Employment Relations (Triangular Employment) Amendment Act 2019

Employer working with sub-contracting agencies? All employers hiring temp agency workers will need to be aware of new changes that took effect under the Employment Relations (Triangular Employment) Amendment Act on June 28th.   

The Act gives additional rights to employees who are in a triangular employment relationship. A triangular employment relationship consists of an employee who is employed by a business or organisation but engaged to work under another company’s direction or control.

For example, a recruitment agency employs a worker and then sub-contracts them to another company for temporary work. The recruitment agency remains the primary employer, but the other company becomes a ‘controlling third party’. This is because the third party has control or direction over the agency’s employee as if they were directly employed with the other company.

The biggest change employers need to be aware of when using temporary workers, is the additional legal rights the employee has if they’re within Triangular Employment. For example, an employee will now be able to raise a personal grievance with the controlling third party company, as well as their employer, e.g. recruitment agency.

The Bill adds to current legislation by giving employees and employers the right to apply to the Employment Relations Authority to have the controlling third party joined to personal grievance proceedings.

For more information on the Act click here. Alternatively to speak to a consultant about HR solutions for your organisation call (03) 366 4034 or email info@eqconsultants.co.nz