There were several important legislative changes which were published over the course of June 2025. Below is an overview of the key updates across different areas.
Two pivotal Acts were published in June, namely, the Employment and Industrial Relations (Amendment) Act, 2025 published on the 6th June 2025, introducing changes to the Employment and Industrial Relations Act, Chapter 452 of the Laws of Malta. The amendment to article 45(1) increases the fines for employers who breach employment conditions with the penalty now ranging from €2,000 to €5,000, replacing the previous range of €232.94 to €2,329.37. Furthermore, if the employer is found guilty of a second or subsequent offence, the fine will range between €5,000 and €7,000. These fines apply to violations of recognised conditions of employment set by national standard orders, sectoral regulation orders, collective agreements, or any provisions of the Act or regulations made under it. Additionally, article 47(1) has been amended to extend the time limit for initiating legal proceedings from one year to two years from the date the offence was committed. Additionally, the Constitution of Malta (Amendment) Act, published on the 27th June 2025, amends the Constitution of Malta in relation to the justice sector. In particular the amendments establish and regulate the role and appointment of the Commissioner for Standards of the Judiciary and renew the framework governing disciplinary proceedings against Judges and Magistrates.
The Health and Safety at Work (Administrative Penalties and Compromise Fines Publication) Regulations, 2025 published on the 13th June 2025, establish parameters in terms of article 28(1) of the Health and Safety at Work Act, for the publication of administrative penalties that have been finally determined and compromise fines that have been paid. Also published in June, the Tax Rate Adjustment (Amendment) Rules, 2025 highlight that from 2026 onwards, no further rebates under the Tax Rate Adjustment Rules will be available. Additionally, manual filings for certain entities are extended to 31 July 2025.
One bill is currently in progress in addition to the bills mentioned in our previous legal update for May 2025. The Holders of Public Office and Public Entities (Responsibility) Bill (Bill 137 of 2025) proposes to establish and regulate in law the parameters of personal civil responsibility of persons forming part of the State administration, and to identify the circumstances in which public institutions and entities shall bear or assume responsibility in place of such persons or shall recover damages for acts done in the exercise of public functions.
At a European level, the EU Pharma package gains momentum as on the 4th June 2025 the European Council published a press release to notify that negotiations shall commence with the European Parliament, having agreed its position on new rules that aim to make the EU’s pharmaceutical sector fairer and more competitive.
Further to this, the European Securities and Markets Authority (ESMA) published its first CCP resolution briefing, aiming to support National Resolution Authorities (NRAs) on the operationalisation of the cash call mechanism. The briefing, developed by ESMA’s CCP Resolution Committee, provides a methodology to be considered by NRAs when including the resolution cash call in CCP resolution plans.
Locally, the Financial Intelligence Analysis Unit (FIAU) provided updates from the Financial Action Task Force (FATF) regarding the Standards on Recommendation 16 on Payment Transparency, the major gaps in global response to Proliferation Financing and Sanctions Evasion, and published the Guidance on Financial Inclusion and Anti-Money Laundering and Terrorist Financing Measures. Additionally, the FIAU also highlighted the publication of Europol’s annual Internet Organised Crime Threat Assessment (IOCTA) 2025 which contains Europol’s analysis of evolving threats and trends in cybercrime, focusing on the significant changes over the past 12 months.
In the financial regulation sphere, the Malta Financial Services Authority (MFSA) published a Circular, intended for authorised Under Threshold Class B CSPs following the recent legislative enhancements introduced by virtue of Act X of 2025. As of the 16th May 2025, the maximum number of allowed involvements for Under Threshold Class B CSPs has increased from 10 to 20. Individuals wishing to retain their current authorisation need take no further action, except to return the original Annex to their Authorisation Certificate so it may be updated to reflect the revised limit. Alternatively, individuals who do not intend to exceed 10 involvements may opt to convert their authorisation to that of a Limited Company Service Provider by submitting a formal request using a template letter prepared by the Authority, by the 30th September 2025 to ensure timely processing. The MFSA highlights that any future request to revert to an Under Threshold Class B CSP status will require undergoing the full authorisation process anew. A third option is available for individuals who are not actively seeking further involvements and whose current activities are not conducted “by way of business”; such individuals may consider becoming Restricted Company Service Providers. However, before doing so, they must assess whether their services are indeed not commercial in nature, based on guidance provided by the MFSA. If eligible, they must first seek approval to surrender their current authorisation before submitting a Notification Form to become a Restricted CSP.
In relation to gaming, the Malta Gaming Authority (MGA) published its Annual Report and audited Financial Statements for the financial year ended 31 December 2024. The report offers an in-depth overview of the performance of Malta’s land-based and online gaming sectors during 2024, while also highlighting the Authority’s key activities and regulatory developments over the past year. It also offers a medium-term outlook for the broader gaming industry, reflecting emerging trends, regulatory shifts, and the evolving market landscape.
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