Contracting Move Welcomed

BusinessNZ has welcomed upcoming changes to the Employment Relations Act to clarify the status of contractors.

The Government has announced it will include in the Employment Relations Act an appropriate gateway test for distinguishing whether a worker is an employee or a contractor.

BusinessNZ Advocacy Director Catherine Beard says the business community has been asking for more certainty around the use of contractors and will be pleased with the Government’s decision.

"The recent Appeal Court finding that four specific Uber drivers are employees, but only when they are logged into the Uber app, has created a high degree of uncertainty for businesses as to what constitutes a contractor relationship and what constitutes an employee relationship.

"The Government’s decision to clarify those relationships in law will be particularly welcomed by all businesses that use digital platforms to contract with workers, and all businesses currently concerned that their contractors could be re-categorised to be employees in the future should they decide to take a Court case.

"Having clarity around the distinctions will enable more businesses to use new, innovative business models involving contractors where appropriate," Catherine Beard said.

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