He signed a contractor handbook, moonlighted as a DJ, and never signed the employment agreement
He helped build the business from the ground up, landed most of its early clients, and held the title of chief operating officer. He also owned 12.5% of the company.
None of that made him an employee.
New Zealand's Employment Relations Authority has dismissed an application by a marketing professional who argued his engagement with a nationwide marketing firm was, in substance, an employment relationship entitling him to unpaid wages and holiday pay. The determination, issued on October 13, 2026, found the worker was a business partner and independent contractor - not an employee - and that the Authority had no jurisdiction to hear his other claims.
The worker was made redundant from a previous role in April 2020. Through mutual connections in the marketing industry, he began discussions with the founder of Orbit Marketing Limited about joining the business. Orbit was a startup at the time - according to the founder's evidence, it had no money and no clients.
The two signed a memorandum of understanding in May 2020. The terms were clear: if a viable business relationship developed, the worker would become a partner and co-owner, issued shares in the company. Pay would be an hourly rate based on charge-out rates to clients, plus a profit share, with at least 50% of profits retained for reinvestment. The memorandum did not provide for employment.
The worker said he...
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