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Am I an employee or a contractor?

Tuesday 28 May, 2019

It is important to distinguish between employees (who have a contract of services), and independent contractors (who are engaged under a contract for services), as they each have different rights and responsibilities.

How can I tell the difference between a contractor and an employee?

An employee will have an individual employment agreement and are entitled to minimum employment rights, including being paid at least the minimum wage, along with holiday and leave entitlements.

Contractors are engaged to perform services under a different contract, not an independent employment agreement. They earn their income by invoicing for services they have provided, and pay their own tax and ACC levies.

Contractors are not covered by employment laws, which means they don’t get annual leave, sick leave or bereavement leave.

Businesses are not required to keep accurate records for contractors but they are for employees.

If you are unsure whether or not you are an employee or a contractor, call us for a free consultation.