Source: BusinessNZ
The Supreme Court has today ruled that four rideshare drivers should be classified as employees and not contractors, a decision with far-reaching implications for the economy at large, BusinessNZ says.
Chief Executive Katherine Rich says if this becomes the status quo, then the gig economy could collapse as a result.
“These types of businesses have become a part of our work and leisure, and are founded on a contractor model. If the employment status of platform workers becomes too rigid, then the conveniences we’ve come to enjoy could cease to be.
“Likewise if you are contracting with platforms like rideshare or delivery gigs to supplement your primary income, or working across multiple platforms, then you may be forced to re-evaluate.
“Beyond the gig economy, tradespeople, IT consultants and creatives who value flexibility of contracting could be caught out.”
Rich says BusinessNZ has been long calling for a commonsense approach to the gig economy.
“It’s an issue we’ve raised with the Government before and if it isn’t resolved soon, it has the potential to make not just platform work unviable in New Zealand, but puts contracting employment in general at risk.
“BusinessNZ wants to see decisive action on this as soon as possible and give business and contractors certainty that their arrangements will remain flexible.”
The BusinessNZ Network including BusinessNZ, EMA, Business Central, Business Canterbury and Business South, represents and provides services to thousands of businesses, small and large, throughout New Zealand.
