The Malta Employers’ Association today made an official request to Government to postpone the transposition of the EU Pay Transparency Directive into Maltese law set for June 7.
Amongst the reasons for this postponement, the Association cited the fact that six weeks prior to the scheduled deadline, there is still no draft text of the Maltese law. This reality is severely undermining the preparations of Maltese employers to comply with the law.
The Association President Ivan Refalo said that “Through regular engagement with its members via surveys, webinars and courses, we were growing increasingly concerned that several employers are experiencing much frustration and uncertainty about certain elements of the Directive and how it is yet to be transposed to Maltese law.”
The request being put forward by Malta Employers follows a parallel development in another EU Member State where the need for caution in this regard was underlined. The Swedish Government, in fact, announced its intention to postpone implementation and seek a renegotiation of the Directive, citing excessive administrative burdens and insufficient flexibility associated with the current framework.
Malta Employers’ request further aligns with a broader concerns raised at European level, including that articulated by BusinessEurope, which called for a “Stop the Clock” approach. The Association agrees with the pan-European advocacy organization that the Directive, while well-intentioned in addressing unjustified pay disparities, presents significant administrative and operational challenges that risk undermining its effectiveness if implemented prematurely.
In light of the above, Malta Employers responsibly urged Government to advocate for and adopt a temporary postponement of the Directive’s transposition. The postponement should be intended to (a) await the outcome of the requests and concerns raised at European level and a possible review of the Directive, and (b) give an adequate preparation period for local employers with an early publication of the draft Maltese law, well in advance of its coming into force.
“All in all, such a postponement would allow for improved legal certainty and a more practicable implementation framework that safeguards both gender equality objectives and labour market efficiency, given the current state of play,” concluded Ivan Refalo.