Independent contractors: the contingent workforce in New Zealand
New Zealand businesses commonly hire independent contractors for a number of reasons, including specific project work, specialised consultancies, flexibility and administrative ease.
Businesses must be accurate in identifying those who are contractors as opposed to employees.
Miscategorising an employee as a contractor can lead to liability on a number of fronts, including:
- PAYE (income tax) penalties and back payments
- Annual leave and public holiday payments
- ACC (social security) liabilities
- Any damages associated with an unlawful termination of the relationship
It is, therefore, essential to categorise the relationship in a way that accurately reflects “reality.”
View the full article on page 19 of the report: Labour & Employment Law Strategic Global Topics.