From the 1st of June 2024 the Employment Agencies Regulations of 2023 (L.N. 270 of 2023) came into full effect. These regulations require all businesses operating an employment agency in Malta to hold a valid license issued by the Department of Industrial and Employment Relations (DIER).
What is it?
This license is a formal authorisation issued by DIER to eligible businesses following a successful application. It is valid for 2 years, provided that all regulatory conditions continue to be met throughout that period.
Who needs a license?
This license is required for
- Recruitment Agencies
- Agencies that engage in matching people looking for employment with job opportunities.
- Temping Agencies
- Agencies that assign temporary workers to third parties on a regular or irregular basis to work there temporarily under the supervision, direction and control of the client.
- Outsourcing Agencies
- Agencies who assign workers to third parties ant regular or irregular basis to work under the supervision of the agency itself.
Who can apply?
The applicant must be a sole-trader (over the age of 18) or a company operating in Malta. Each agency requires a competent person who is employed full time as a manager, this person can be the owner themselves or an employee.
Who can be a competent person?
A competent must meet the following criteria:
– Be a Maltese citizen or entitled to equal treatment to Maltese citizens
– Be a resident in Malta
– Have either
- 6 years of experience in human resource management or at
- 3 years of experience and in possession of a degree in a relevant field
– Be of good moral character, supported by a reference letter
What Does the Application Involve?
The application process requires the preparation of necessary documentation for both the sole trader/company and the competent person.
These include but are not limited to;
– Compliance certificates
– A reference letter for the competent person
– A permit and architect’s declaration confirming the premises is suitable (Class 4A use)
– Employee lists and payroll reports
– Proof of public notification (a notice displayed at the premises and published in two daily newspapers)
– A bank guarantee to ensure ongoing compliance
– A non-refundable application fee of €3,000
Refusal/revocation of licences
The license can be refused or revoked by the Director due to non-compliance or failure of the vetting process.
The licensing process although extensive is crucial for the successful and legal operations of an employment agency. Failure to comply with such laws can result in fines up to €30,000
How can we help?
If you are in the process of setting up an employment agency, we can help you acquire your license. For more information, kindly contact Apex Business Services on 21559999 or info@jcordina-andco.com .
