{"id":1008,"date":"2020-12-09T05:57:05","date_gmt":"2020-12-09T05:57:05","guid":{"rendered":"http:\/\/nz.legalvision.com.au\/?p=1008"},"modified":"2021-02-26T17:47:55","modified_gmt":"2021-02-26T04:47:55","slug":"start-labour-hire-company-new-zealand","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/business-structures\/start-labour-hire-company-new-zealand\/","title":{"rendered":"How to Start a Labour Hire Business in NZ"},"content":{"rendered":"\n<p><span style=\"font-weight: 400\">The labour hire industry has gained momentum in New Zealand in the last decade due to its many benefits for businesses. However, it has also&nbsp; had a bad reputation to the negative public perception that labour suppliers do not treat workers fairly. If you are considering starting a labour hire business in New Zealand, it is crucial to understand your legal obligations. This way, you can create strong agreements with your clients and workers, and avoid potential disputes. This article will explain:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><span style=\"font-weight: 400\">what a labour hire business is;<\/span><\/li><li><span style=\"font-weight: 400\">how to get accredited in New Zealand; and<\/span><\/li><li><span style=\"font-weight: 400\">how to draft y<\/span>our legal<span style=\"font-weight: 400\"> agreements.<\/span><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">What is a Labour Hire Business?<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">U<\/span>nlike a recruitment company, a<span style=\"font-weight: 400\"> labour hire business (also known as a triangular employer) directly employs workers on behalf of other organisations (hosts businesses) when they need extra s<\/span>taff<span style=\"font-weight: 400\">. As a result, i<\/span>t<span style=\"font-weight: 400\"> develops a working relationship with their candidates or workers. It also is responsible for ensuring that the host businesses provide workers with their <a href=\"https:\/\/legalvision.co.nz\/employment\/employment-rights\/\">employment rights<\/a>.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">A recruitment company, on the other hand, receives a specific job description from the hiring organisation and looks for suitable candidates. Therefore, when the hiring organisation employs the candidate, they become the employer, and the relationship between the recruitment company and the candidate ends.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">The Merits of a Labour Hire Business<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">Some of the challenges faced by host businesses include:&nbsp;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">not having adequate HR or payroll in-house;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">struggling to deal with unions;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">needing to resource short term projects; and<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">having seasonal demand.&nbsp;<\/span><\/li><\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">A labour hire business generally addresses these challenges by offering:&nbsp;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">access to a broader pool of talent;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">access to on-call experts;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">people for projects with target end dates;&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">access to international skills; and&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">temp to permanent labour.<\/span><\/li><\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">These solutions offer many benefits to host businesses, including:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">improving their productivity and cash flow;&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">saving time recruiting;&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">reducing fixed overheads, compliance and administration costs; and&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">building extra capacity in their organisation.&nbsp;<\/span><\/li><\/ul>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+64800005570\" class=\"not-prose\">0800 005 570<\/a> for urgent assistance.\n                <br>\n    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However, you may want to consider voluntary accreditation, as this offers some benefits, such as the ability to get your migrant employees (including lower-skilled roles) a three-year visa.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">How to Obtain Y<\/span>our<span style=\"font-weight: 400\"> Accreditation<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">If you want to obtain accreditation for your labour hire business, you need to meet a series of requirements, including:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">having a good history of compliance with employment law and <\/span><a href=\"https:\/\/www.immigration.govt.nz\/\"><span style=\"font-weight: 400\">Immigration New Zealand<\/span><\/a><span style=\"font-weight: 400\">;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">satisfying specific industry or regulatory standards; and<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">being in a financially sustainable position.<\/span><\/li><\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">In addition to this, you need to be willing to train and upskill New Zealanders and increase wages and conditions for workers. You can find out more information on the Immigration New Zealand website, including how much it costs. Your accreditation lasts for twelve months.