The European Commission is taking Malta to the EU’s top court over its recruitment system for port workers, which it claims gives unfair preference to relatives of existing employees.

Under the current setup, companies must hire exclusively from a Port Workers Register that only admits new names when someone retires, dies, or is medically unfit. The Commission says this creates a “closed circle” that restricts access to jobs and breaches EU rules on free movement and fair competition.

The case follows two years of warnings, including a formal notice in 2022 and a reasoned opinion in 2023. Malta has pushed back throughout, defending the system as a time-bound transitional measure that addresses legacy discrimination from earlier reforms after EU accession.

The government argues the law is not preferential, but a necessary fix given Malta’s reliance on maritime trade and its need for continuity in port operations. Still, the Commission insists the regime violates core EU principles on freedom of movement, establishment, and access to work.

If Malta loses the case, it may be forced to overhaul its hiring rules and open up port jobs to a broader pool of workers, regardless of family connections or existing ties to the register.

The government said it will continue defending its position at the Court of Justice of the European Union, adding that the framework is “legitimate and proportionate” given Malta’s specific economic and geographic realities.

A ruling could have wider implications for how other small or insular member states manage strategic sectors like ports, and whether legacy systems from pre-EU times still stand up to scrutiny under modern European law.

The case is expected to be heard in the coming months.