BREXIT: Residence Status of UK nationals

The Agreement on Withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community (herein referred to as ‘the Agreement’) came into effect on 1 February 2020. Therefore, as from 1 February 2020 0000hrs (CET), then the UK is considered to be a third country to the European Union;

In this regard, it is imperative to note that:

  • Part Two of the Agreement covers issues regarding the rights of UK nationals in the EU and EU nationals in the UK, including Malta;
  • Part Four of the Agreement provides for a transitory period that is envisaged to end on 31 December 2020. This period may be extended by a further one or two years if there is an agreement between the EU and the UK until 31 July 2020. Amongst the provisions of this part of the Agreement, there is a priviso that Union law shall be applicable to and in the United Kingdom during the transition period.
  • This means that effectively nothing will change until the end of this period (i.e. status quo at least until the end of December 2020).
  • During this period, negotiations at EU level will commence on the EU-UK relationship after the end of the transition period in a number of areas.

 

Focusing specifically on Part Two of the Withdrawal Agreement, this:

a. Guarantees the rights of EU nationals in the UK and UK nationals in the EU that would be in each the respective territories before the end of the transition period (whenever that may be).

b. It protects beneficiaries (and their family members) residence and related rights indefinitely.

Beneficiaries include:

i    Family members of EU nationals who are granted rights under EU law, including those who do not yet live in the same host state as the EU citizen or UK national, who wish to join them in the future (as long as the relationship started before the end of the transition period);

ii.   Children, irrelevant of whether they are born before or after the end of the transition period

iii.   Frontier workers and in the country where they work.

c.      In terms of its material scope, the Agreement covers:

i.   Residence rights (ensuring that the substantative residence conditions are the same as those under current EU law on free movement);

ii.    Social Security (the persons concerned will continue to maintain their right to healthcare, pensions and other social security benefits in the same way as EU nationals);

iii.   The right to take up employment or carry out self employed activity, as well as all their workers’ rights based on EU law;

iv.    Recognition of Professional qualifications (decisions taken before the end of the transition period would continue to be valid and pending cases at the end of the transition period would be finalised under the same conditions).

As regard the implementation of the above in Malta, the Government has published legislation with details about

  1. The process of applications including deadlines related thereto both for UK Nationals and their family members in Malta until the end of the transition or those joining after the end of the transition;
  2. The rights of beneficiaries to receive residence documentation;
  3. The fees (and exemption therefrom) applicable for beneficiaries of this status;
  4. Loss of rights and access to safeguards / appeal;
  5. The fact that the residence documentation issued to a person on the basis of his right to free movement prior to the Withdrawal date and who qualify as a beneficiary under these Regulations would continue to be valid until a residence document issued under this Regulation would be issued.

The legislation establishing an immigration status for UK nationals resident in Malta on the date of withdrawal of the UK from the EU is also going to be repealed by this subsidiary legislation.

All UK nationals resident in Malta and already in possession of a an EU Residents Certificate will receive information from Identity Malta in the coming days to exchange their documents to one reflecting the new status.

‘Fostering workers’ initiative launched by Malta Chamber of SMEs

The Malta Chamber of SMEs has embarked on a “fostering workers” initiative of matching newly laid-off employees to available jobs and employers.

It informed members that while it was doing its utmost to get the government to SMEs the direct help they needed in these challenging times, they were aware that some had no other option but to start laying off people.

“We ask you to, where possible, hang in there and support your employees a while longer as the government is promising that the real measures we are asking for are not far away.”

In the meantime, it said, it was starting an initiative of fostering workers.

The chamber said very few sectors were doing well or still going on and might need or could afford to take on a bit of extra help. Whoever was in this situation should get in touch to save some workers from redundancies.

“A number of businesses have workers that are risking imminent layoffs and also vehicles and equipment that is available ready for use. The Malta Chamber of SMEs will help with the matchmaking,” it said pointing out that no one was looking to make profit out of this.

“The only aim is to keep workers in employment and help each other.”

Source: timesofmalta.com

Public health measures welcome, economic measure are required with great urgency – SME Chamber

The Malta Chamber of SMEs in a Press Release confirmed its agreement with the public health measures announced earlier today.

