Employees must be paid the minimum salary and enjoy the rights outlined in the Employment Relations and Holidays Act. They must have a formal agreement and are guided by you as their employer as to when and where they will work, as well as their expectations. A contractor, on the other hand, is a self-employed individual who performs a certain service on a regular basis.
A contractor generates money by sending invoices and must pay their own taxes and ACC levies. They are also not entitled to annual or sick leave, as workers are. The most important distinction is that only an employee may file a personal grievance. You have different rights depending on whether you are an employee or a contractor, but if you go to court, they will look at the text of your employment agreement rather than the label.
Resolve Legal can assist you in determining if you’re dealing with employees or a contractor. We will notify you of any changes in employment laws and how they may affect their kind of work.