Employment Law and Industrial Relations Malta

Malta is a small island country that of late has been flourishing in terms of business. To have a successful establishment, one must be aware of the rules and regulations pertaining to business in the particular region. The employment law in Malta is stringent and must be strictly adhered to.  EIRA or The Employment and Industrial Relations Act is the main reference source for the employment law.  Not just employment law, but EIRA provides for a legal framework that even regulates industrial relations in Libya. Another valuable reference is Occupational Health and Safety Authority Act which ensures well-being of the company’s employees.

The employment law in Malta applies to all types of employees whether they are self employed or not.  An employee can also be categorised as full timer or a part timer, but in that case also, the law will be applicable while salary might change as per the working hours. The employment contract for the employee must be either written or verbally put forth for the law to be applicable. In case a company wishes to terminate the service of a particular employee, the employer has full power to decide whether to terminate him with immediate effect or after completing the notice period as per the employment law in Malta.

Industrial relation in Malta is nothing but a coordination in the industry that is generated as a result of diversified approaches of both management and employees with respect to the management of the industry. It takes into account the wellbeing of the entire management not particularly only the employees or management. An industry can be a primary one or the secondar one. The major objectives of the Industrial relation in Malta are listed below:

·         Maintaining well-being of both management and employee

·         Improvement the overall economic condition of the employees

·         Nationalization of the industry

·         To improve efficiency and productivity by safeguarding the interest of both labourers and management

·         To lower the number of absentees, strikes, lockouts etc. by improving the working condition of the working class

Overall, the main of the industrial relation in Malta  is to ensure that labourers are treated like a vital part of the organization (which they are) and they must be given a pivotal role in decision making as well. This will help in developing a cordial relation with the management which will ultimately improve the productivity. Both Malta and Libya are constantly flourishing areas where start-ups found a favourable condition for growth and revenue as well. Hence companies like EMD exploit this nature of the country to provide quality reliable services to their clients. Over years, there has been some relevant modifications in the Maltese employment and labour law mainly due to constant evolution in the business domain. The law regulates the working procedures in any kind of business where there is an employer and many employees working under his supervision. Union and ither labour bodies work in close knit with the management to maintain a healthy positive industrial relation in Libya as well as in Malta.

Online Gaming License and Industry in Malta

Malta iGaming industry is a vast industry which is growing with every passing day. We all loves to play games, and if that is available in online mode, then the child is us will be more than happy. With digitalization in every sector, gaming industry Malta too has been actively following the path.  But to get digital or online, it is important to acquire a valid Malta online gaming license.  EMD is one such establishment that provides ample support in getting the formalities of licensing done.  It was in late 2000 that the Malta online gaming industry gained wide popularity. Malta too has been an incredible part of the gaming industry with many leading developers.

iGaming industry is vast and there are numerous products to choose from. A gamer can choose from different categories like casino games, betting games, esports betting games and many more. It is basically an online platform where bets are placed on the result or outcome of a particular game or event. Going by the data of 2017 released by MGA or Malta Gaming Authority, Malta has around 294 iGaming companies that forms a major part of the Malta iGaming industry. It contributes to around 10 percent of the country’s GDP. This number is pretty good as this gaming industry Malta is not very old and came into picture in the year 2014. Malta online gaming license is a document that is mandatory to conduct betting or online games gambling in online mode. These licenses are granted by special commissions who are responsible to regulate the online gaming process. Malta online gaming has existence until the licence is valid and without that there is no legal ground for the business and hence there will no investors.

Under Malta iGaming industry, there are a wide range of games available which can be played via distance communication modes like internet, mobile, digital TV etc. All these are operated via means of Malta online gaming licence network. Malta EMD offers various attractions that pressurises I Gaming companies to play under its legal jurisdiction. Malta being a part of European Union, is one of the pioneers to regulate remote gaming networks. Malta online gaming industry has a significance of having well-regulated jurisdiction which ensures that interest of both players and operators are well maintained. The entire process of getting licence for regulating gaming industry Malta is very easy and has an objective based approach providing scope for modification in future.

