The Superior Court in Malta has issued an injunction against NetEnt, the global provider of casino software and content, blocking the company from making layoffs following its acquisition by Evolution.
Evolution, the global leaders when it comes to live casino software and content, acquired NetEnt in a deal worth around 2.2 billion dollars. Immediately after the deal was sealed, the new management decided to close down NetEnt’s live casino division as the company already has a strong team that creates and develops live dealer games.
That decision put 324 people from NetEnt’s Malta studios out of work. The General Workers Union (GWU), the largest trade union in Malta, declared an industrial dispute and took the matter to court, claiming that the layoff procedure was not correct.
The union claimed that Evolution failed to acknowledge it as an employee representative for planned layoffs. That would be in violation of Malta’s Collective Redundancies Protection of Employment Regulations, which state “the employer proposing to declare the collective redundancy has the duty to notify in writing the employees’ representatives.”
Moreover, Malta also Transfer of Business Protection of Employment Regulations, which set further protective measures for employees following merger-related layoffs.