Reference year 2019
1Scheme history
The 'Work-Based Learning and Apprenticeships Act' (Cap. 576) was established on 6th March 2018 incorporating past schemes, namely the Technician Apprenticeship Scheme and the Extended Skill Training Scheme.
The state-run Employment and Training Corporation (ETC), today known as Jobsplus [as enacted in Part III of the Employment and Training Services Act (Cap.343)], managed VET in the form of active labour market policies (ALMP) and other services for the unemployed. Until 2014, this organisation was also responsible for the organisation of apprenticeship - MCAST took most of its functions after 2014. As youth unemployment is not the main problem in Malta, apprenticeships are seen as a tool for addressing the skills gap and difficulties to matching skills to jobs.
2Beneficiaries
As per Schedule 2 B. (3) of the 'Work-basked Learning and Apprenticeship Act' (Cap. 576), "apprentices shall be regulated in terms of the Employment and Industrial Relations Act (Cap. 452), the Young Persons (Employment) Regulations (S.L. 452.92), if applicable, and the Social Security Act (Cap. 318)". The minimum age is indicated in Young Persons (Employment) Regulations (S.L. 452.92) as not "lower than the minimum age at which compulsory full-time schooling ends". Furthermore, as defined by the Education Act (Cap. 327) a person shall be "deemed to be of compusory school age until he has not attained the age of sixteen years or has not yet completed the last year of secondary school."
As per information provided by MCAST the average age is 19 years (as at May 2019).
As per information provided by MCAST, by the end of academic year 2018/19, there were 1325 learners with an active contract with an employer.
3Qualifications
MQF levels 3 & 4. The 'Work-Based Learning and Apprenticeship Act' allows for apprenticeships at higher levels.
Apprenticeships are not included in the ISCED 2011 mapping but they can lead to qualifications at ISCED levels 3 (ISCED-P 2011 level 352, 353, 354) and 4 (ISCED-P 2011 453, 454).
School-based VET and apprenticeships exist in parallel. Apprentices in colleges need to achieve the same volume of learning outcomes as their peers in school-based programmes studying for the same qualifications.
Apprenticeship training leads to a formal VET qualification, specifically the MCAST award (Diploma at MQF 3 or Advanced Diploma at MQF 4). (Refer to MCAST prospectus for academic year 2019/2020 accessed through the following link: https://www.mcast.edu.mt/wp-content/uploads/Prospectus-19-20-Digital.pdf)
MCAST Foundation Level courses (MQF / EQF level 3) allow progression to further education at the MCAST technical level (level 4), which allows for progression to the MCAST higher education level (starting from level 5). However, there is still a great barrier for students from VET to move to higher education, mainly the University of Malta. Any arrangements depend on individual agreements.
4Governance
As per Article 26. (3) in the 'Work-Based Learning and Apprenticeships Act' (Cap. 576), "the Minister may direct any person or any department, agency, corporation or authority established by law ... to ensure the proper implementation."
The National Skills Council which was established on 9th August 2016 (S.L. 327.547), will be putting forward a proposal to the Maltese cabinet to be established as the organisation which will co-ordinate, oversee and quality assure the co-ordination of this scheme.
The National Skills Council which was established on 9th August 2016 (S.L. 327.547), is governed by a Board which include members representing both the education and the employment sectors. The representatives include members from University of Malta, MCAST, Jobsplus Corporation, Institute for Tourism Studies, Malta Chamber of Commerce, Enterprise and Industry, Malta Enterprise, civil society, lifelong learning specialists, the Permanent Secretary of the Ministry for Education and another 4 persons who are deemed to possess leadership qualities and have an understanding of education and the labour market. The functions of this Council is to: (a) involve representatives of the labour market in the planning of labour market preparation; (b) study, propose and plan strategies and training to reduce shortages in labour skills, improve skills and meet market demands; (c) involve stakeholders in the setting of strategiv direction of relevant education and training; (d) liaise with educational institutions; (e) perform any other function as may be assigned to it by the Minister.
In the future months the National Skills Council will be forwarding a proposal to the Maltese cabinet to be established as the organisation which will co-ordinate, oversee and quality assure the co-ordination of this scheme.
5Training at the workplace
In-company training is embedded in MCAST programmes, otherwise it is not considered an apprenticeship.
As per Article 9 (d) and (e) in Schedule 2 of Cap. 576 which article is related to Training Programmes of apprenticeship schemes, "start, end date, duration and hours of the work-based period" and "hours of work-based learning" are established in the training agreement between the VET provider, employer and the apprentice.
Substantial work has been done to link VET courses to occupations.
As per 'Work-Based Learning and Apprenticeship Act' (Cap. 576) the employer enters into a tripartite agreement togetherwith the VET provider and the learner which agreement includes a defined the training programme plan.
Refer to the 'Work-Based Learning and Apprenticeship Act' (Cap. 576).
Participation in the apprenticeship scheme is voluntary and MCAST uses a posiitve approach by giving a label to those employers who have apprentices.
