Authorities are hoping that widespread exploitation of temporary workers will soon be a thing of the past with new legislation licensing temping agencies set to come into force next year.

The law was announced by Parliamentary Secretary for Social Dialogue Andy Ellul in a press conference on Wednesday.

New legislation set to be published on Thursday will outline how any individuals or agencies engaging temporary workers will need to first obtain a licence issued by authorities before being allowed to operate.

This is the latest move in an attempt to address growing concerns over exploitative practices across a sector that has long been mired in suspicions of abuse.

Plans for temping agencies to be regulated were first announced by Ellul late last year, with NGOs pointing to several cases of migrant workers trapped in abusive jobs in a white paper a platform of NGOs presented to the government earlier this year.

While the previous lack of regulation makes it impossible to accurately estimate how many agencies operate within the sector, authorities believe that the new law is likely to impact hundreds of agencies or operators.

“We had a situation where anyone could wake up in the morning and decide to start importing workers without any form of control. This is now set to change”, Ellul said.

“We are creating a structure where serious agencies can operate to attract quality workers in sectors where we need workers.”

Applications open January 1

The law will apply to agencies engaging both Maltese and foreign workers.

It will come into effect on April 1 but applications will open at the start of the year. The law will also allow for an adjustment period before sanctions kick in on June 1.

First-time applicants will need to pay a €3,000 application fee, with a further €1,500 charge when the licence is set to be renewed.

Ellul explained how while previously only recruitment agencies were required to obtain a licence, the new law will extend this principle to outsourcing agencies and temporary work agencies.

These agencies will need to meet a series of criteria and pass due diligence vetting before being granted a licence.

Fines up to €30,000

Anyone caught operating without a licence will face a fine of up to €30,000, while other contraventions can result in a fine of between €5,000 and €7,000.

Agencies that have their licence revoked or not renewed will be named and shamed. They will also be blacklisted to prevent them from applying for government contracts.

The law will expressly prohibit the practice of agencies charging workers or deducting money from their wages for a licence and will punish any local agencies that are caught working with international temping agencies that carry out this practice.

Companies caught engaging workers through an unlicenced agency will also be liable for punishment.

The law will also force agencies to provide a bank guarantee which would then be distributed to employees if the agency loses its licence.