Upcoming changes to triangular employment
New employment laws could make your business responsible for agency and seconded workers—learn what’s changing and how to stay compliant.
A new bill is set to reshape how businesses handle workers from recruitment agencies or secondments, making triangular employment no longer a legal grey area. Businesses that rely on outsourced labour could face more legal responsibilities under collective agreements.
Currently, employment terms for agency or seconded workers are handled directly by their employer. However, under the new bill, if these workers are union members and their work falls under a collective agreement involving your business, you could be held accountable. These workers that you don’t directly employ could have extended bargaining rights and they could bring claims against you, including disputes over pay and conditions. This aligns with the previous update to legislation that allowed employees to include controlling third parties in personal grievance claims.
The changes affect any business using third-party workers. If those workers are union members and covered by a collective agreement, they can enforce that agreement against your business, similar to how personal grievance claims work. The bill is still under review, but if passed, it will bring major changes to employment law.
Key updates include expanding the definition of “eligible employees” to include third party workers, making businesses directly responsible for upholding collective agreements, and increasing liability for breaches. Employers should assess any collective agreements they may be connected to, and seek legal advice to ensure compliance before the bill takes effect.
If you have any questions on this please don’t hesitate to contact us 03 374 9393.
You can find out more about the current employment rights in a triangular employment situation here: https://www.employment.govt.nz/starting-employment/types-of-worker/triangular-employment-situations