Employee versus contractor

While in 2024 220,000 New Zealanders were working multiple jobs, today - driven by the rising gig economy and cost-of-living pressures - nearly half of all Kiwis are considering taking on a second job (Tilo, 2025). When we end up taking on more work, we may encounter non-standard work types - such as Uber driving, Deliveroo, and so on (Macfie, 2022). These roles bring a difference between employee benefits and support, and we need to know what our rights are as a contractor.

Contracting is a tricky, murky area of employment legislation in Aotearoa, which can shift power away from individuals to organisations. When compared to standard employment, non-standard work may leave employees without clearly defined legal rights and obligations. For example, contractors are not covered by the Employment Relations Act; cannot bring personal grievances; are often paid based on work results; and may also not be covered by minimum wage agreements (MBIE, 2026). What type of worker we are makes a difference to the protections are available to us. See the table illustrating this post (Berntsen, 2019, p. 3).

Non-standard work has both pros and cons. If we have highly sought-after skills and are at the top end of the market, we can indeed negotiate our own salary, conditions, insurance and leave. However, at the bottom end of the market where we are 'just' labour, the negative aspects put the power in the hands of the employer with short notice work requirements without the ability to turn work down; working alongside well-paid permanent employees at minimum wage without permanent employee protections; no breaks and having to pay for our own replacement as a NZ Post driver if we can't work (Macfie, 2022) in addition to few employment law protections and opaque hiring processes (Berntsen, 2019; NZCTU, 2013).

When organisations decide that all employees will become independent contractors with the 'freedom' to decide their own working hours, such as happened at NZ Post (Macfie, 2022), who holds the power in that relationship? Governments may argue that non-standard employment allows contractors to negotiate their own remuneration packages, it may also allow employers to bypass employment law and set punitive rates of pay (Berntsen, 2019; Macfie, 2022; NZCTU, 2013).

There needs to be a balance here, and I don't think we have it right yet.

Sam

References:

Berntsen, L. (2019). The changing nature of work: Strengths and shortcomings of New Zealand's benefits and protections for Workers in non-Standard Employment. Fulbright New Zealand. https://www.fulbright.org.nz/wp-content/uploads/2019/08/L-Berntsen-AxfordFellow2019-Report-JULY2019.pdf

Macfie, R. (2022, January). Bad jobs. North & South Magazine. https://northandsouth.co.nz/2022/01/15/employment-new-zealand/

NZCTU. (2013). Under Pressure: A Detailed Report into Insecure Work in New Zealand. New Zealand Council of Trade Unions. https://www.union.org.nz/underpressure

MBIE. (2026). Employee or Contractor?. Ministry of Business, Innovation & Employment. https://www.employment.govt.nz/starting-employment/types-of-worker/employee-or-contractor

Tilo, D. (2025). Poly-employment': Transparency in workplaces encouraged amid rise of secondary jobs. HRD New Zealand. https://www.hcamag.com/nz/news/general/poly-employment-transparency-in-workplaces-encouraged-amid-rise-of-secondary-jobs/535335?utm_source=chatgpt.com