Employers have not been paid promised refunds for contributions into the Maternity Leave Fund as a result of a “lengthy administrative process”, it has emerged.

The Maternity Leave Fund Board said that it wanted to ensure “full transparency” and this had led to no refunds being issued yet, despite employers paying their contributions for 10 months.

The MEA's Joseph Farrugia isn't sold on the Maternity Board's explanation. Photo: Matthew Mirabelli

Since July, employers have been contributing the equivalent of 0.3 per cent of the basic pay for every employee, irrespective of their gender, to build up the fund. They should then be refunded for the wages paid to employees who take the 14-week maternity leave they are entitled to.

Malta Employers Association director general Joseph Farrugia insisted, however, that this was not a valid reason to delay the repayments.

“Saying that the hold-up occurred because the board had to ensure there was full transparency makes no sense. Shouldn’t there always be transparency?” Mr Farrugia told this newspaper yesterday.

Saying the hold-up occurred because the board had to ensure there was full transparency makes no sense. Shouldn’t there always be transparency?

Last week, the MEA called on the government to address the issue, saying that despite the legislation having been in place for close to a year, employers were still in the dark as to when they would be receiving the refunds as it seemed there was no system in place yet.

Employers have been complaining about the fact that until they were issued refunds, they were paying double: paying their employees fully during maternity leave, as well the percentage going into the fund.

The Finance Ministry and the board informed the association that there were some “pending issues” that needed to be tackled before any refunds were issued.

According to a board spokesperson, these issues have been resolved, however Mr Farrugia insisted that the MEA had not yet received any such information and was still waiting on direction as to how the refunds would be issued.

The spokesperson for the Maternity Leave Fund board added that the refunds would be issued soon but gave no indication of what this process would entail.

“The application form for reimbursement should be uploaded in the coming weeks and payment should be effected as soon as payment of contributions by applicants and amount due is verified,” the spokesperson said.

Mr Farrugia said the MEA was giving the board until next month to issue the refunds, insisting that the association would be taking all the necessary action if no refunds were issued by then.

“We have been very lenient and have given the board until June to get everything up and running.

“But this should never have been the case and administrative processes should have been laid out well ahead of the legislation coming into force last year,” he said, adding that the only information given to the association was that the board was in the process of designing the claim form.