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Mifsud Bonnici assists GWU in improving NetEnt severance offer; 40 jobs saved

VALLETTA, 17th December 2020

Mifsud Bonnici Legal & Advisory has assisted Malta's General Workers’ Union (GWU) in securing several jobs and successfully negotiating an improved severance offer for employees of gaming company NetEnt who were declared redundant following the company’s acquisition by Swedish gaming giant Evolution .

Following consultations with the GWU, Evolution has now accepted to offer alternative employment to at least 40 employees within the coming weeks. Another 60 employees are expected to be absorbed by gaming and financial services operators in Malta, as a testament to the long term sustainability of the sector and the GWU’s commitment to the creation of quality employment.

The GWU, representing the majority of NetEnt employees in Malta, had earlier filed an application before Malta’s Superior Courts, requesting an injunction to prevent the company from implementing any form of redundancy or from terminating any employment. The First Hall, Civil Court had provisionally accepted the union’s injunction.

Thanks to the new agreement reached, the GWU has secured an improvement to the severance offer previously negotiated with an employee representative, and each affected employee will receive an additional payment of EUR 750. Other benefits include better safeguards for employees currently on maternity leave and the availability of the company’s health benefit package to affected employees.

GWU members who are affected by these redundancies, occasioned by restructuring in the gaming sector, overwhelmingly approved the revised severance offer. GWU Secretary General Josef Bugeja stated that “we negotiated intensely and with determination. We saved jobs to the extent that this was possible. We ensured that all those who are being let go are suitably compensated.”

The GWU today withdrew the court injunction, with the legal and industrial dispute being thus resolved.

Negotiations for the GWU were conducted with the support of Aron Mifsud Bonnici (Managing Partner at Mifsud Bonnici Legal & Advisory), who heads the employment law and restructuring department, with additional support from litigation and commercial advisory Partner Christopher Louis Vella.

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