Requirements for getting the iGaming license in Malta

• The developer or operator must be established within EU or EEA
• The applicants must be fit and proper
• The business must be able to provide a demo for business and technical ability that will have capability to manage the iGaming platforms
• It must provide guarantee that the players will be paid on winning and that they have sufficient reserves to maintain the operation

The operator must provide all required documents to MGA for getting the Malta online gaming license.  There is a fee that is applicable while submitting the form along with annual license renewing fee.

The Individual Investor Programme (IIP)

A growing number of wealthy individuals seek to invest and migrate elsewhere due to political and socio-economic instability in their countries, giving another chance to themselves and their families to improve their life in a more stable environment while expanding their business interests.

Malta has seen this opportunity and has created the IIP Programme to attract wealthy high net worth private individuals who are interested in migrating elsewhere by contributing to the growth of the Maltese economy. A yet small country but with a booming economy and a stable political climate, Malta, gives the opportunities through sound and smart investments. Malta has weathered the financial crisis and has maintained economic growth during this challenging time.

The Malta Citizenship by Investment Programme is designed in a way that is intended to expand opportunities and also attracting to Malta those people willing to invest and believing in the potential of such a small island.

The investment required under the IIP Programme takes the form of a monetary contribution to the National Development and Social Fund established by the Malta Government for the purpose of bringing about qualitative improvements in Malta through public interest, social and capital projects, the main applicant is required to contribute at least Eur650,000 to Malta. Applicants are also required to invest at least €150,000 in bonds or shares approved by the Maltese Government and must be kept for at least five years.

Through a rigorous due diligence process, applicants must show that they are in good health and that they wouldn’t be a burden on the Maltese health system, purchase or lease a property and also provide sufficient links to Malta.

The applicant (and dependents) must also be of good repute and must show a good criminal record, and the Maltese authorities would then carry their checks with various other authorities and sources. All citizenship applications under the Malta Individual Investor Programme go through a systematic review and evaluation process. 

An overview of the government fees involved for the Malta Citizenship by Investment Programme would be as follows –

Contributions

Main applicant – €650,000

Spouse – €25,000

Each and every child aged below 18 – €25,000

Each and every dependent unmarried child aged 18-26 – €50,000

Each and every dependent parent aged above 55 – €50,000

Passport Fees

per person – €500

Due Diligence Fees

Main applicant – €7,500

Spouse – €5,000

Each and every child aged 13-17 – €3,000

Each and every dependent unmarried child aged 18-26 – €5,000

Each and every dependent parent aged above 55 – €5,000

Bank Charges

per application – €200

The IIP Programme requires the applicant to be a resident in Malta for a period of at least 12 months.

 

The Malta Gaming Authority’s Eligibility and Competency for Key Function holders

The Malta Gaming Authority’s (MGA) main aim behind the recently introduced policy in respect of eligibility and ongoing competency is in fact to delineate thecriteria that the MGA will consider forappointed Key Persons and individuals still to be appointed to these specific roles. The amendments also brought about an amalgamation of certain Key Functions. The major focus of this newly introduced policy isidentified below:

• Key Persons will be required to fulfil a number of continuous professional development (CPD) hours during each calendar year; for the duration of the Key Function certificate period
• any activity to be considered as CPD must be relevant and verifiable
• fitness and propriety considerations based on Integrity, Honesty and Reputation as well as Competence and Capability
• competency and capability are based on related professional qualifications as well as related experience to the role being appointed to
• Key Function Certificate holders and Authorised Persons must comply to notification of changes in Key Persons’ roles by the established deadlines in 2022. Failure to submitting such notifications, may result in a total revocation of any Key Function Certificate held related to the particular Key Person
• the MGA introduced further guidance in respect of conflict of interest between roles and compatibility of roles

The list below includes the updated Key Function roles for B2C licensees and B2B licensee respectively;

B2C

• CEO
• Gaming Operations including responsibility for finance, administration, risk management and fraud prevention
• Legal Affairs
• Data Protection Officer
• Compliance Officer including responsibility for responsible gaming, player support and marketing & advertising
• Technological Affairs including responsibility for network and information security
• Money Laundering Reporting Officer
• Internal Audit

B2B

• CEO
• Gaming Operations including responsibility for finance, administration and risk management
• Legal Affairs
• Data Protection Officer
• Compliance Officer
• Technological Affairs including responsibility for network and information security
• Internal Audit

For furtherdetails on the above changes contact EMD’s gaming team on gaming@emd.com.mt.