The SME Chamber stated that many businesses in the non-essential category have themselves decided to close in the past week due to lack of business and also unjustified risk for their staff and spreading further the disease. Malta has now effectively made another decisive move towards the lockdown.

The Malta Chamber of SMEs thanked the health authorities as well as all the essential private sector operators. Pharmacies, operators in the food chain and other front-liners are working tirelessly to continue supplying their service in this time of need. We emphasize with the public and private sector about observing public health direction so that this time of sacrifice reaches the desired objectives.

Greater clarity is required from the authorities about the exact list of operations that will be allowed to continue. The SME Chamber said that they are in receipt of many queries asking about further details on the latest announcements.

These include dispensing  opticians, queries related to working behind closed doors, deliveries that were planned as well as repair services. The SME Chamber calls on the government to publish the full information that would be required with such announcements since immediate decisions affecting Human Resources would need to be taken.

Unfortunately these announcements were not accompanied by the necessary economic support measures, the SME Chamber insisted. The UK government has just made such announcements a few days ago and these were accompanied by strong measures that avoided much pressure on enterprises and their employees. The UK government in-fact announced wage subsidies covering 80% of wages up to €2,700 a month per worker. Similarly the Danish government is committed to cover 75% of workers’ salaries, up to €3000 for the coming months.

The economic pressures are extremely worrying and an emergency response mechanism is needed today. Employers and their employees are trying to push through impossible situations that are affecting their day-to-day life and mental health, hoping for a breakthrough in discussions. A message of economic hope is necessary for our country and community not to go into a further deteriorating economic state.

Licensed boat operators join the Malta Chamber of SMEs

A group of licensed boat operators that operate non-scheduled charters and pre-booked trips around Malta and Comino have joined the Malta Chamber of SMEs for formal representation in a bid to address recent serious events that are threatening their sector’s livelihood. Transport Malta, the Minister for Transport and the Prime Minister have been informed accordingly.

As per a concession granted through the Comino Ferry Tender and later communicated via Port Notice 1/2020, Transport Malta planned to replace the service offered by numerous small operators that have been in this business for decades. The Malta Chamber of SMEs will be defending the right of these operators not to be sidelined by a single player and consequently keep their place in the market.

Being operators duly licensed by Transport Malta itself, it is highly unjust that the same authority did not involve the already existing and operating players with the drafting of its strategy and instead forged ahead with its drastic, potentially unconstitutional plans that have a direct and clear impact on their business operation. The way the tender was issued also raises serious doubts on its legality in terms of public procurement rules. The move is also deemed to pose a breach under competition law.

The operators have sought redress in front of the Maltese Courts and the Public Contracts Review Board.

Meanwhile, implementation of Port Notice 1/2020 and the Comino Ferry Tender have been temporarily blocked from moving forward. This Port Notice unequivocally states that “In terms of the agreement, the Authority (Transport Malta) will be granting the Operator the exclusive right to provide scheduled passenger ferry services by sea on the route between the coastal area covering Cirkewwa South Quay to Marfa, Malta and the landing places found therein, and the berthing facilities and landing places in Blue Lagoon and Santa Marija Bay in Comino at all times. The Authority shall not authorise other passenger ferry operators to provide the same and/or similar services with the same rights on this route”

On meeting the Chamber of SMEs, the operators explained how they felt cheated that indications given by Government led them to believe that the request would be for a service that would complement theirs and not seek to push them out of the market. Most operators are family businesses that have been long operating and feel they are being pushed aside by an authority that has granted exclusive use of public land to accommodate one large player.

As a Chamber of SMEs, we condemn such an approach from an authority that should use its powers to protect small operators and the best interest of Malta at large. As a Chamber we see no valid reason for the need for such a concession, giving the exclusive right of use being grated to the select company and only bidder through very poor procurement practices.

As a Chamber of SMEs, we have already repeatedly signaled the authorities about the numerous malpractices our members have been experiencing in public procurement. No stone will be left unturned and we will demand that the authorities and those responsible shoulder full responsibility for their actions.

A link to the port notice may be found here.

