Stronger enforcement of labour laws necessary to create level playing field in job market, says The Malta Chamber

The Malta Chamber has called on the Maltese Government to address abuses, enforce laws and ensure transparency in the procedures surrounding the approval of work permits for nationals of countries outside the European Union.

So-called TCNs (which stands for Third Country Nationals) are critical to the daily work of several key sectors, including healthcare, elderly care, tourism, manufacturing, tech and financial services, all of which suffer from a shortage of capable labour within the local job market.

“This reliance underscores the importance of a strategic workforce plan that addresses these shortages, ensuring a balance between human resource needs and the country’s capacity to accommodate them sustainably,” said The Malta Chamber in a statement released on Wednesday (today) morning.

The organisation therefore emphasised “the necessity of employing TCNs only where there is a demonstrable need within the labour market, and similarly, the employment in jobs directly or indirectly associated with the Government should be justified by genuine need.”

The latter point has long been a bone of contention for The Malta Chamber. Together with the Malta Employers’ Association, it has been vociferous in its complaints that the public sector is poaching people from private employment, creating a dynamic of unfair competition in the local job market.

The Chamber of Commerce’s comments come after the Government tightened its criteria for work permit approvals, with hundreds of migrant workers reporting that their renewal application was refused, forcing them to leave the country.

“The Malta Chamber condemns the unethical practices observed in certain businesses, which exploit TCN workers,” read the organisation’s statement.

“Recent investigations have uncovered instances where companies have illegally employed TCNs, engaged in contract violations, and subjected workers to poor working conditions. Such practices not only violate the rights of the workers but also create unfair competition for businesses that adhere to legal and ethical standards.”

On Tuesday, Times of Malta reported that several agencies employing TCNs as cab drivers and food delivery couriers got raided by Jobsplus officials looking for evidence of illegal labour practices.

The Malta Chamber also pointed to “news reports of exploitation, such as workers being charged exorbitant fees by recruitment agencies or being subjected to underpayment and inadequate working conditions.

“For instance, a number of companies have been found to employ TCNs without proper contracts, leading to instances where workers were paid less than the minimum wage or were denied basic rights and protection.”

The lobby group therefore called for a clear distinction to be made between ethical businesses which comply with employment laws and standards, and those that exploit legal loopholes to the detriment of workers and fair competition.

It argued that the role of entities like Jobsplus, Identità and the Department of Industrial and Employment Relations (DIER), which are collectively responsible for the issue of work permits, regulation and monitoring of employment practices, is crucial in identifying and addressing these abuses.

“We urge continued vigilance and robust action to ensure that all businesses operate on a level playing field, respecting both legal standards and the rights of workers.”

In light of these issues, The Malta Chamber is inviting the Government to enhance transparency by releasing the data from the recent skills survey, which identifies the specific needs of the country’s labour market.

“Additionally, we advocate for stronger enforcement of labour laws and increased dialogue with stakeholders, including the Malta Council for Economic and Social Development (MCESD), to ensure that the implementation of policies is fair and effective. This collaborative approach is essential to create a sustainable and equitable environment for all sectors of the economy.”