Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 


Dependent contractor clause in new employment law

The Government's proposal to draw so called "dependent contractors" within the framework of its new employment law is about to pose a major headache for businesses using independent contractors, according to the Employers & Manufacturers Association.

"Many businesses we are hearing from are calling this part of the new law 'disastrous'," said Alasdair Thompson, chief executive of EMA (Northern).

"No one will be able to know for sure whether someone they have engaged as an independent contractor is actually an employee.

"Even if the contract they have signed clearly states this is the case, the view of the new Employment Relations Authority, to be established, may be different.

"This aspect of the Bill will create a huge degree of uncertainty and has the potential to undermine businesses reliant on contractors; it could easily cause unemployment," Mr Thompson said.

EMA's Employment Relations Manager Peter Tritt said the implications are very serious for anyone in business because there are many obligations, both existing and new, for employers to fulfil towards employees that don't apply to independent contractors.

"On top of existing tax obligations, and employer liability for minimum entitlements, there will be heaped a whole new raft of compliance requirements.

"Under the new law all employees will have to be given a written notice stating their terms of employment including a description of the work, the places where work is to be performed, the hours, days and times of work, rest and meal breaks, and the wages and salary payable.

"For someone engaged as an independent contractor these notices will often be irrelevant. But employers who fail to comply with this requirement on behalf of their employees will become exposed to penalties of up to $5000 for individuals and $10,000 for companies.

"Many businesses will be faced with a dilemma. If a person they are dealing with on the basis that he/she is an independent contractor is subsequently deemed an employee, they will find that they have not complied with the law.

"They will then have to untangle the mess created by moving someone from one contractual basis as an independent contractor to another as an employee. This will mean liability for PAYE and ACC. Employers will also have to reconcile their statutory liability to pay minimum wages and entitlements with the contractual payments made in terms of an independent contract.

"From an employee's perspective, an inevitable outcome will be a revisiting by the IRD of their self-employed tax status."

ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Also, Loan Interest: Productivity Commission On Tertiary Education

Key recommendations include better quality control; making it easier for students to transfer between courses; abolishing University Entrance; enabling tertiary institutions to own and control their assets; making it easier for new providers to enter the system; and facilitating more and faster innovation by tertiary education providers... More>>

ALSO:

Higher Payments: Wellington Regional Council Becomes A Living Wage Employer

Councillor Sue Kedgley said she was delighted that the Wellington Regional Council unanimously adopted her motion to become a Living Wage employer, making it the first regional council in New Zealand to do so. More>>

ALSO:

Scoop Images:
Dame Patsy Reddy Sworn In As Governor-General

This morning Dame Patsy Reddy was sworn in as the New Zealand Realm’s 21st Governor-General. The ceremony began with a pōwhiri to welcome Dame Patsy and her husband Sir David Gascoigne to Parliament. More>>

ALSO:

Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>

ALSO:

With NZ's Marama Davidson: Women’s Flotilla Leaves Sicily – Heading For Gaza

Women representing 13 countries spanning five continents began their journey yesterday on Zaytouna-Oliva to the shores of Gaza, which has been under blockade since 2007. On board are a Nobel Peace Laureate, three parliamentarians, a decorated US diplomat, journalists, an Olympic athlete, and a physician. A list of the women with their background can be found here. More>>

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>

ALSO:

Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news