Maltese Court Confirms Exclusive Jurisdiction of Industrial Tribunal in Employment Status Claims
A recent judgment of the Maltese Civil Court, First Hall, has clarified the extent of the Industrial Tribunal’s exclusive jurisdiction, confirming that claims arising from alleged employment misclassification fall within the competence of the Industrial Tribunal even where the relief sought includes compensation for (allegedly) unpaid social security contributions. In a partial judgment delivered on 5 November 2026, in Alex Frederic Bert vs First2Resource Limited et (Application No. 1358/2024DC), the Civil Court, First Hall, presided over by Madam Justice Doreen Clarke, addressed this important jurisdictional question. Background to the dispute The proceedings were instituted by an airline pilot who had been engaged under contractual arrangements describing him as an independent contractor. The claimant maintained that, notwithstanding the contractual designation, the actual circumstances of his engagement meant that he should have been classified as an employee. He argued that, as a consequence of his alleged misclassification, the defendant companies had failed to pay the social security contributions which would have been payable had he been correctly recognised as an employee. The claimant accordingly sought three principal remedies: a declaration that he had been an employee, a declaration that the defendants had failed to pay the applicable social security contributions, and an order requiring the defendants to pay the same. The defendants raised several preliminary defenses, including that the Civil Court lacked jurisdiction ratione materiae, arguing that the dispute fell within the exclusive competence of the Industrial Tribunal. The Court’s decision The Court upheld the preliminary defense, and concluded that the Industrial Tribunal had exclusive jurisdiction to hear the claim. In reaching its conclusion, the Court considered Article 75(1)(c) of the Employment and Industrial Relations Act (Chapter 452 of the Laws of Malta), together with Regulation 12(1) of the Employment Status National Standard Order (Subsidiary Legislation 452.108). The Court observed that the statutory framework expressly empowers the Industrial Tribunal to determine complaints concerning breaches of rights arising under the Employment Status National Standard Order and to make appropriate remedial orders, including orders for compensation. The Court held that this jurisdiction was not limited to determining whether an individual was correctly classified as an employee. It also extended to consequential claims for unpaid social security contributions. The Court expressly rejected the argument that the Industrial Tribunal lacked the power to order payment of contributions owed to governmental authorities. It reasoned that the Tribunal’s broad remedial powers could encompass orders requiring the defendants to pay outstanding contributions to the competent authorities or, alternatively, to compensate the worker in respect of contributions already paid or which the worker would have to pay. Accordingly, the fact that the claim concerned statutory social security contributions, rather than a conventional claim for unfair dismissal or employment-related compensation, did not remove it from the Industrial Tribunal’s jurisdiction, as the determination of the claim first required the claimant to be classified as an employee, or otherwise, in terms of the Employment Status National Standard Order. The Court ordered the proceedings to be transferred to the Industrial Tribunal pursuant to Article 741(b) of the Code of Organisation and Civil Procedure. Why the judgment matters The decision is significant because it confirms that the jurisdiction of the Industrial Tribunal must be determined by reference to the statutory framework governing the rights asserted, rather than simply by the form or monetary nature of the remedy requested. Where a dispute concerns an alleged employment relationship and rights arising under the Employment Status National Standard Order, the Industrial Tribunal may have exclusive jurisdiction over both the determination of employment status and the consequential financial remedies. This is particularly relevant to businesses engaging individuals as self-employed contractors, consultants or other independent service providers. Such arrangements may give rise to disputes concerning employment status, statutory contributions and other employment-related entitlements, notwithstanding the contractual terminology adopted by the parties. The judgment also demonstrates that the Industrial Tribunal’s jurisdiction is not necessarily confined to traditional employment remedies. Its statutory powers may extend to consequential financial claims involving obligations ordinarily associated with other areas of law. The judgment was confined to jurisdiction. The Court did not determine whether the claimant was in fact an employee, whether contributions were outstanding, or whether the claims were time-barred. Those questions remain for determination by the Industrial Tribunal. Adrian Mallia and Kirstin Abela Caruana assisted one of the defendants.
