Address abuse, enforce laws and enhance transparency on TCNs, Chamber tells government

Government needs to address abuse, enforce laws and ensure transparency surrounding the employment of third-country nationals (TCNs), the Malta Chamber has said.

“The Malta Chamber emphasizes 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,” it said on Wednesday.

It said any key sectors in Malta, including healthcare, elderly care, tourism, manufacturing, tech and financial services rely heavily on migrant workers due to a significant shortage in the local workforce.

“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,” the chamber said.

The chamber also condemned unethical practices in businesses which exploit TCNs. “Such practices not only violate the rights of the workers but also create unfair competition for businesses that adhere to legal and ethical standards.”

“There have been 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 chamber said.

It 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.

“The role of entities like Jobsplus, Identita’ 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,” the chamber said.

It invited government to enhance transparency by releasing 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,” the statement concluded.[

Parliamentary secretary for social dialogue in full agreement with Chamber's statement

Later on Wednesday, parliamentary secretary for social dialogue Andy Ellul took note of the Chamber's statement, expressing his agreement that no worker in Malta should be exploited.

"Although the authorities are enforcing regulations and doing their utmost to protect workers' rights, and despite the level playing field created among temping agencies through the recently introduced legislation, I invite the Chamber of Commerce to discuss, among other topics, the mandatory union membership concept at the next MCESD meeting."