The New Zealand Court of Appeal (NZCA) has upheld a ruling by the Employment Court (EC), determining that four Uber drivers are employees rather than independent contractors (Jurist). This decision grants these drivers access to several employment entitlements, including minimum wage and parental leave, under New Zealand’s Employment Relations Act.
The initial decision by the EC in 2022 was founded on an interpretation of section 6 of the Employment Relations Act, ruling that the drivers were indeed employees of Uber despite the company’s claim that they were independent providers utilizing Uber’s software (Employment Court Decision). Uber’s subsequent appeal was dismissed by the NZCA, which concurred with the EC’s evaluation. Notably, the NZCA emphasized that while the courts cannot modify the section 6 test, its application must consider the “platform economy” which companies like Uber operate within.
In contrast to this ruling, a 2020 Employment Court decision found that a driver was not an employee due to the nature of the agreement, which anticipated the driver running his own business at his discretion (2020 EC Decision). This dichotomy illustrates the nuanced nature of such employment classifications within evolving gig economies.
Globally, the status of Uber drivers varies significantly. In countries like the UK, Switzerland, and France, courts have recognized Uber drivers as employees. In contrast, Brazil‘s highest court deemed Uber drivers to be independent contractors. In the US, drivers are generally classified as independent contractors, though some states have proposed legislation to secure minimum wage and benefits for rideshare drivers.
Ultimately, any changes to extend employee protections to non-employee workers under New Zealand’s Employment Relations Act would require legislative action by Parliament.