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ARTICLE · 30 JULY 2019

Employees rights under triangular employment relationships expanded

New law enables employees to raise a personal grievance against anyone that can direct or control the employee's day-to-day work.

New ZealandEmployment and HR

Apparently, we live in the 'age of flexibility' where the need for flexibility is said to be the driving force behind the new economy, and in turn, driving new policies and regulatory approaches.

New Zealand's response to the age of flexibility is a new law that will come into force on 27 June 2020 which will enable employees to raise a personal grievance against any organisation that has the ability to direct or control the employee's day-to-day work.

What is a triangular employment relationship?

This is where an employee is employed by one employer, but another organisation has the ability to direct or control the employee's day-to-day work.

This is common where a parent company can direct work for employees of a subsidiary company, or in a labour hire model, or through a recruitment agency. For example:

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