New Zealand Introduces Bill to Clarify Contractor vs. Employee Status

New Zealand's government introduced the Employment Relations Amendment Bill, which aims to create a clearer legal distinction between independent contractors and employees. The legislation proposes a "gateway test" to provide more certainty for businesses. Under the bill, a worker would be legally defined as a contractor if they have a written agreement stating as such, are not restricted from working for others, can set their own hours or subcontract the work, and were given a reasonable opportunity to seek independent advice before signing the agreement. If these criteria are met, the worker would be prevented from later claiming they were an employee entitled to benefits like holiday pay and sick leave.

Source: Dentons