Introduction to Malta’s Employment Law: Labour Migration Challenges and Policies
Due to its unique geographic location at the crossroads of Europe, North Africa, and the Middle East, Malta has long been regarded as a migration hub. Its strategic position in the Mediterranean, coupled with its membership in the European Union, makes the country an attractive entry point for people seeking new opportunities.
In recent years, Malta’s labour market has seen a sharp increase in non-Maltese workers, who have become the largest contributor to the growth of the country’s labour force. Non-Maltese employees have also played a significant role in overall economic performance, filling positions across almost all sectors.
However, despite these contributions, the Maltese community has historically been seen as relatively homogenous and resistant to foreign integration, particularly when it comes to third-country nationals (TCNs) — migrants from outside the EU, EEA, and Switzerland. While EU citizens often benefit from free movement rights and easier access to the Maltese labour market, TCNs tend to face greater scrutiny, administrative hurdles, and social barriers in their pursuit of employment.
This tension between Malta’s status as a migration hub and the challenges faced by TCNs in securing work raises important questions. To what extent do TCNs experience difficulties in accessing employment? Are these barriers legal, cultural, or economic in nature? And how can Malta balance the needs of its labour market with fair and equal treatment of all workers, regardless of nationality?
Union Citizens vs TCNs
Since Malta’s accession in the European Union, and also in line with the European Union Act, Chapter 460 of the Laws of Malta, union citizens enjoy the right to enter, reside, and work in Malta under the free movement of persons. They are entitled to equal treatment with Maltese nationals, and these rights may extend to their family members, even if those family members are not EU nationals, subject to certain conditions.
Union citizens taking up employment in Malta do not require an employment licence or work permit, as they have the right to work freely. However, if their stay exceeds three months, they must apply for an e-Residence card through Identità. Employers must also register their employment with Jobsplus. After five years of continuous legal residence, EU citizens and their family members may apply for permanent residence.
The process is considerably more cumbersome when it comes to TCNs. Unless they are the spouse or family member of an EU citizen, TCNs must follow the detailed procedure set out in Chapter 217 of the Laws of Malta, the Immigration Act.
To take up employment in Malta, TCNs must apply for a Single Work Permit, which application can be submitted either:
- while still abroad,
- after completing studies in Malta, or
- if already holding a valid residence card in Malta.
Unlike EU citizens, TCN applications are vetted by both Jobsplus and the Principal Immigration Officer, who retain a high degree of discretion in deciding whether to issue the permit. Crucially, the application cannot be made independently by the prospective employee – it must be submitted by the employer, and only after a job offer has already been secured. Moreover, unlike EU citizens, TCNs must provide documentation which, inter alia, includes a valid health insurance policy, health screening results and a valid rental agreement, together with Housing Authority Approval.
Once all documents are vetted and approved, the TCN is granted a residence card. This card is valid for only one year and must be renewed annually, creating an ongoing administrative burden to maintain employment status. If the TCN resigns or is dismissed, they have 30 days (previously 10) to secure new employment. Like Union citizens, a TCN who has lived legally and continuously in Malta for five years may apply for long-term resident status.
Challenges Faced by TCNs in the Workplace
In addition to administrative barriers, TCNs also experience a range of other challenges whilst in employment:
Barriers to Accessing Employment Opportunities
Many companies in Malta are small businesses, that often recruit through informal networks rather than official channels. This hiring practice, combined with TCNs’ limited social capital and professional networks, makes it extremely difficult for them to secure employment.
Furthermore, for a TCN to come to Malta for work, they must already have a job offer in hand – posing a major hurdle, as they cannot meet potential employers in person before obtaining the necessary work permits.
Racial and nationality-based discrimination also plays a role. frequently prefer local or EU candidates over TCNs, while language barriers further compound the problem. Limited proficiency in Maltese or English can discourage employers from hiring TCNs, especially those who are irregular migrants or lack access to language training.
Insufficient Training and Professional Development Opportunities
Many TCNs are either not offered training opportunities or are expected to finance their own training. As a result, they often find themselves in a state of career stagnation. Despite many holding post-secondary or tertiary qualifications, they are often channelled into low-skilled roles requiring little or no training. Such positions offer limited prospects for advancement, leaving TCNs overqualified yet underutilised.
Employers are often reluctant to invest in training foreign workers, perceiving their stay in Malta as temporary. This hesitation persists even when TCNs possess valuable skills that could benefit the organisation long-term.
