Contractor or Employee – Uber New Zealand
The Court of Appeal ruled that 4 Uber drivers are employees, not independent contractors, by applying the correct legal test. This decision overturns the 2022 Employment Court's approach, which was seen as too broad. The Court of Appeal emphasized Uber's control over drivers' work and earnings, highlighting the lack of independence when drivers are logged into the app.
This ruling could allow Uber drivers to claim employee benefits like sick leave and holidays, and it may prompt further legal challenges. The case has wider implications for other contractors as well.
The leading case for determining whether a person is an employee or contractor was the application of the “real nature” test by the Supreme Court case, Bryson v. Three Foot Six Ltd, which requires that the Court considers all relevant matters under section 6(3) of the Act, which includes:
the parties’ intentions;
the control exerted by the alleged employer over the alleged employee;
the independence of the alleged employee;
the fundamental “economic reality” of the arrangements; and
the level of integration of the alleged employee within the alleged employer’s business.
If you have questions or are still unsure about the difference between employees or contractors or your obligations as an employer, please contact us knowhow@knowhow.co.nz