s employed
The labour migration policy document also states that employers with a share of TCNs that exceeds 80% of their current workforce will be viewed unfavourably and will be subject to enhanced labour market needs tests. It also states that newly registered businesses whose ownership does not include Maltese or EU nationals or long-term residents will be excluded from applying for TCNs.
Some exceptions for the workforce application limits, first employment requirements, or limitations on newly registered businesses may be accepted, including through the advice of Malta Enterprise.
Camilleri remarked that Jobsplus will continue to adopt evidence-based methodologies to analyse the labour market, identifying both overall and sector-specific shortages and surpluses. If saturation is confirmed, Jobsplus could introduce quotas or even temporary moratoria on hiring for occupations where there is an excess supply of labour.
Another recommendation included in the policy is for TCNs whose employment is terminated to be given a 60-day grace period to find employment again. The aim of this measure is to prioritise the retention of existing skilled individuals already in Malta by providing adequate time for TCNs who lose their jobs to secure new employment in the country.
Malta used to be a country of migration – Abela
The Prime Minister remarked that prior to Malta becoming a republic, it was a “country of migration”, rather than immigration. He said that early Maltese governments even had a Minister for Migration who would help Maltese and Gozitan citizens migrate to other countries in search of opportunities.
Today, he said, instead of Maltese having to travel for work, there is so much labour in Malta that they can find opportunities here while foreigners instead travel to Malta for work as a result of the country’s strong economy. Abela commented that the narrative about youths leaving Malta is false, and added that statistics show that those who travel are returning to the country each year.
He referred to the labour migration policy as “an ambitious document for consultation”, and continued that the government is working at an advanced stage for Malta Vision 2050, which he said is another crucial political document intended to bring Malta to “the next level”.
Abela said that the government wants to ensure that those employers who are bringing in TCNs first seek workers in Malta, and that if there is then a need for foreign workers, the government wants to ensure that there is no abuse. “Permission will only be given where it is needed,” he stated, continuing that employers who do not adhere to employment laws and regulations will not be allowed to bring in workers.
The Prime Minister remarked that the labour migration policy is not intended to shackle the work of businesses, and added that the government wants to keep driving the country’s market towards higher skills. “The policy we are bringing forward today is only the beginning of the reforms… Together, want to keep working towards a country of quality.”
