Work Permits – Transfers/Takeovers of Business and Mergers

Generally, a work permit is issued to a third country national to work for a specific employer and to carry out a specific role. The work permit issued is, typically, non-transferrable.

Whilst work permits are, technically, non-transferrable, transfers of TCN employees:

(i)        on an intra-group basis (i.e. between employers which form part of the same group), subject to the same role being retained by the employee; or

(ii)       transfers of employees from one employer to another, as a direct result of a merger or acquisition of a business, where the transfer takes place through a formal notification process;

should, subject to Identita’ being notified of this change, be re-issued in the name of the new employer without having to satisfy labour market considerations.

It is crucial to note that the process which was previously set out in the Jobsplus “Employment Licenses Unit Guidelines for Clients, January 2021 (which Guidelines are no longer published on Jobplus’ website and which Guidelines we understand are in the process of being updated) has been supplemented by a relatively new policy, enforced by Identita’, which came into effect on 1^st September 2024.

In terms of current policy, where employees are involved in an intra-group transfer of business or a transfer resulting from a merger or acquisition, the employer must submit a Change in Employer Application through the Single Permit Portal.

Failure to submit an application may render the employee being deemed to be residing illegally in Malta, which may result in serious consequences for both the employer (should it be deemed to be employing persons illegally) and the employee (who would have no legal basis to remain in Malta).

Currently, the policy does not provide for a clear time frame within which a Change of Employer Application – Transfer of Business is to be submitted and therefore we strongly recommend that any such transfers are planned and structured well in advance. We understand that in terms of current practice Identita’ would expect the application to be submitted prior to the transfer occurring, so employers must ensure to plan for same in any transfer process. It is important to note that these time periods are not reflected in any law, guidance or publication.