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69B: Interpretation
or “This section explains the meaning of important words and ideas used in the rules about keeping your job when your work changes.”
You could also call this:

“This explains how work can be moved between different people or companies.”

You need to understand three important terms in employment law: contracting in, contracting out, and subsequent contracting.

Contracting in happens when a company (let’s call it Company A) has been getting work done by another company (Company B) and its workers. If the agreement between these companies ends, and Company A decides to do the work themselves, that’s contracting in.

Contracting out is when a company (Company A) that has been doing work with its own employees decides to hire another company (Company B) to do that work instead.

Subsequent contracting occurs when Company A has been getting work done by Company B, but then decides to switch to a new company (Company C) to do the same work.

These definitions apply even if the work is done by subcontractors or their employees. It doesn’t matter if the work has been contracted out before or if it’s the first time it’s happening.

When we talk about the work in these situations, we mean work that Company A would normally do themselves or as a contractor for someone else.

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Next up: 69CA: Exempt employer

or “A special type of boss who doesn't have to follow some rules about keeping workers when a business changes”
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Part 6A Continuity of employment if employees' work affected by restructuring
Specified categories of employees

69CMeaning of contracting in, contracting out, and subsequent contracting

  1. In this subpart, unless the context otherwise requires, contracting in means a situation where—

  2. a person (person A) has an agreement with another person (person B) under which person B performs work as an independent contractor for person A; and
    1. the work or some of the work is actually performed by employees of person B or of a subcontractor; and
      1. the agreement, or that part of the agreement, under which person B performs the work expires or is terminated; and
        1. the work is to be performed by person A or employees (if any) of person A.

          1. In this subpart, unless the context otherwise requires, contracting out means a situation where—

          2. a person (person A) enters into an agreement with another person (person B) under which person B is to perform work as an independent contractor for person A; and
            1. the employees of person A are actually performing, or employed to undertake, the work or some of the work before the agreement takes effect.

              1. The definition of contracting out applies whether or not the work is to be performed by—

              2. person B or employees (if any) of person B; or
                1. a subcontractor or employees (if any) of a subcontractor.

                  1. In this subpart, unless the context otherwise requires,—

                    subsequent contracting means a situation where—

                    1. a person (person A) has an agreement with another person (person B) under which person B performs work as an independent contractor for person A; and
                      1. the work or some of the work is actually performed by employees of person B or of a subcontractor; and
                        1. the agreement or that part of the agreement under which person B performs the work expires or is terminated; and
                          1. person A enters into an agreement with another person (person C) under which person C is to perform the work as an independent contractor for person A.

                          2. The definition of subsequent contracting applies whether or not—

                          3. the work concerned has previously been the subject of a subsequent contracting:
                            1. the engagement of person B as an independent contractor constituted a contracting out:
                              1. the work is to be performed by—
                                1. person C or employees (if any) of person C; or
                                  1. a subcontractor or employees (if any) of a subcontractor.

                                  2. To avoid doubt, in the definitions of contracting in, contracting out, and subsequent contracting, references to work in relation to person A—

                                  3. mean work that person A is doing or would otherwise do in person A's own right; and
                                    1. include work that person A is doing or would otherwise do as an independent contractor or as a subcontractor.

                                      Notes
                                      • Section 69C: substituted, on , by section 6 of the Employment Relations Amendment Act 2006 (2006 No 41).