AI

Maltese employment law is gradually adapting to the integration of Artificial Intelligence (AI) in the workplace. While there is no standalone legislation on AI in employment, existing laws, particularly those concerning employee representation, health and safety, data protection (including the EU GDPR), discrimination, and transparency, apply to AI-driven decision-making.

The EU AI Act has brought about a significant change for employers and HR professionals who use AI systems in their processes, whether in the course of their operations, recruitment, performance evaluation, talent management or workforce monitoring.

Certain practices are now outright prohibited, whereas others will be classified as High Risk, with elevated compliance requirements. This Regulation introduces layers of obligations ranging from data quality, documentation, conformity assessments, all the way to human oversight and transparency. Central to this is the level of decision making which the AI system handles autonomously.

It is not just developers (“providers”) of AI Systems that must comply, but also those who “deploy” AI systems. An employer is likely to be a ‘deployer’ but if the employer makes modifications to an existing system, or modifies its intended purpose, then the employer may also be deemed to have become a ‘provider’.

The EU AI Act can have extra-territorial effect, applying to multinationals if, for instance, their AI systems outside the EU are used to make decisions in relation to the workforce based in the EU.

How we help: Employment360 guides clients through the ethical and legal use of AI in HR processes, ensuring compliance and fairness. We offer audits, policy drafting, and training to mitigate risks and align with evolving EU standards.