From Deloitte New Zealand, Andrea Scatchard, Brenna Shepherd, and Nathan Hodge discuss a recent decision that said that Uber drivers were employees due to the control Uber exercised and because the drivers were integrated into their business. Andrea, Brenna, and Nathan write:
The question of whether a worker is an employee or a contractor is one that businesses keep coming back to!
Employees receive minimum entitlements such as holiday pay, benefit from protections as set out in employment legislation (such as the right to take personal grievances) and must have PAYE deducted from their pay. Contractors, by contrast, do not receive those employment benefits, must manage their own tax affairs, and can usually claim deductions for expenses incurred in earning their income. A recent Supreme Court case has pushed that age-old question back into the spotlight and has shown just how significant the consequences can be when worker status is challenged.
The case that brought the issue back
In November 2025, the Supreme Court ruled in Rasier Operations BV v E TŪ Incorporated [2025] NZSC 162 that four Uber drivers were employees while logged into the Uber app, ending a four-year dispute about their legal status. The Court focused on the real nature of the relationship, not just how they described themselves in the contracts. The Court found Uber had significant control over the drivers through fare-setting and performance management, and that the drivers were integrated into the business rather than running their own businesses. This decision had the ability to seriously disrupt the rideshare and delivery sectors.
Read the full story at The Uber Effect: The Employee-Contractor Debate Reignited | Deloitte New Zealand
