Understanding Malta’s New Labour Migration Policy: What Businesses Need to Know from Public Consultation NL-0001-2025

In response to Malta’s evolving labour market dynamics, the government has launched an extensive public consultation on its proposed Labour Migration Policy under document reference NL-0001-2025. This policy is designed to balance the country’s economic growth with the need for sustainable, transparent, and fair employment practices, particularly in the employment of Third Country Nationals (TCNs).

Whether you’re an established business, a startup, or an HR leader in Malta, understanding the implications of this consultation is essential. In this article, we break down the key points from the consultation and explain how FM Consultancy can help you navigate what lies ahead.

Why a New Labour Migration Policy?

Malta’s economy has grown rapidly in recent years, and with it, a rising demand for foreign workers. TCNs now make up a significant portion of the workforce, especially in sectors like hospitality, construction, healthcare, and financial services.

This growth, however, has created challenges in:

• Ensuring adequate working conditions
  
• Monitoring employer compliance
  
• Matching migration with labour market needs
  
• Addressing strain on infrastructure and public services
  

The Malta Labour Migration Policy 2025 sets out to address these issues with clear, structured reforms that aim to regulate, streamline, and enhance the country’s foreign workforce policies.

What Is This Public Consultation About?

The consultation document outlines 32 key proposals aimed at strengthening how labour migration is managed in Malta. The main objectives of the policy are:

• Enhancing fairness and sustainability in labour migration
  
• Improving oversight of employment practices
  
• Encouraging long-term talent retention
  
• Shifting towards a skills-based migration model, instead of focusing solely on quotas or volume
  

Stakeholders from various industries—including employers, unions, and civil society—were invited to provide feedback on the proposals.

Key Focus Areas of the New Policy

Here are some of the most important areas addressed in the public consultation:

1. Minimum Termination Thresholds

The policy proposes monitoring the rate at which TCN employees are terminated by companies. Employers who exceed certain termination thresholds may face limitations on hiring new foreign workers.

2. Employer Eligibility and Definitions

The new definitions clarify who qualifies as an “employer” under the law, particularly in the context of corporate groups and subsidiaries.

3. Intra-Company Transfers

Provisions have been made for internal mobility within business groups, especially after a TCN has worked with the same group for at least one year.

4. Seasonal and Temporary Work

The policy introduces flexibility for employers who rely on seasonal staff, particularly in tourism and hospitality, with higher termination thresholds and allowances for cyclical employment.

5. Labour Market Testing

More rigorous labour market testing will ensure that roles filled by TCNs cannot be met by the local or EU workforce.

6. Fee and Permit Reforms

The consultation also outlines simplified fee structures and streamlined processing for work permits and job role changes.

Timeline: What’s Happening in 2025?

Implementation will be gradual and is broken into two key phases:

• August 2025:
  Monitoring of employer termination thresholds will begin. No penalties will be enforced yet, but employers will receive notifications if their termination rates are unusually high.
  
• October 2025:
  Enforcement begins. Employers not meeting the standards may face restrictions when applying for new work permits.
  

This phased approach gives businesses time to adapt and review their practices.

What This Means for Employers

If you employ foreign workers, these changes will affect:

• How you plan workforce growth
  
• Your eligibility to apply for new TCN work permits
  
• How you manage employment contracts and terminations
  
• Your reporting and compliance obligations
  

It’s especially important for companies to start tracking termination rates, as these may become a determining factor in future permit applications.

How FM Consultancy Can Help

Understanding labour migration law can be daunting, especially with frequent policy changes. That’s where FM Consultancy steps in. Here’s how we can assist:

Compliance Audits

We help you assess your current TCN employment structure and termination history, ensuring you’re aligned with upcoming thresholds.

Workforce Strategy

We offer strategic planning for your hiring process, especially if you’re operating seasonally or within a corporate group.

Permit and Documentation Support

We guide you through the application process for new permits, intra-company transfers, and occupation-specific exemptions.

HR Policy Updates

We help your HR team integrate new reporting and compliance processes, including termination reporting timelines.

Representation and Advisory

We stay up to date with Jobsplus and government feedback, ensuring you have the latest policy interpretations and administrative updates.

Why Participate in Public Consultations?

Although the official consultation period for NL-0001-2025 may close soon, future changes will likely go through similar channels. Businesses are encouraged to stay active in policy conversations — your feedback can shape how future regulations are implemented.

FM Consultancy can assist in drafting formal submissions or representing your interests in future consultations.

Final Thoughts

The Malta Labour Migration Policy 2025 marks a turning point in how the country balances growth with labour regulation. By taking a structured approach to monitoring employers and prioritising sustainable migration, the government is creating a more resilient and fair business environment.

For Maltese companies, especially those relying on Third Country Nationals, now is the time to review your HR strategy, audit your compliance processes, and prepare for the upcoming rollout.

Let FM Consultancy be your trusted partner through this transition.

Get in touch today for a personalised consultation or a readiness review ahead of the new policy changes.