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What is the difference between an employee and an independent contractor?
Laws do not apply:
- Holidays Act 2003
- Minimum Wages Act 2006
- Wages Protection Act 1983
- Parental Leave and Employment Protection Act 1987
Owner Drivers are almost always independent contractors but each case must be considered on its facts.
Case law TNT Worldwide Express Ltd vs Cunningham [1993] 1 ERNZ 695 (CA).Cunningham issued a personal grievance against the company for termination of contract. The Employment Court found that Cunningham was an employee because of the amount of restrictive control the company held over him. The court of appeal reversed the decision and stated that the tight control simply reflected the need for a standardised image and efficient management. Particular weight was placed on the written contract that required Cunningham to obtain his own Goods Service Licence, insurance, and to employ a relief driver, and gave him the opportunity to profit from sound management.
The difference in this case was a written contract. If you haven't got a contract then depending on the amount of control by the principal, you could litigate as an employee if your position is terminated. Seek legal advice.
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