Malta Energy celebrates its first milestone in a bid to defeat Malta’s renewable energy inertia

The subject of energy sustainability is certainly an area that Malta can do much more and accomplish better results. Our island presents many challenges but certainly ample opportunities that must be explored to the fullest of potential.

MaltaEnergy Ltd, a partnership between the Malta Chamber of SMEs and the Water Services Corporation was set up exactly for this reason. The company can now announce its first successful milestones and is an example of how targets can be met in line with the best practices.

The company invested a lot of time and effort to make sure that the projects being offered would involve as many enterprises as possible from procurement stage, whilst respecting E.U. directives. This way of doing public procurement is a best practice which moves away from the common practice of demanding to deal with just one entity that can take up all the work. It gives SME structures the direct opportunity to participate and provide quality projects.

The final project will involve putting specific rooftops to good use, and generate renewable energy.

The tender has now been awarded and is nearing implementation stage. A total of 5 different enterprises will take up the project with full ownership and responsibility, and with no cost or risk to the government. In return the operators will get a return from the energy generated and business stability for 20 years, strengthening our green economy and green jobs. The project will ultimately provide better grid stability and put us in a better position to cater for foreseen increased requirements our country will have on renewables.

MaltaEnergy Ltd is confident that these models are best practices for other public entities to follow and will pave the way for other projects of this sort.

If future projects are issued on this model, Malta will be in a much better position to reach and maybe exceed its renewable energy targets. In this case, the project capacity has doubled due to more efficient use of space, from 1 MW as originally estimated, to 2MW as proposed by the winning bidders.

It is estimated that the project will generate circa 3 million kilowatts of clean energy annually.

Businesses optimistic for 2020, Political instability and reduced profitability negatively affected 2019

Overall business performance during 2019 was mostly in line with expectations, reflecting an economy that was projected to slow down slightly. On the other hand, factors that left their mark on 2019, and which were not foreseen were clearly the political, and resultant economic instability and lower profitability. These two factors, in fact, also rank high in terms of concerns businesses cited for 2020, together with labour shortages. These figures emerge from an online survey conducted by the Malta Chamber of SMEs.

Whilst political instability was at its high mainly during the final months of 2019, unfortunately, it also coincided with the most important business period for the majority of enterprises. This phenomenon adversely affected client spending with Christmas shopping starting later than usual (closer to the 24th December rather than the previous week) while Black Friday scored below expectations for more than half of the respondents. Even though this trend was observed across all of Malta, Valletta operating outlets suffered the most. Electricity outages during this same period were also cited as another contributor of these disappointing results.

The respondents cited owner led initiatives such as new investments and marketing, increased consumption and staff training as some of the main drivers were positive performance was experienced.

The political situation, lower profitability, unfair competition, increased local competition, traffic congestion and parking featured high as contributors to negative performance.

60% of enterprises running January sales or discounts stated that business performance was in line with expectations. The rest of the respondents, excluding 4% that claimed that performance exceeded their expectations, stated that business started slower than expected in 2020.

The majority of businesses do however have a balanced to positive outlook for 2020. 75% feel that in 2020 they expect that business performance will be the same as in 2019 and some even expect it to improve. The remainder fear that business performance will worsen. This feeling of confidence can most likely be attributed to positive political developments witnessed from the second half of January.

 

Methodology:

The Malta Chamber of SMEs’ Business Performance Survey was conducted between the 9th and the 24th of January and gathered over 300 business responses. Participating enterprises came from a wide variety of sectors across Malta and Gozo. 69% of respondents qualify as micro enterprises, 22% as small and 9% employ over 50 employees.

Malta Chamber of SMEs launches a new image for 2020

“GRTU REBRANDS, MARKING A MILESTONE IN ITS 70 YEAR HISTORY”

The Malta Chamber of SMEs is today unveiling its new name and visual identity. We are positioning the organisation to reflect the modern and contemporary SME representative body it truly is today. Changing its name from the renowned ‘GRTU’ was a necessary step for the organisation to visibly reflect who it represents and how it evolved beyond just retailers and traders to all of Malta’s economic sectors, being micro, small and medium enterprises.

