{"id":224049,"date":"2023-06-28T13:44:12","date_gmt":"2023-06-28T00:44:12","guid":{"rendered":"https:\/\/legalvision.co.nz\/?p=224049"},"modified":"2023-06-28T13:46:22","modified_gmt":"2023-06-28T00:46:22","slug":"triangular-employment-relationships","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/employment\/triangular-employment-relationships\/","title":{"rendered":"What are Triangular Employment Relationships?"},"content":{"rendered":"\n<p>As an employer, you may have come across the phrase \u2018triangular employment relationships\u2019. Put simply, triangular employment is an employment arrangement where employers have employees work for a third party (the controlling party) who controls what work the employees complete. Some examples of triangular employment arrangements include recruitment agencies or labour hire agencies. If you want to start a labour-hire business or start working with a labour-hire company, this article will help you understand the basics and potential risks of triangular employment and how it might work for your business.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What are Triangular Employment Relationships?<\/h2>\n\n\n\n<p>Triangular employment arrangements are where an employer assigns their employee to work with another business (the controlling third party). As a result, there is a distinct relationship between all three parties with each other.<\/p>\n\n\n\n<p>Consider the following diagram. If you are a labour-hire business or employer, you will direct your employees to work for the controlling third party. On the other hand, if you have workers that you have not directly employed but nevertheless work for your business, you have likely hired workers through temping agencies or labour-hire companies.<\/p>\n\n\n\n<div class=\"wp-block-media-text is-stacked-on-mobile is-vertically-aligned-center\" style=\"grid-template-columns:85% auto\"><figure class=\"wp-block-media-text__media\"><img loading=\"lazy\" decoding=\"async\" width=\"795\" height=\"442\" src=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/2\/2023\/06\/28131655\/Screen-Shot-2023-06-28-at-10.16.43-am.png\" alt=\"\" class=\"wp-image-224038 size-full\" srcset=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/2\/2023\/06\/28131655\/Screen-Shot-2023-06-28-at-10.16.43-am.png 795w, https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/2\/2023\/06\/28131655\/Screen-Shot-2023-06-28-at-10.16.43-am-300x167.png 300w, https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/2\/2023\/06\/28131655\/Screen-Shot-2023-06-28-at-10.16.43-am-768x427.png 768w\" sizes=\"auto, (max-width: 795px) 100vw, 795px\" \/><\/figure><div class=\"wp-block-media-text__content\">\n\n<\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">What are Controlling Third Parties?<\/h2>\n\n\n\n<p>Controlling third parties are the businesses where employees perform their day-to-day work. This is usually for a set arrangement or period until a project is completed. Commonly, the third party will have an agreement with the employer to provide workers to the workplace. However, the employer pays the employees for the work they complete, not the controlling third party.<\/p>\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                Otherwise, complete this form, and we will contact you within one business day.\n                    <\/span>\n    <\/div>\n\n    \n\n<div class=\"not-prose flex justify-center text-left gform_input_bg_white    \">\n    <script>\nvar 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Your employment agreements should clearly state:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>the work location, which is subject to change due to different projects or assignments;&nbsp;<\/li>\n\n\n\n<li>hours of work; and<\/li>\n\n\n\n<li>duty description.<\/li>\n<\/ul>\n\n\n\n<p>If you cannot guarantee the worker\u2019s hours, ensure you state this clearly. Ultimately, any potential misunderstandings about the role can be clarified through the employment agreement.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What are Health and Safety Obligations in Triangular Employment Relationships?<\/h2>\n\n\n\n<p>As a temping agency or labour-hire company, you should ensure that your employees are aware of:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>your business&#8217;s <a href=\"https:\/\/legalvision.co.nz\/employment\/how-to-ensure-your-new-zealand-workplace-is-safe\/\">health and safety obligations<\/a>; and<\/li>\n\n\n\n<li>the employee\u2019s obligations to the controlling third party.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>You should make any relevant health and safety documents readily available to your employees, and you should inform your employees when you make any updates.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Are Controlling Third Parties Included in Personal Grievances Claims?<\/h2>\n\n\n\n<p>A recent change in the law has allowed employees to apply to the Employment Relations authority to include the host employer or the \u201ccontrolling third party\u201d in a <a href=\"https:\/\/legalvision.co.nz\/employment\/what-is-a-personal-grievance-in-new-zealand\/\">personal grievance claim<\/a>. Previously, employees could only bring personal grievance claims against their employers, not any controlling third party or host employers.\u00a0<\/p>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p>Hence, as an employer, you can also include controlling third parties to a personal grievance. However, this will be less common as employees tend to claim personal grievances alone.<\/p>\n<\/div>\n\n\n\n<p>Nevertheless, to join a controlling third party to a personal grievance, the following criteria apply:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>the controlling third party must be made aware of the personal grievance by either party to the triangular relationship within 90 days;<\/li>\n\n\n\n<li>there is an actual case for the controlling third party to be included as part of the personal grievance; and<\/li>\n\n\n\n<li>there is an actual case in which the controlling third party\u2019s actions contributed to the personal grievance.