Differences Between A Contractor And An Employee In NZ

Summary

• An employee works within your business under an employment agreement and receives statutory rights such as leave, minimum wage and protections. 
• A contractor is self-employed, works independently, invoices for services and is generally not covered by employment laws. 
• The distinction depends on the real working relationship, including control, integration and whether the person operates their own business. 
• This guide explains the differences between employees and contractors for New Zealand business owners and how to assess the relationship in practice.
• It is prepared by LegalVision’s business lawyers, a commercial law firm that specialises in advising clients on employment classification matters.