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Y<\/span>our Employment<span style=\"font-weight: 400\"> Agreements<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">Due to the nature of the relationship between a labour hire business, host business and candidate or worker, it is crucial to outline, in as much detail as possible, the legal obligations of each party. For example, you should define:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><span style=\"font-weight: 400\">how the host business will request workers; and&nbsp;<\/span><\/li><li><span style=\"font-weight: 400\">who will take on insurance and what it will cover.<\/span><\/li><\/ul>\n\n\n\n<div class=\"box box--info box--icon\">\n<p><i><span style=\"font-weight: 400\">Tip: Host businesses often require complete discretion for when and how long they engage a worker. This allows them to request an alternative worker if they have any issues with the worker.<\/span><\/i><\/p>\n<\/div>\n\n\n\n<p><span style=\"font-weight: 400\">If you need to draft a labour hire <a href=\"https:\/\/legalvision.co.nz\/employment\/employment-agreement\/\">employment agreement<\/a>, the <a href=\"https:\/\/www.employment.govt.nz\/starting-employment\/employment-agreements\/employment-agreement-builder\/\" target=\"_blank\" rel=\"noreferrer noopener\">Employment New Zealand\u2019s agreement builder<\/a> can be an excellent place to start. However, due to the strict regulations surrounding t<\/span>his<span style=\"font-weight: 400\"> industry in New Zealand (such as the <\/span><i><span style=\"font-weight: 400\">Triangular Employment Amendment Act)<\/span><\/i><span style=\"font-weight: 400\">, you may want to consider getting them reviewed by an employment lawyer.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Key Takeaways&nbsp;<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">As a labour hire business, you directly employ workers on behalf of other organisations. <\/span>In New Zealand, y<span style=\"font-weight: 400\">ou are not required to obtain any accreditation or licences to run y<\/span>our<span style=\"font-weight: 400\"> business. This is unless you are planning to operate in the construction sector in the Canterbury region. If you want to obtain accreditation from Immigration New Zealand, you need to meet a series of requirements. You also need to renew your accreditation every t<\/span>welve<span style=\"font-weight: 400\"> months. Your labour hire agreement should detail how the host business engages your business and how you supply workers to them. If you need assistance setting up y<\/span>our<span style=\"font-weight: 400\"> business or drafting y<\/span>our legal<span style=\"font-weight: 400\"> agreements, contact <a href=\"https:\/\/legalvision.co.nz\/employment-lawyers-lp\">LegalVision\u2019s employment lawyers<\/a> on 0800 005 570 or fill out the form on this page.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">FAQs<\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1606880228344\"><strong class=\"schema-faq-question\"><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong>What is a labour hire company?<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong> <p class=\"schema-faq-answer\">A labour hire business (also known as a triangular employer) directly employs workers on behalf of other organisations (hosts businesses) when they need extra labour. As a result, it develops a working relationship with their candidates or workers.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1606880258379\"><strong class=\"schema-faq-question\"><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong>Does a labour hire business need accreditation in New Zealand?<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong> <p class=\"schema-faq-answer\">You do not need to obtain any accreditation or licences to operate, unless you are planning to work in the construction sector in the Canterbury region.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1606880271477\"><strong class=\"schema-faq-question\"><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong><strong>What is a labour hire agreement?<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong> <p class=\"schema-faq-answer\">Due to the nature of the relationship between a labour hire business, host business and candidate or worker, it is crucial to outline, in as much detail as possible, the legal obligations of each party in your agreement. <\/p> <\/div> <\/div>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"3bc3beddae\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/1008\" \/>            <input value=\"https:\/\/legalvision.co.nz\/business-structures\/start-labour-hire-company-new-zealand\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"How to Start a Labour Hire Business in NZ\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The labour hire industry has gained momentum in New Zealand in the last decade due to its many benefits for businesses. However, it has also&nbsp; had a bad reputation to the negative public perception that labour suppliers do not treat workers fairly. If you are considering starting a labour hire business in New Zealand, it<a href=\"https:\/\/legalvision.co.nz\/business-structures\/start-labour-hire-company-new-zealand\/\">Continue reading <span class=\"sr-only\">&#8220;How to Start a Labour Hire Business in NZ&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13217,"featured_media":809,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[4],"tags":[24,25,117,118,119],"class_list":["post-1008","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-structures","tag-startup","tag-small-business","tag-labour-hire","tag-labour-hire-accreditation","tag-labour-hire-agreement"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast 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