Section 69C — Employment Relations Act 2000: Meaning of contracting in, contracting out, and subsequent contracting

69C Meaning of contracting in, contracting out, and subsequent contracting (1) In this subpart, unless the context otherwise requires, contracting in means a situation where— (a) 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 (b) the work or some of the work is actually performed by employees of person B or of a subcontractor; and (c) the agreement, or that part of the agreement, under which person B performs the work expires or is terminated; and (d) the work is to be performed by person A or employees (if any) of person A. (2) In this subpart, unless the context otherwise requires, contracting out means a situation where— (a) 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 (b) the employees of person A are actually performing, or employed to undertake, the work or some of the work before the agreement takes effect. (3) The definition of contracting out applies whether or not the work is to be performed by— (a) person B or employees (if any) of person B; or (b) a subcontractor or employees (if any) of a subcontractor. (4) In this subpart, unless the context otherwise requires, subsequent contracting means a situation where— (a) 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 (b) the work or some of the work is actually performed by employees of person B or of a subcontractor; and (c) the agreement or that part of the agreement under which person B performs the work expires or is terminated; and (d) 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. (5) The definition of subsequent contracting applies whether or not— (a) the work concerned has previously been the subject of a subsequent contracting: (b) the engagement of person B as an independent contractor constituted a contracting out: (c) the work is to be performed by— (i) person C or employees (if any) of person C; or (ii) a subcontractor or employees (if any) of a subcontractor. (6) To avoid doubt, in the definitions of contracting in , contracting out , and subsequent contracting , references to work in relation to person A— (a) mean work that person A is doing or would otherwise do in person A's own right; and (b) include work that person A is doing or would otherwise do as an independent contractor or as a subcontractor. Part 6A (comprising sections 69A to 69O) was inserted, as from 1 December 2004, by section 30 Employment Relations Amendment Act (No 2) 2004 (2004 No 86). See section 73 of that Act for the transitional provisions. Part 6A (comprising sections 69A to 69O) was substituted by a new Part 6A (comprising sections 69A to 69OL), as from 14 September 2006, by section 6 Employment Relations Amendment Act 2006 (2006 No 41). See section 2(1)(a) of that Act as to subpart 2 of the new Part 6A of this Act (comprising sections 69OA to 69OG) coming into force as from 13 December 2006. See section 11 of that Act as to the transitional provisions.