Consequently, TCNs become trapped in a cycle where their qualifications and potential are overlooked, restricting their professional growth and long-term career stability.
Higher Risk of Poverty Despite Long Hours
With the exception of migrants who work in high-tech and high value-added sectors, such as iGaming and IT, migrants are much more at risk of poverty than Maltese workers, despite working longer hours (most often, willingly). This is since not only is their wage, more often than not, lower than that which is paid to the Maltese counterparts, but most often they would be the sole breadwinner of the family and are required to send money back to their home country.
Greater Health and Safety Risks
One of the most prominent sectors employing TCNs in Malta is the construction industry. While this sector offers a steady demand for labour, it also exposes workers to significant occupational risks. A major source of danger stems from the lack of adequate training and supervision. TCNs are often assigned tasks that exceed their skills or competences, and these risks are compounded by language barriers, which can hinder effective communication of safety instructions. This combination not only jeopardises their own health but can also create broader safety risks on site.
Complex Relationships with Superiors and Colleagues
Beyond administrative and structural barriers, many TCNs encounter difficulties in their day-to-day interactions with superiors and colleagues. Reports highlight cases where foreign workers are treated unfairly or unequally compared to their Maltese or EU counterparts. Discrimination – whether explicit or subtle – remains a recurring issue. TCNs may experience bias based on ethnicity, nationality, or cultural differences, which can affect not only their working conditions but also their sense of belonging in the workplace. Such treatment often results in low morale, reduced productivity, and higher turnover, making it harder for TCNs to build stable careers in Malta.
Low Levels of Unionisation
Many TCNs remain outside the structures of trade unions and are not covered by collective agreements. This lack of representation leaves them more vulnerable to unfair treatment, precarious working conditions, and exploitation.
One of the main reasons for this low level of unionisation is the segmented nature of the labour market. TCNs are often concentrated either at the very top or, more commonly, at the very bottom of the employment hierarchy. Workers in high-level professional roles may see little need for union membership, while those in low-skilled or insecure jobs are often hesitant or unable to join.
The situation is further complicated in the private sector, which is generally less unionised than the public sector. In addition, many TCNs at the bottom of the labour market are employed in the informal economy, where undeclared work makes trade union membership practically impossible.
The result is that large numbers of TCNs are left without the collective bargaining power that could help them negotiate better wages, safer working conditions, or fairer treatment.
The Labour Migration Policy
Despite the many challenges faced by TCNs, strides in the right direction are being made by the Maltese Government. On 8 January 2025, the Government launched the new Malta Labour Migration Policy, which officially came into effect on 1 August 2025. This policy marks a significant step in strengthening Malta’s approach to labour migration by placing the worker at the centre of the system.
The policy seeks to strike a fair balance: on the one hand, addressing the genuine needs of Malta’s labour market for foreign workers, and on the other, ensuring that TCNs’ rights and protections are safeguarded.
One of the most notable developments under this policy is the extension of the grace period for TCN workers whose employment is terminated. TCNs are now granted 30 days to remain in Malta and seek new employment. There is also a possible extension of an additional 30 days, subject to proof of financial self-sufficiency.
Conclusion
The experiences of third-country nationals in Malta reveal a complex reality: while they play a vital role in sustaining the country’s economy, they often face significant obstacles. These challenges have too often left TCNs vulnerable to exploitation, underemployment, and exclusion.
The launch of the Malta Labour Migration Policy 2025 signals a promising shift. Still, effective enforcement, employer accountability, and genuine efforts at integration are essential to ensure that the promises of policy translate into meaningful change. Only by addressing these gaps can Malta build a labour market that is not only efficient but also fair, inclusive, and sustainable.
This article is for information purposes only and should not be construed as legal advice. The information provided reflects the law as it stands on the blog’s publishing date. For the most updated version or advice tailored to your specific circumstances, you are strongly encouraged to consult a lawyer.
Article and research done by Ms Caitlin Turner, LL.B. (Hons) (Melit.), currently reading a Master of Advocacy at University of Malta.
Sciberras Advocates founded by Dr Adrian Sciberras, is a law firm based in Malta. The firm prides itself to be multi-disciplinary, innovative and flexible in order to meet the changing times and any challenges in the local and international legal scenario. No matter what private or corporate complex demands are called for, Sciberras Advocates offers practical and cost-effective legal solutions to achieve your desired results. You may reach Sciberras Advocates by phone on +35627795222 or via email on [email protected].