The SME Chamber is the longest standing business representative and has today grown to become the largest by representing SMEs from all economic sectors operating in Malta.  Our services have increased and diversified to cater for the needs of our members and the changing times.

Our new name reflects our wider representation and thanks to EU funding this is being complemented by fresh branding and an outreach strategy that will help spread information about the effectiveness and value of social dialogue.

The President of the Malta Chamber of SMEs, Mr Paul Abela, said that the organisation has been always very vociferous and always spoke freely in the interest of Maltese businesses and the national interest. ‘We have done this irrespective of who is in government because our interest is solely the national interest and as a result that of our members’.

A study undertaken recently with the general public has confirmed how the majority of respondents feel that the organization speaks for the national interest, showing wide appreciation for the important role the organization plays in today’s social, economic and political scenario.

Malta Chamber of SMEs CEO, Abigail Mamo, stated that Malta’s business demographic in terms of diversity of sectors operating in Malta has evolved greatly over the years. The service industry has grown exponentially and many new refined and value adding sectors have entered our economy in recent years and this is reflected in our membership base. ‘With these new sectors joining us we have also developed new services to cater for their needs. Our brand reflects the enterprises we represent and how our own organisation has grown along the years. With our new brand and further service development we are ready to take on the opportunities and challenges facing our members in 2020 and the years to come’.

Malta Chamber of SMEs congratulates Stefano Mallia on being elected President of the Employers’ Group

Malta Chamber of SMEs congratulates Stefano Mallia on being elected President of the Employers’ GroupHeartfelt congratulations to Stefano Mallia on his well deserved appointment.

Mr Mallia has been active in the EESC, representing Maltese employers, for the last 9 years. During this entire time, he has worked close to us as an organisation and has truly succeeding in delivering Europe to Malta and giving Maltese employers a voice in this important forum.

The European Economic and Social Committee is a very important institution being the voice of organised civil society in Europe. It is a reflection of what MCESD is in Malta. It is therefore instrumental and essential to our function as social partners.

As an SME Chamber we have also supported his candidacy and we express our pride on behalf of Maltese SMEs in having a Maltese national and a business person occupy this important position.

We are certain that more positive things will come to Malta and Maltese Businesses with Stefano Mallia’s appointment.

SME Week Conference 2019

Absolute majority of enterprises concerned about the banking situation in Malta

GRTU 1GRTU Malta Chambers of SMEs today organised it’s annual SME Conference. This years conference focused on the Banking and financial issues and GRTU Malta Chamber of SMEs published it’s survey results. During this years’conference over 200 enterprises attended this event.

The conference was supported by Business 1st and MEIB as part of the month-long itinerary of SME Week.

74% of the enterprises replied that they find it difficult to get funds from banks. Up by 25% over the results of a similar survey that asked the same question in 2011.

The survey results show that businesses need more competition in the banking sector and that from a business perspective, the situation in the banking sector has never been worse. The survey results where published by GRTU Vice President Marcel Mizzi.

The conference was addressed by the Minister for Economy, Investment and small businesses. Hon. Chris Cardona, thanked GRTU for never shying away from challenges faced but also working towards finding a solution for these challenges. He insisted that “we are facing new challenges of new economic times, and there are no easy solutions. Offering support and resolutions for these dynamic challenges is what guarantees our businesses future success.”
The Minister referenced the tight labour market and changing banking policy as two of the new challenges businesses are today facing, as the country has entered a new economic era.

New challenges to businesses nowadays highlighted in the conference, also include their incorporation and adjustment to rapid technological changes, including data management,information security and incorporating a blockchain infrastructure.

Malta Enterprise CEO Kurt Farrugia also addressed the conference and announced that local businesses will benefit from a partnership signed between Malta Enterprise and T-Systems, a Deutsche Telekom subsidiary, whereby together they will be offering blockchain as a service for companies setting up their blockchain project in Malta.

GRTU Malta Chamber of SMEs President Paul Abela said that, while Malta is going through a very particulat time, we are facing challenges that come from having too much success. Paul Abela said that a lot of hard work went into getting Malta to whre it is today, and this hard work was not only done by our policy makers, but a lot of it was at the hand of enterprise owners.

 

 

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