The line between an employee and a contractor is not always as simple as it appears. The title you give someone does not decide their status. What matters is how the working relationship actually operates.
A contractor invoices for their work and manages their own tax and ACC. They work for their own benefit. An employee is covered by employment legislation, works under your direction, and is part of your team.
The courts look at intention, control and how closely someone is integrated into your organisation. How they are paid. Who decides when and how they work. Whether they can work for others. How they are viewed by the people around them. These factors help determine their true status.
Getting this right protects you from risk and ensures you meet your obligations from the start.
Our video walks through these indicators in more detail.
Thank you to Bossit for filming and editing.