Friday, 10 April 2015

Putting “contractor” into company uniform backfires…


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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