Builders beware – your contractors may actually be employees

9 Jun 21

A number of recent employment cases address whether a worker is correctly classified as an employee or an independent contractor.

In the recent case of Barry v CI Builders Limited, despite the parties agreeing that Mr Barry was a contractor, the Employment Court found that the real nature of the relationship was in fact an employment relationship. This will have significant ramifications in that it allows Mr Barry to claim employee related entitlements such as sick leave and holiday pay and also means he can pursue a personal grievance – an avenue not open to a contractor.

The case is a reminder that simply labelling a worker as an independent contractor will not necessarily mean they are, and a business may still have the responsibilities associated with employing an individual, if they are in reality, an employee.

The full decision can be found here.

For more, talk to our Employment Team.

For more information contact:

Jessica Higgins (née Frame)

jessica.higgins@al.nz