<\/li>\n<\/ul>\n\n\n    <div class=\"my-7 lg:my-10 border-y-2 border-gray-100 py-7 lg:py-10 flex flex-col sm:flex-row items-start gap-10\">\n                    <img decoding=\"async\" class=\"w-52 mx-auto my-0! rounded\" src=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/2\/2021\/12\/21173210\/new-employee-onboarding-checklist-onsite-nz.jpg\" alt=\"Front page of publication\"\n                 loading=\"lazy\" width=\"208\" height=\"298\">\n                <section>\n            <div class=\"text-2xl font-bold\">New Employee Onboarding Checklist (On-site)<\/div>\n            <div class=\"body-text\">\n                <p>Help new employees get off to a great start with our free New Employee Onboarding Checklist.<\/p>\n            <\/div>\n            \n\n<a href=\"https:\/\/go.legalvision.co.nz\/new-employee-onboarding-checklist-onsite-nz.html\" class=\" block px-5 py-3.5 max-w-fit bg-orange button__hover transition rounded text-white font-bold text-lg no-underline uppercase leading-tight text-center\" target=\"\" rel=\"\">Download Now<\/a>        <\/section>\n    <\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\">Key Takeaways<\/h2>\n\n\n\n<p>Triangular employment is a standard system in New Zealand, especially within the construction industry, to fill in workers where needed. If you are an agency, ensure that you have a well-written employment agreement for your employers, which details the agreed hours, duties and work location. If you want to start a labour-hire business or may want to hire workers from a labour-hire business, ensure that you have your health and safety policies in place to protect all your workers. As a controlling third party, you will need to be aware that the recent change in legislation will mean that workers can claim a personal grievance to include controlling third parties.&nbsp;<\/p>\n\n\n\n<p>If you want to know more about the appropriate employment agreement for your labour hire business, our experienced<a href=\"https:\/\/legalvision.co.nz\/employment-lawyers-lp\"> employment lawyers<\/a> can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on <a href=\"tel:+64800005570\" class=\"AVANSERnumber dynamic-number\">0800 005 570<\/a> or visit our <a href=\"https:\/\/legalvision.co.nz\/membership\/\">membership page<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Frequently Asked Questions<\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1687912747677\"><strong class=\"schema-faq-question\"><strong>Who is involved in triangular employment relationships?<\/strong><\/strong> <p class=\"schema-faq-answer\">The employer, the employee\/worker and the controlling third party where the worker will be assigned to work are involved in triangular employment relationships.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1687912766600\"><strong class=\"schema-faq-question\"><strong>Can employees claim a personal grievance against the controlling third party?<\/strong><\/strong> <p class=\"schema-faq-answer\">Yes. However, there must be an actual case for why they are included and their actions relate to the personal grievance claim.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1687912788335\"><strong class=\"schema-faq-question\"><strong>What are controlling third parties?<\/strong><\/strong> <p class=\"schema-faq-answer\">Controlling third parties have a contractual relationship with the employers. The employers provide workers to work for the controlling third parties.<\/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\/224049\" \/>            <input value=\"https:\/\/legalvision.co.nz\/employment\/triangular-employment-relationships\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"What are Triangular Employment Relationships?\" 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>As an employer, you may have come across the phrase \u2018triangular employment relationships\u2019. Put simply, triangular employment is an employment arrangement where employers have employees work for a third party (the controlling party) who controls what work the employees complete. Some examples of triangular employment arrangements include recruitment agencies or labour hire agencies. If you<a href=\"https:\/\/legalvision.co.nz\/employment\/triangular-employment-relationships\/\">Continue reading <span class=\"sr-only\">&#8220;What are Triangular Employment Relationships?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13387,"featured_media":215630,"comment_status":"closed","ping_status":"closed","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":"202564,216870,1235,208071,220035,215810","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[5],"tags":[108,116,308,1928],"class_list":["post-224049","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employment","tag-employment-agreements","tag-health-and-safety","tag-personal-grievance","tag-triangular-employment-relationships"],"acf":[],"yoast_head":"<!-- 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However, there must be an actual case for why they are included and their actions relate to the personal grievance claim.","inLanguage":"en-NZ"},"inLanguage":"en-NZ"},{"@type":"Question","@id":"https:\/\/legalvision.co.nz\/employment\/triangular-employment-relationships\/#faq-question-1687912788335","name":"What are controlling third parties?","acceptedAnswer":{"@type":"Answer","text":"Controlling third parties have a contractual relationship with the employers. The employers provide workers to work for the controlling third parties.","inLanguage":"en-NZ"},"inLanguage":"en-NZ"}]}},"_links":{"self":[{"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/posts\/224049","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/users\/13387"}],"replies":[{"embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/comments?post=224049"}],"version-history":[{"count":5,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/posts\/224049\/revisions"}],"predecessor-version":[{"id":224056,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/posts\/224049\/revisions\/224056"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/media\/215630"}],"wp:attachment":[{"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/media?parent=224049"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/categories?post=224049"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/tags?post=224049"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}