The above question is an important one, as the answer dictates your rights, obligations and duties towards your workers. If your worker is an employee, then their relationship with your business is governed by New Zealand employment law and their written employment agreement. However, if they are a contractor, then New Zealand employment laws do not apply to that relationship. If you get the relationship classification wrong, you may be exposing your business to significant liabilities. 

Interestingly, our law states that any description of the relationship made by the parties is not determinative. This means that despite the fact that a worker may have an employment agreement with your business, does not necessarily mean that the worker is, in fact, an employee.