The Employment Relations (Triangular Employment) Amendment Act passed on 26 June 2019 and will come into force in 28 June 2020.
From 28 June 2020, employees in a ‘triangular employment’ situation can apply to the Employment Relations Authority (ERA) to add a third party to a personal grievance – if the third party has caused or contributed to any mistreatment.
Employees in a triangular employment relationship are employees of one employer but work for another business or organisation (a third party) e.g. under a labour hire model or via a recruitment agency.
The new law will mean that a third party, i.e. the organisation or business that the worker is actually doing the work for can be added to a personal grievance claim (in cases where the behaviour or actions of the third party contributed to the problem). Under the new law, the employer and the third party could both potentially be responsible for providing remedies to the employee.
Members can contact the RA Helpline team on 0800 737 827 for further information on triangular relationships.