MINIMUM WAGE AND COLLECTIVE BARGAINING REGULATIONS

SUBSIDIARY LEGISLATION 452.135

MINIMUM WAGE AND COLLECTIVE BARGAINING

REGULATIONS

6th December, 2024

LEGAL NOTICE 332 of 2024.

The title of these regulations is the Minimum Wage and

Collective Bargaining Regulations.

(1)

The scope of these regulations is to transpose the

relevant provisions of Directive (EU) 2022/2041 of the European

Parliament and of the Council of 19 October 2022 on adequate

minimum wages in the European Union.

(2)

These regulations apply to all workers who have a

contract of employment or employment relationship within the

territory of Malta as defined by law, collective agreements, or practice

in force, with consideration to the case-law, including that of the Court

of Justice of the European Union

Provided that these regulations shall not apply to the

minimum wage of seafarers provided for in rule 51 of the Merchant

Shipping (Maritime Labour Convention) Rules.

(3)

These regulations shall be without prejudice to the full

respect for the autonomy of the social partners, as well as their right to

negotiate and conclude collective agreements.

(1)

In these regulations, unless the context otherwise

requires

"Act" means the Employment and Industrial Relations

Act;

"collective agreement" means an agreement entered into

between an employer, or one (1) or more organisations of

employers, and one (1) or more organisations of workers

regarding conditions of employment in accordance with the

provisions of the Act and the regulations made thereunder;

"collective bargaining" means all negotiations which take

place according to national law and practice between an

employer, a group of employers or one (1) or more employers’

organisations on the one hand, and one (1) or more trade unions

on the other, for determining working conditions and terms of

employment;

"collective bargaining coverage" means the share of

workers at national level to whom a collective agreement

applies, calculated as the ratio of the number of workers

covered by collective agreements to the number of workers

whose working conditions may be regulated by collective

agreements in accordance with national law and practice;

"Director" shall have the same meaning as assigned to it

in the Act;

"employer" shall have the same meaning as assigned to it

in the Act;

"minimum wage" means the minimum remuneration

established by the laws of Malta or collective agreements that an

employer, including in the public sector, is required to pay to the

workers for the work performed during a particular period;

"Minister" shall have the same meaning as assigned to it

in the Act;

"statutory minimum wage" means a minimum wage

established by law or other binding legal provisions, with the

exclusion of minimum wages established by collective

agreements that have been declared universally applicable

without any discretion of the declaring authority as to the

content of the applicable provisions;

"trade union" shall have the same meaning as assigned to

it in the Act;

"Tribunal" shall have the same meaning as assigned to it

in the Act;

"worker" shall have the same meaning as assigned to it in

the Act.

(2)

Subject to the provisions of sub-regulation (1), the terms

and expressions used in these regulations shall, unless the context

otherwise requires have the meaning assigned to them in the Act.

(1)

With the aim of increasing collective bargaining

coverage and facilitating the exercise of the right to collective

bargaining on wage-setting, the Minister, with the involvement of the

social partners, in accordance with national law and practice shall

(a)

promote the building and strengthening of the

capacity of the social partners to engage in collective

bargaining on wage-setting, in particular at sector or cross-

industry level;

(b)

encourage constructive, meaningful and informed

negotiations on wages between the social partners, in an equal

manner, where the employers and trade unions have access to

appropriate information in order to carry out their functions in

respect of collective bargaining on wage-setting;

(c)

take measures, as appropriate, to protect the

exercise of the right to collective bargaining on wage-setting

and to protect workers and trade union representatives from

acts that discriminate against them in respect of their

employment on the grounds that they participate or intend to

participate in collective bargaining on wage-setting;

(d)

take measures, as appropriate, to protect trade

unions and employers’ organisations participating or intending

to participate in collective bargaining against any acts of

interference by each other or each other’s agents or members in

their establishment, functioning or administration

Provided that if the collective bargaining coverage

rate is less than a threshold of eighty percent (80%), the

Minister shall provide for a framework of enabling conditions

for collective bargaining, either by law after consulting the

social partners or by agreement with them

Provided further that an action plan shall be

established after consulting the social partners or by agreement

with the social partners or, following a joint request by the

social partners, as agreed between the social partners

Provided further that the action plan shall be

regularly reviewed at intervals which are not longer than five

(5) years

Provided further that the action plan shall be made

public once it is established or updated.

(2)

The action plan shall contain a timeline and targets to

address the concern of progressively increasing the rate of collective

bargaining coverage, in full respect for the autonomy of the social

partners.

(1)

A trade union recognised in accordance with the

Recognition of Trade Unions Regulations shall be entitled to request

negotiations with an employer for the purpose of entering into, or

revising a collective agreement.

(2)

Any request for negotiation shall be formally submitted

in writing.

(3)

Upon receiving the request for negotiation, the employer

shall within thirty (30) days, communicate in writing the acceptance of

the request for negotiation.

(4)

Upon acceptance of such negotiation request, the trade

union shall promptly communicate a written agenda outlining the main

representations to be made in the relevant negotiation meetings, along

with the relevant attendees.

