Higher Fines and Extended Deadline for Criminal Employment Law Breaches

Act No. XIV of 2025, promulgated on 6 June 2025 (the “Act”), introduced amendments to the Employment and Industrial Relations Act, Cap. 452 (the “EIRA”), concerning the punishment and limitation period applicable to employment law breaches, which attract criminal liability. The amendments will take effect in a couple of months.

First, the Act makes the punishment tougher by significantly increasing the range of the fine that may be imposed for an offence committed by an employer under article 45(1) of the EIRA. This is even higher for repeat offenders.

The offence described in article 45(1) of the EIRA involves contravening or failing to comply with any recognised conditions of employment as prescribed by a national standard order or by a sectoral regulation order or by a collective agreement, or with any provisions of the EIRA or any regulations made thereunder.

According to the new provisions, an employer who is convicted of such offence may be fined between €2,000 and €5,000. For a second or subsequent conviction, the fine will be between €5,000 and €7,000.

Secondly, the Act extends the timeframe for bringing proceedings for an offence under the EIRA or any regulations or orders made thereunder, allowing criminal action to be commenced within two years of the commission of the offence – doubling the previous one-year prescriptive period. 

These amendments serve as a stronger deterrent against employment law breaches, promoting greater compliance and accountability from employers. They are also expected to strengthen the DIER’s role in enforcing and maintaining standards of employment conditions, and will allow individuals more time to file complaints with the DIER and the DIER more time to investigate and take the necessary steps.

Employers are encouraged to maintain fair employment practices and focus on compliance to mitigate potential financial and legal exposure.