Temping agency lobby opposes capping foreign workers

Malta’s Association for Temping and Outsourcing Agencies (AFTA) has spoken against measures in the government’s labour migration policy.

The AFTA emphasised the need to address employers who are exploiting the current system rather than implementing restrictive measures that could hinder business needs.

Earlier this month, government launched its labour migration policy, as feedback on the document is open until 9 February. The government intends to implement the policy over the coming 12 months in a staggered approach.

The underlying basis of the policy is to create stability by reducing the turnover rate of foreign workers and curb abuse of workers.

In a 50-page document, the AFTA strongly opposed the proposed caps on the percentage of third-country nationals (TCNs) a company can employ, among other issues it had with the proposed policy. 

The AFTA argued the cap would stifle growth, reduce competitiveness, and disproportionately affect industries that rely heavily on TCNs. 

The association added that the policy’s aim to allow firms direct access to TCN application processes, bypassing temping agencies, is seen by the AFTA as disregarding the flexibility and seasonality required by many businesses. 

Instead, the association advocated for ensuring that all companies using TCNs do so through licensed agencies.

Another contested measure is the requirement for employers to engage a minimum number of Maltese or EU nationals before employing TCNs. The association argued this fails to reflect the realities of Malta’s labour market and the evolving nature of its workforce, potentially placing undue pressure on businesses in industries facing a local skills shortage.

While critical of many measures, AFTA supports some elements of the proposed policy. The association backed efforts to block employers with high turnover rates from hiring more TCNs, provided the rules target rogue actors specifically. 

The AFTA also endorses extending the grace period for unemployed TCNs from 10 to 60 days and sees value in integration courses for TCNs before their arrival in Malta, as well as training and upskilling initiatives for foreign workers.

AFTA expressed reservations about the proposed €600 application fee for employing foreign workers, suggesting it should be reduced for industries experiencing labour shortages.