New Zealand Initiative Welcomes Clarity On Gig Economy Workers

Wellington (Sunday, 15 September 2024) - The New Zealand Initiative applauds the government's announcement of a new 'gateway test' to provide greater certainty for contractors and businesses in the gig economy.

The proposed changes to the Employment Relations Act, which introduce a clear set of criteria for determining contractor status in the gig economy, mark a significant step towards modernising New Zealand's labour laws.

Roger Partridge, Senior Fellow at The New Zealand Initiative, said, "This move brings much-needed clarity to an area that has long been a legal quagmire. It's a win-win for both workers who value flexibility and businesses seeking to innovate."

The Initiative particularly welcomes the government's recognition of the changing nature of work in the 21st century. The new test acknowledges that many workers, especially in the gig economy, prefer flexibility over traditional employment benefits.

"By providing clear guidelines, the government is fostering an environment where businesses can offer better terms to contractors without fear of unintended consequences," Partridge noted.

However, the Initiative cautions that the implementation of these changes will be crucial. Partridge added, "While this is a step in the right direction, we must ensure that the new rules are applied consistently and don't create unintended barriers to flexible work arrangements."

The New Zealand Initiative believes these changes could lead to a more dynamic and innovative economy, benefiting both workers and businesses alike.

"This reform shows that New Zealand can adapt its laws to reflect modern work practices while still maintaining protections for workers," Partridge concluded.

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