The government is terminating the contract of one of its contractors - Kavallier Security Services - after a court determined that it did not observe employment regulations, , Finance Minister Tonio Fenech said today.

He said the second placed bidder in the call for tender would be selected in 30 days to take over the work if the workers of the first contractor were taken on. 

Mr Fenech said this should serve as a warning to all those bidding for government contracts that the government would not tolerate a situation where workers were employed in precarious jobs by contractors engaged by the government.

He said the requirement for the second company to take the workers of the first was being made in order to protect and encourage workers to report abuse.

He warned that in any such cases, the government would not issue warnings, but move to terminate contracts.