Posted on: Dec 21, 2018

21 December 2018: The Employment Relations (Triangular Employment) Amendment Bill was introduced to Parliament in February 2018 and on 17 December 2018 the Education and Workforce Committee (the EWC) released its report on the proposed Bill.

The purpose of the Bill was to protect the rights of workers who are employed in triangular employment situations, which occurs when a worker is employed by one employer, but work under the control and direction of another business.

The Bill as introduced would have made two main changes to the Employment Relations Act 2000:

  • It would give employees the right to be covered by a Collective Agreement which covers a controlling third party’s business; and
  • Provide a framework for the employee to raise a personal grievance with their employer and a mechanism for the controlling third party to be joined to the proceedings.

The EWC have recommended some changes to the Bill. Of significance they have recommended:

  • Amending the definitions within the Bill to include the employee, employer and controlling third party. This was considered necessary to ensure there was clarity that there was one employer.
  • Removing the right for an employee to be covered by a collective agreement between the controlling third party and its employees. The EWC considered that this provision added too much complexity into the labour hire model, which would make it too difficult to administer, particularly when one employee is working for multiple controlling third parties.
  • The addition of a process to follow to provide a framework for adding the controlling third party to a personal grievance. Under the recommendation, a controlling third party could be added to proceedings by either the employee or employer within 90 days of the date the personal grievance was first raised or by agreement if outside of the 90 day period.

We will keep you updated on the progress of this Bill, however, if you would like any advice on how this may impact your business, please don’t hesitate to contact us.



Disclaimer

This article, and any information contained on our website is necessarily brief and general in nature, and should not be substituted for professional advice. You should always seek professional advice before taking any action in relation to the matters addressed.