What does Maltese Law say?

The new EU Pay Transparency Directive is yet to be transposed into Maltese law.

(Transposition is required since, unlike an EU Regulation, a Directive needs to be introduced into the domestic laws of an EU Member State. Generally, in Malta, this would be done by the publication of a new Subsidiary Law or an amendment to an existing law. Directives set minimum standards. Therefore Member States’ domestic laws may introduce more (but not less) burdensome requirements on employers)

However, Maltese law already includes the principle of equal pay for work of equal value. It includes several rules

• On how pay structures can be defined, by “class” [Read here to understand how ‘class’ is defined]

• On how the terms of payment and conditions of employment must not be less favourable for employees in the ‘same work’ or ‘work of equal value’.

• On the requirement of ensuring gender neutral criteria if job evaluation is used to determine pay. (Read here to understand more about job evaluation).

Decisions of the Maltese industrial tribunal or courts are very scarce and limited in scope, but this is likely to change.

Way Forward?

For those HR specialists who never stopped to think about this, now’s the time. Wake up to smell that coffee! If you’ve never undertaken a correct gender-neutral pay evaluation exercise (also referred to as job classification), then there is the chance that your pay structure is marred by hidden bias. Hidden bias can be very costly, and overcoming gaps will require time, effort and resources.

So, well done to those who are prepared. For the rest, as the Maltese saying goes, “Tistenniex il-bajtra taqa’ f’ħalqek“”. But don’t panic – you are not alone in this journey and there are experts out there who can guide you through this journey. Speak to us if you need.

Read more to learn what a job evaluation system is.