Nomad Residence Permit

The Nomad Residence Permit has recently been introduced for Non-EU nationals who wish to move to Malta temporarily whilst working remotely. This option allows applicants to continue working for a company based abroad whilst legally residing in Malta. The Nomad Residence Permit is designed for digital nomads who can be employed with a company which is based overseas, run their own business or provide freelance services to clients outside of Malta. Applicants who wish to apply for this incentive must be third country nationals who prove that they are able to work remotely. This incentive allows third country nationals to join the already thriving community of European digital nomads in Malta. A Nomad Residence Permit holder may travel within the Schengen Area without the need of a visa as long as the permit is valid.The applications shall be handled by Residency Malta Agency.

Main requirements: 

The following criteria must be met in order to be eligible for this permit:

• Have a contract of work with an employer registered in a foreign country; OR
• Conduct business activities for a company registered in a foreign country and of which applicant is partner/shareholder; OR
•  Offer freelance or consulting services, mostly to clients whose permanent establishments are in a foreign country, and with whom the applicant has contracts.

Applicants must also:

• Hold a valid travel document;
• Have health insurance covering risks in Malta;
• Hold a valid rental agreement or property deed for a property in Malta;
• Pass a background verification check;
• Reach a gross monthly income threshold of €2,700 in addition to a 20% of the median wage for each family member. Family members include:

1. the spouse of the main applicant in a monogamous marriage or in another relationship having the same or a similar status to marriage, including a civil union, domestic partnership, common law marriage, provided that for the purpose of these regulations, the term “spouse” shall be gender neutral, and saving the CEO of Residency Malta Agency’s discretion to authorise, on a case-by-case basis, other relationships having a similar status as aforesaid;
2. a child, including an adopted child, of the main applicant or of his spouse who, at the time of application, is less than eighteen (18) years of age;
3. a child, including an adopted child, of the main applicant or of his spouse, who at the time of application is over eighteen (18) years of age, is not married, and who proves, to the satisfaction of the Agency that at the time of application he is principally dependent on the main applicant.

Submission of Applications

The required documents for the application are collected. The application together with the required supporting documents is submitted to the Agency by email. Instructions to pay the administrative fee of €300 per applicant are received. The Agency will review the application and background checks will be carried out by the authorities. The application should be processed within 30 days following receipt of all required documentation. Once the process is complete, an email will be sent by the Agency. If the application is successful, the applicant will be invited to proceed to Malta following the instructions on the approval letter in order to finalise the application.

Depending on the country of issuance of the applicant’s passport, successful applicants may be issued with a National Visa valid for 90 days – 180 days, depending on their intention of duration of stay. By means of the National Visa, the applicant may enter and reside in Malta for the duration of the Visa issued. Non-EU nationals who do not require a Visa to enter Malta may proceed to Malta immediately after receiving an approval letter by Residency Malta Agency, following guidelines on the mentioned approval letter and as instructed by Central Visa Unit at Identity Malta Agency. A National Visa of 90 days – 180 days may be issued depending on the applicant’s intention of duration of stay.

Should the applicant decide to prolong his stay further than the duration of the Visa issued, he/she may finalise the process of application for a Nomad Residence Permit by submitting in person his/her biometric features and documentation. This must be done in person at the Residency Malta Agency’s offices.