(5)

Throughout all stages of negotiations, detailed minutes

shall be duly recorded and circulated amongst all attendees

Provided that when an agreement is reached, the minutes

registering such agreement shall be duly approved and signed.

(1)

The Director shall take the appropriate measures

to ensure that the necessary data to determine the rate of collective

bargaining coverage shall be gathered at all times.

(2)

Without prejudice to articles 56 to 59 of the Act, both

inclusive, every trade union and employers’ association shall keep an

up-to-date record of the following

(a) number of members of the trade union or

employers’ association;

(b)

copies of collective agreements;

(c) information on the industries or sectors covered

by the collective agreements provided for in paragraph (b);

(d) the duration and the expiration dates of the

collective agreements provided for in paragraph (b);

(e) the percentage of workers represented by the trade

union or employers by an employer’s association, for every

company and, or entity; and

(f)

records of any disputes related to collective

bargaining.

(3)

If a trade union or an employers’ association refuses or

wilfully neglects to perform a duty imposed on it by, or under

regulation 6(2), the trade union or employers’ association shall be

guilty of an offence and shall be liable on conviction to a fine (multa)

not exceeding one thousand and one hundred and sixty-four euro and

sixty-nine cents (1,164.69).

(4)

Whenever requested by the Director, a trade union or an

employers’ association shall transmit within the timeframe as

prescribed by the Director from date of request, any data or

combinations of data listed in regulation 6(2) in the manner as

prescribed by the Director.

(5)

Any trade union or employers’ association may request

an extension of the period within which to submit data as requested by

the Director under sub-regulation (4). The Director, upon receipt of

this request for such an extension, at his discretion and after evaluating

the reasons submitted by the trade union or employers’ association for

such an extension, may extend the time as is reasonably necessary. The

trade union or employers’ association requested to give data

mentioned in sub-regulation (4) shall submit the information requested

within the extended timeframe.

(6)

(a)

The Director or any authorized inspector

appointed in accordance with article 43(1) of the Act, or any other

person authorized by the Director, shall have the right to request and

obtain from any person, natural or legal, including employers, trade

unions, associations or other entities established by law, any data or

information pertaining to the employment status of a worker, as

necessary for the purpose of ensuring compliance with these

regulations, the Act and any other subsidiary legislation made

thereunder.

(b)

Any person in receipt of a request under this regulation

shall promptly provide the requested data or information to the

Director, authorized inspector, or any other officer authorised by the

Director within the specified timeframe, in the manner prescribed by

the Director

Provided that upon receipt of request for data in

pursuance of paragraph (a), sub-regulation (5) shall apply mutatis

mutandis.

(7)

In all data requests made in accordance with regulation

6(4) and (6), the Director shall ensure the confidentiality and

appropriate use of all employment-related data obtained under this

regulation, in accordance with data protection laws and regulations.

(1)

The Director, any inspector appointed in

accordance with article 43(1) of the Act and any officer duly

authorised by the Director, shall be empowered with the right to

examine the books and records, including itemised payslips, at any

time, in accordance with the Act and the regulations made thereunder,

or to request any information which in the opinion of the Director or

inspector is reasonably required for ensuring that these regulations are

being complied with.

(2)

Without prejudice to articles 45 to 47A of the Act, both

inclusive, a worker who has been paid wages less than the rate

applicable according to the National Minimum Wage Standard Order

and Wage Regulation Orders in force shall have the right to submit a

complaint to the Director who shall investigate the matter and order

the employer to pay the worker wages in conformity with the National

Minimum Wage Standard Order and Wage Regulation Orders in force.

(3)

The employer found to be in breach of sub-regulation (2)

shall be liable to the punishments provided for in article 45 of the Act.

(4)

The burden of proof to prove the subsistence of any of

the material facts referred to in these regulations shall, in all cases, be

borne by the employer allegedly in breach of the provisions of sub-

regulation (2).

It shall be unlawful to victimise or to subject any worker

or any workers’ representative to any adverse treatment or for any

worker or any workers’ representative to suffer any adverse

consequences resulting from a complaint lodged with the employer, or

resulting from any proceedings initiated with the aim of enforcing

compliance with the rights provided for in these regulations.

(1)

A worker who is dismissed shall be regarded for

the purposes of these regulations as having been unfairly dismissed if

the reason for the dismissal of the worker is that the worker refused or

proposed to refuse to comply with an order which the employer

imposed or proposed to impose, in contravention of these regulations,

or refused or proposed to refuse to renounce to a right conferred on

him by these regulations or, in any other manner, exercised his rights

provided for in these regulations.

(2)

A worker who considers that he has been dismissed, or

has been subjected to measures with equivalent effect, on the grounds

that he has exercised the rights provided for in these regulations, may

request the employer to provide duly substantiated grounds for the

dismissal or the equivalent measures. The employer shall provide such

reasons in writing.

(3)

When a worker establishes before the Tribunal facts from

which it may be presumed that there has been such an unfair dismissal

or an equivalent measure, the employer shall provide evidence that the

dismissal was based on grounds other than those referred to in sub-

regulation (1).

(4)

In cases referred to in sub-regulations (1) and (2), a

worker may submit a complaint to the Tribunal established in terms of

article 73 of the Act.