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Personal Grievance in “Triangular” Employment

A new law passed recently by Parliament expands the ability of workers in triangular employment situations to raise personal grievance claims.

An example of a “triangular” employment situation is where you as an Employer engage a person to work for you through a third party such as a labour hire company.

As it stands, an employee can only bring a personal grievance against their employer. For people in “triangular” employment situations such as the example above, this limits their ability to raise a personal grievance, as often the actions that lead to their claim are those of the controlling third party they are working with (you the employer), rather than the person actually employing them (the labour hire company).

The new law will allow either the employee or the employer to apply to the Employment Relations Authority to join a third party to a personal grievance claim, and for remedies to be apportioned to the responsible parties.

This is something that your business should be fully aware of particularly where you use third party relationships for the supply of labour.

The new law will be enacted shortly and is likely to come into force within 12 months.

To understand more on this new legislation or any other HR or employment matters contact The HR Guy on:

M: 021 543 510

E: dylan@thehrguy.nz

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