The Employment Court has
overturned a decision of the Employment Relations Authority. The ERA held that
a commercial cleaner was an independent contractor.
The worker participated in the
company’s core business and did not have any specialist skills as would be
expected of a contractor. The cleaner had regular and unvaried work, and
received fortnightly wages unlike company contractors who received monthly
payments.
Despite taxation arrangements
indicating an absence of an employment relationship, the worker did not have an
accountant and did not deduct any work-related expenses from her income as a
contractor would.
The Court criticised the ERA for
placing minimal significance on the company’s requirement that the worker wear
their branded uniform. The Court stated that this condition indicated that
there was an employment relationship as it showed that the worker was fully
integrated into the company’s workforce and was under their control.
The worker can now bring a
personal grievance claim for unjustified constructive dismissal.
Alan Knowsley
Employment Lawyer Wellington
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