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Make Way for the ‘Gateway Test’: Upcoming Changes to New Zealand’s Independent Contractor Law
New Zealand’s open economy, strong reputation for innovation, and broad trade networks make it an attractive place to do business, especially through alternatives to direct employment, such as engaging workers as independent contractors. However, like in many jurisdictions, the line between “employee” and “independent contractor” has not always been clear.
Currently, New Zealand authorities apply four overlapping tests when assessing misclassification. Perhaps recognizing the convolution, lawmakers have proposed the Employment Relations Amendment Bill 2025 (the “Bill”). The Bill, which is expected to pass later in 2025, may provide a “short-cut” or more streamlined analysis for correctly classifying a worker as a contractor in certain cases.
Currently, New Zealand authorities apply four overlapping tests when assessing misclassification. Perhaps recognizing the convolution, lawmakers have proposed the Employment Relations Amendment Bill 2025 (the “Bill”). The Bill, which is expected to pass later in 2025, may provide a “short-cut” or more streamlined analysis for correctly classifying a worker as a contractor in certain cases.