According to the Article 49 of the 'Employment and Training Services Act' (Cap. 343), "any person who contravenes or fails to comply with any provision of an agreement of apprenticeship or traineeship or any provision of a scheme which is binding up him <...> shall be guilty of an offence agains this Act". Article 51 stipulates that the general penalty for a person guidlty of an offence against this Act is a fine of not less than EUR 46.59 and not more than EUR 931.75.
6Contract and compensation
According to the 'Work-Based Learning and Apprenticeship Act' (Cap. 576) the learner has the statutory rights of a student enrolled by the VET provider. In addition, according to the 'Employment and Training Services Act' (Cap. 343) the learner has the statutory of an employee recruited by the employer.
The Work-Based Learning and Apprenticeship Act defines the general conditions for the training agreements between the employer and the apprentice. The agreement contains information which is regulated in terms of the Employment and Industrial Relations Act (Cap. ), the Young Persons (Employment) Regulations (S.L. 452.92), if applicable, and the Social Security Act (Cap. 318) with regards and not limited to: probation period; work-based learning hours; overtime; cost of living increases; occupational health and safety; vacation leave and sick leave; maternity leave, parental leave and leave for urgent family reasons; public holidays falling on weekly day of rest; wages to be paid at regular intervals; payment of statutory bonuses; rights to social security benefits; hours a learner spends with the sponsor shall be considered as the hours spent on the work-based learning componenet of the training programme as defined in the training programme plan.
The learning agreement is drawn up in accordance with the provisions of the 'Work-Based Learning and Apprenticeship Act' (Cap. 576).
The formal agreement is registered at the MCAST or the educational institution offering the accredited training programme incorporating an apprenticeship opportunity. Furthermore, the employer must register this formal agreement with Jobsplus in accordance to Article 32 of the 'Employment and Training Services Act' (Cap 343).
The apprentice receives a wage from the employer and an allowance from the State as established in the 'Work-based Learning and Apprenticeship Act (Cap. 576). As per Article 14 (3) (a) of Cap.576, the employer is obliged to "pay a renumeration to the learner in accordancw with the rate established by relevant legislation, for the duration of the time the learner spends at the place of work as part of the work-based learning componenet, as predefined in the training plan."
Then, the allowance funded by the State is stipulated in the same Act as per Article 15, "(a) learners may be eligible to benefit from student's maintence grant in terms of the Student Maintenance Grant Regulation; (b) learners on apprenticeship programmes have the right to an income equivalent to the national minimum wage per hour for the hours spent at the workplace as stipulated in the training programme plan. The income per hour is calculated as the income derived from the [employer] and from the student maintenance grant".
MCAST apprentices receive remuneration from their sponsor and Students' Maintenance Grants. Whilst working with their sponsor, all MCAST students doing an apprenticeship always receive remuneration directly from their sponsor according to the hours worked. On the other hand, Students' Maintenance Grants are calculated as follows:
October to June (covering lecture attendance)
a. Stipend rates of €89.40 every four weeks
b. Initial Grant (credited once after the students confirms the online application
c. Top-up Stipend Rates *
July to September
a. Summer Special Stipend rates of €235.06 every four weeks
b. Top-up Stipend Rates *
*Top-up Stipend Rates vary greatly according to the level, year and course being followed and according to the number of days the student is attending lectures at MCAST.
Apprentices may benefit from a flat rate of 15% as per conditions indicated by the Commissioner for Revenue in the following website
https://cfr.gov.mt/en/inlandrevenue/FAQs/Pages/Income%20from%20Part%20T…
7Financing and incentives
The employer pays wages, and the governemnt pays a maintenance grant.
As Article 14. (3) (a) of the 'Work-Based Learning and Apprenticeship Act' the employer has to, "Pay a remuneration to the learner in accordance with the rate established by the relevant legislation, for the duration of the time the learner spends at the place of work as part of the work-based learning component, as pre-defined in the training programme plan." The company pays a wage to the apprentice and half the annual statutory bonus payable by the employer [1]. Companies also cover indirect costs (materials and tutors, who are high level managers and/or experienced workers). The government has a tax rebate for employers who take apprentices (however, employers are not really motivated by it to take on apprentices). The training of the apprentice is paid partly by the employer who gives the apprentice some payment as well as government who gives a scholarship to the apprentice, even during studies. ____________________________________
[1] Employers in Malta are obliged to pay annual statutory bonuses to every full-time employee or a prorata amount in the case of part-time employees that work at least 20 hours per week. The full statutory bonus payable every six months is as follows: end of June: EUR 135.10; from 15 to 23 December: EUR 135.10. Hence apprentices are entitled to get half of this and employers are legally obliged to pay. https://dier.gov.mt/en/employment-conditions/wages/Pages/Bonus-and-week…
Government supports companies and employers for apprenticeships by contributing directly to the apprentice's wage making expenses less than what a normal employee would cost. In 2014, government introduced financial incentives in terms of tax rebates ofr each and every apprenticeship offered by employers. This tax rebate amounted to EUR 1200 for each apprenticeship as per INCOME TAX ACT (CAP. 123) Deduction (Apprentices and Work Placements) Rules, 2014 (L.N.179 of 2014).
The government maintenance grant covers both school and time spent in company. The employer's part of the wage is paid only for the time spent at the place of work.