Employment Update – Week 4, May

Updated: Jun 24, 2019

Our weekly update on ER issues, changes and important updates:


Bill affecting labour hire arrangements closer to becoming law

The Employment Relations (Triangular Employment) Amendment Bill passed its second reading in Parliament on 3 April 2019.

The Bill proposes to extend protections to employees employed under labour hire arrangements, otherwise known as “triangular employment relationships”. On first introduction, the Bill proposed two key changes:

  • to ensure that employees who are contracted out by one employer to work for another organisation (the host organisation) are able to be employed under a collective employment agreement, and

  • that such employees may join the host organisation as a party to any personal grievance action (such joinder requires the leave of the Authority or the Court).

The Education and Workforce Committee recommended removing the first change on the basis that it would require workers to be bound by the same collective agreement as the employees of the host organisation and in turn introduce considerable complexity to the labour hire model.

The Bill now focuses on the second proposed changes of allowing employees to join the host organisation to a grievance action.

The Education and Workforce Committee recommended that the legislation come into effect on a date appointed by the Governor-General or 12 months after the date of Royal assent, whichever is earlier.

The Bill has yet to pass through the Committee of the whole House stage and its third reading before it can become law.

The Employment Relations (Triangular Employment) Amendment Bill can be obtained at www.legislation.govt.nz.

Changes to KiwiSaver

A number of changes to KiwiSaver were legislated on 18 March 2019. Most of the changes came into effect on 1 April 2019, with some changes coming into effect on 1 July 2019.

The changes which came into effect on 1 April 2019 include the following:

  • A name change has been made to contributions holidays such that they are now called “savings suspensions”.