iGaming giants NetEnt and Evolution Gaming Group have been accused of breaching local laws on collective redundancies by the General Workers Union (GWU).

Evolution has acquired NetEnt following regulatory approval, which led to the mass redundancies.

On Sunday, the GWU said that both companies failed to acknowledge the union as employee representatives for the purpose of collective redundancies under the Collective Redundancies (Protection of Employment) Regulations.

The GWU went on to say that both companies refused to provide a statement with the reasons behind the redundancies, the exact number of employees being made redundant, the number of employees normally employed, the criteria for the selection of the employees to be made redundant, details regarding redundancy payments due and the period over which redundancies are to be effected.

tHE GWU said the companies are planning to lay off over 300 people, without any effort to avoid redundancies.

WhosWho.mt spoke to several employees at NetEnt and has been reliably informed that between 300-325 staff members are being made redundant.

The GWU has reserved the right to take industrial action.

A spokesperson for Evolution told WhosWho.mt last week that the Qormi-based Live Casino studio operated by NetEnt would be shut down, and thus people working directly within the studio “are at risk of redundancy”. It also confirmed that formal processes had been launched against those being made redundant.

The Government of Malta has, in response to the restructuring by Evolution, confirmed that a dedicated helpline has been set up and that the Economy Ministry would be assisting those whose employment was terminated with immediate effect to find other work within the gaming industry.

Just three months ago, NetEnt had announced it was expanding its studio with new blackjack tables, thanks to heightened demand.

Evolution Gaming submitted its all-share bid to acquire NetEnt in June, valuing the company at around €1.8 billion.