Although these two types of employment can be similar, there are some things that differentiate them. An employee must be paid minimum wage and have minimum rights as written out in the Employment Relations and Holidays Act. They have to have a written agreement and are directed by their employer about when and where to work and what their expectations are. On the other hand, a contractor is a self-employed person who regularly performs a particular service.
A contractor earns their income through issuing an invoice, must pay their own taxes and ACC levies. They also aren’t entitled to any annual, or sick leave like employees are. The most significant difference is that only an employee can raise a personal grievance claim. You have various rights if you are an employee or a contractor, but if you take an issue to court, they will look at the wording in your employment agreement rather than the label.
At Resolve Legal, we can help determine whether you are considered an employee or a contractor. We will let you know about any employment law changes and how they might have an impact on your type of employment. We will take a look at your employment agreement and explain the rights you have in your position. Our team will advise you on what type of employment may be better suitable for you.