Earlier this year, the Department of Industrial and Employment Relations (DIER) announced new regulations for employment agencies, which will take effect on 1st June 2024. These changes impact all businesses involved in recruitment services, temporary work services, and outsourcing services (sub-contracting).
The main objectives of the new regulations are to standardise the conditions of employment agencies, establish clear procedures, enforce license conditions, and ensure that qualified and competent individuals are committed to this sector. The regulations came into force on 1st April 2024 and will apply to all employees who have entered into a contract of employment with a temporary work agency or an outsourcing agency.
Licenses can be granted for recruitment services or activities related to temporary work and outsourcing agencies. If an applicant intends to conduct both recruitment and temporary/outsourcing services, they must obtain two separate licenses. Individuals must be at least 25 years old to qualify for a license to operate an employment agency.
Temporary Work and Outsourcing Services Explained
Temporary Work Services: This involves providing workers to another company. The company assigns tasks to these workers and oversees their work.
Outsourcing Services: This involves providing workers to another company but under the supervision and control of the outsourcing agency. The agency manages the workers and their tasks, even though they work for a third party.
However, the regulations do not apply to:
Employers who recruit for their own undertakings.
Recruitment activities on behalf of employers clearly specified in job advertisements.
Outsourcing agencies providing professional services by warranted professionals, technical services for the installation, maintenance, and repair of equipment and machinery, and surveying services related to machinery and vessels.
Jobsplus when performing the functions of an employment agency.
Identita' (previously known as Identity Malta) will not be in a position to process any applications, unless the business is in possession of a valid licence issued by the DIER in terms of the above mentioned legislation.
If your business is affected by these regulations and you need assistance with the application process, please feel free to reach out to us.
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