New privacy rules when collecting information from third parties will impact employers

The Privacy Amendment Bill will, if enacted, amend the Privacy Act 2020 by introducing Information Privacy Principle 3A taking effect from 1 June 2025

IPP 3A focuses on the collection of personal information from someone other than the individual concerned. IPP 3A requires obligations in a similar vein as IPP 3 (the things you must make an individual aware of when collecting personal information from them), but with the notable difference of compliance being able to be completed after acquiring the information. Compliance revolves around ensuring the individual concerned has been made aware of all of the matters specified in 3A(1), including: the fact of collection, the purpose, the intended recipients, who will hold the information, and the right to access and correction.

Non-compliance is only excusable when there is a belief on reasonable grounds in relation to one of the criteria outlined in 3A(4). These criteria allow non-compliance for reasons including where the non-compliance would not prejudice the interests of the individual, if compliance would prejudice the purposes of the collection, or if compliance would cause a serious threat to public health or safety or to the health and safety of another individual.

Importantly for employers, it is unlikely the provisions allowing for non-compliance would apply to much information actively collected by an employer about a prospective or existing employee. This means the gathered information will need to abide by the necessary steps for compliance outlined in 3A(1). A well thought out privacy statement on employment application forms will help. Additional compliance obligations will be created in the employment context through this amendment, and it will become increasingly important for employers to be transparent in disclosing their intentions to collect personal information from third parties.

Want to know more?

If you have any questions about privacy rules relating to employment law, please contact our Employment Specialists.

PDF version available here.