Partner claims he was actually employed despite holding 20% stake in company
The Employment Relations Authority (ERA) recently dealt with a preliminary determination involving a man who claimed he was an employee of a window importing company where he held a 20% shareholding, seeking unpaid wages and compensation for alleged unjustified dismissal.
The worker argued that he was employed full-time and entitled to $1,000 per week wages, while also claiming unjustified disadvantage and dismissal when the business relationship ended.
He contended that despite being a shareholder, he was working as an employee and should receive employment law protections.
The parties met through a mutual sailing friend in January 2019 after the company directors indicated they had a business idea to sell windows manufactured in Turkey for the New Zealand market and needed assistance with translation and understanding Turkish business culture.
The worker, originally from Turkey with an entrepreneurial background, was introduced to help with their venture.
During their initial meeting, the directors offered to pay the worker as a contractor for translation services, but he declined payment and instead suggested they pay for an open-ended return trip to Turkey to accompany one director on a business trip.
The worker also mentioned he had family in Turkey, including his mother, whom he would visit as part of the trip.
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