On 28 June 2020, the Employment Relations (Triangular Employment) Amendment Act 2019 came into effect. Triangular employment arrangements involve three parties. This is when an employee is employed by one employer (the agency) but is working under the direction or control of another organisation (the controlling third party) for their day-to-day work. Common examples include ‘temping’, labour-for-hire situations, or secondments. The recruitment industry (temping, contracting, labour hire) will be impacted the most by this legislation, so it is important for recruitment firms to upskill their teams on this legislation.

Here are some ways to be prepared;

  1. A well written employment agreement helps the employee and employer to know what is expected from them and what they are entitled to.
  2. A well-documented grievance process. This can be included in your employment agreement. Covered in your employee and company onboarding and induction process.
  3. Training for your leaders and recruitment consultants on the legislation and to understand what situations (e.g. bullying, harassment, or discrimination) can lead to a grievance claim.
  4. Strong relationships with your clients and workforce.
  5. Act quickly when you suspect that there may be an issue brewing.

The law allows employees in triangular employment arrangements to include a controlling third party to a personal grievance they have with their employer, if the third party has caused or contributed to the employee’s mistreatment. This includes cases of bullying, harassment, or discrimination by a controlling third party. In this situation, both the controlling third party and employer could be responsible for providing remedies to the employee.
For more detail on what these changes mean for your business. Please click here.

More information

Please call Will Allan on 021 94 55 94 or email will@hellomonday.co.nz if you need to have a quick chat to find out what your obligations are as an employer under these pieces of legislation. Will is only too happy to help you.