The government has announced its plan to amend the Employment Relations Act 2000 by introducing a new legislative test that aims to prevent workers from challenging their status as an independent contractors and claiming that they are employees.

When engaging people as contractors, it's not just the contract label that matters — how the working relationship functions in practice is key. If a contractor is treated like an employee, with significant control exerted over their work and integration into the business, the contractor will 'at law' likely be an employee, and getting this classification wrong can be and often is expensive. Understanding and correctly applying the criteria is essential to avoid legal and financial repercussions.