Malta Employers Welcomes Commencement of Reform of the Industrial Tribunal to Expedite Decisions and Provide Certainty

The Malta Employers’ Association welcomes the beginning of the process to reform the Industrial Tribunal as announced by the Prime Minister at the end of May and more recently by the Parliamentary Secretary for Social Dialogue.

The Industrial Tribunal is a key component in the country’s regulatory infrastructure and plays a key role in the smooth functioning of the labour market. The Association has long called for reform in this regard and to this end, had given its detailed recommendations way back in 2014 and subsequently organised a conference on the subject.

Malta Employers augurs that the reform embarked upon is holistic in approach. The reform must include the updating of legal concepts and definitions to match the significant transformations undergone in the labour market in recent years including flexible work arrangements, digitalisation and automation, atypical employment models and a globalised workforce to compensate for worker shortages, amongst others. On the other hand, the Association also calls for strong investment in resources and physical infrastructure to address the logistical challenges that are known to hamper the smooth conduct of hearings. The combined effect of all challenges being encountered in the Industrial Tribunal process is leading to many cases being resolved through out of court settlements which practice is defeating the very purpose of the Industrial Tribunal.

Malta Employers is mainly after ensuring timely and consistent decisions from the Tribunal. It believes that proper justice is done when it is delivered on time and when it is delivered with least uncertainty as possible. Prescribed time-frames for the conclusion of cases will render workable much needed parameters to guide the Industrial Tribunal Chairpersons in determining the amount for compensation awarded. Indeed, Malta Employers had proposed that awards should be bound by upper thresholds of compensation which should not exceed eighteen months salary.

Malta Employers believes that such recommendations will lead to ensuring fairness, certainty and clarity to all parties involved whilst contributing to the upholding of good governance in local businesses and organisations. Moreover, it is encouraged by the fact that the reform is equally desired by the trade unions and Government in an effort to safeguard the interests of the worker and offer more certainty to business.

As a leading employer representative in the country, Malta Employers is eager to contribute its vast, specialised experience and expertise in the field and hopes to be actively involved in the reform process.

ENDS