Apart from applicable professional fees, the below government costs apply:

Administrative fee (main applicant) – €300
Administrative fee (per dependant) – €300
Residence permit fee (main applicant) – €27.50
Residence permit fee (per dependant) – €27.50

Fees are not refundable and exclude visa-related fees.

For further information about Malta residenceor citizenship feel free to contact us on +35622030000 or send us an email on privateclients@emd.com.mt

 

Malta Medical Cannabinoids Advice

As of March 2018, Malta legalised the production of cannabis for medicinal and research purposes through the Production of Cannabisfor Medicinal and Research Purposes Act.

The Maltese government sees the production of Medical Cannabis as a progression within its life sciences sector, which already includes the production of pharmaceuticals, active ingredients, medical devices, testing and batch release operations, research and clinical work, dossier building and so much more.

Since the enactment of the law, Malta Enterprise has received 50 project applications and 24 of them have been granted a Letter of Intent outlining an in principle approval of the project.

Medical Cannabis is seen as an opportunity for Malta to attract investment and boost its economy through job creation and taxation. Once operational, these projects are expected to create over 700 new full-time jobs and supplement Malta’s exports by over €900M by 2022, mainly to European Union markets.

Malta has been successful in executing its mandate through two key government entities working together. The Malta Enterprise is the agency focused on attracting foreign investment and providing potential partners with any necessary guidance and support. On the other hand, the Malta Medicine Authority assists companies applying for the pharmaceutical standard of Good Manufacturing Practices (GMP) to cannabis-based treatments.

All Medical Cannabis products must meet the stringent European GMP certification standard, which represent the highest levels of standards and traceability. Furthermore, Malta’s regulator for the Medical Cannabis sector is the Medicines Authority which is recognised by both EMA and FDA. Both these factors should enhance Malta’s appeal as a jurisdiction to invest in.

 

Malta Gaming Authority (MGA)

It is quite natural for you to face challenging situations while starting any business. These might consist of hiring workers, management of cash flow, management of time, formulating marketing strategies, getting rid of self-doubts, and so forth. In such situations, you will be in need of legal services for providing you with legal advice. Moreover, the presence of a legal advisor will prevent you from performing any illegal work which might be detrimental to your company. 

Here, we have stated some circumstances when your business will require legal services in 2021.

1. Expanding your business

In case your company is running well and you want to expand it, some assistance will be needed by you when it comes to legal matters. You might be searching for innovative items and services for satisfying your clients while expanding the business. It is also possible that you might skip any legal formality while doing so as well. Even though business expansion might appear to be a simple task, it is not that in reality. Competent legal support service is going to provide guidance to you while expanding your company so that you are able to concentrate on other essential aspects of your business. 

2. Solving issues

A professional legal service company is going to provide support to you every time you need them. Besides fixing your issues, they will likewise help you to control them so that they don’t creep up once again in the future. Even though recruiting your employees and sacking them might seem to be a simple task, it is not the actual fact. Although you might be able to save lots of cash by rehiring, you must know the rules and regulations beforehand. A legal service company will assist you to perform these chores in an effortless manner.

3. Safeguarding your company

Although you need to be very careful while operating a business, it might be essential for you to take some risks from time to time. None likes their companies to encounter legal issues which can impede the smooth functioning of the company. Legal issues are quite tough to stay away from and they might be quite costly as well as bothersome if not taken care of properly. A legal service will help you to get the job done easily.

In case you are a resident of Malta and would like to regulate gambling activities in that location, then Malta Gaming Authority will come of use to you. In fact, Malta Gaming Authority (MGA) happens to be Malta’s gaming control board which regulates all types of gambling in Malta such as casino and slot machines, lotteries, betting offices, and fantasy sports. 

EMD happens to be a multi-disciplinary company in Malta which provides legal, corporate, advisory, and tax services. The legal arm of the firm known as EMD Advocates offers a formidable global legal practice while focusing on several niche areas such as iGaming, tax laws, financial services, intellectual property, yacht and ship registration, employment law, construction law, etc. Apart from this, the company also offers services in the field of recruitment and human resources, ICT, and so on.