The Employment Relations Authority (ERA) recently dealt with a case involving disputed employment status and unpaid wages. The matter concerned a worker who claimed recovery of wages for work completed as an employee, whilst the employer maintained the worker was engaged as a self-employed contractor throughout their relationship.
The worker argued that whilst he initially operated as an independent contractor, the working arrangement fundamentally changed when he raised financial concerns about the viability of the contracting model.
He claimed the employer then offered him employment on an hourly rate as a short-term solution, creating a distinct employment relationship for which wages remained unpaid.
The employer disputed this entirely, arguing that no employment relationship ever existed and that all work was performed under contracting arrangements on a per-load basis.
The dispute arose from a failed business transaction between the parties. The worker originally attempted to purchase a truck and trailer unit from the employer, making payment and expecting to collect his equipment when he arrived in Taupō. However, this transaction did not proceed as planned, leading to alternative working arrangements.
Instead of the truck purchase, the employer offered the worker use of his truck around 3 October 2023. The worker then completed deliveries using the employer's truck on a per-load basis as a contractor for the employer's...
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