Increased certainty for contractors coming

The change provides a gateway test that businesses can use when responding to a claim that a person is an employee and not a contractor. It will ensure businesses and workers have more clarity from the start of their contracting arrangement.

Workers can challenge their employment status in the Employment Relations Authority and through the courts if they believe they should be classified as employees. These cases can be costly for businesses and can increase business uncertainty.

A new, smaller set of criteria will be provided in the Employment Relations Act. If the criteria are met, a worker would be considered to be a contractor.

Read the Minister’s announcement(external link) — Beehive.govt.nz

Find out more about these changes