Contractors Law. Will it affect you?

[hayd3n]

http://www.stuff.co.nz/business/opin...-bill-confused

[hayd3n]

http://www.radionz.co.nz/news/nation...from-employers

[Ocean1]

No, I already can't afford employees, making them more expensive won't affect me in the slightest.

[Mike.Gayner]

Contractors sign up to contracts for services and are paid for outcomes, not paid by the hour.

What nonsense - at least half of all the contractors we use at work are hourly. If BusinessNZ is so concerned about this matter, perhaps they should tell their members to stop trying to shift legitimate employees onto contracts for the purposes of paying them less than minimum wage (plus no holiday leave, sick leave and no other employee entitlements).

[hayd3n]

If the bill is passed, it will require businesses to work out what contractors will earn on an hourly rate. Which does not take into account the nature and dynamics of contracting. Contract payment options may include an hourly rate, but other common practices also include the use of piece rates for volume based work and fixed price for payment upon completion of work.

[Gremlin]

Stupid legislation... they have plenty to fix without fucking up more.

As mentioned, there is already law around more than 80%?? of your income coming from one source, plus I think I recall it already being tested in court?

I work for a company that contracts to clients supporting their networks, some is paid by the hour, others are on monthly retainers. Then again, I guess we're not exactly minimum wage, but what, we'd have to account for all hours to someone?

In the building game it's often per m2. So if a builder is slow, suddenly he breaches minimum wage, but a quick efficient worker is well above?... Work slower, get paid more... yeah, sounding even smarter.

[hayd3n]

Stupid legislation... they have plenty to fix without fucking up more.

As mentioned, there is already law around more than 80%?? of your income coming from one source, plus I think I recall it already being tested in court?

I work for a company that contracts to clients supporting their networks, some is paid by the hour, others are on monthly retainers. Then again, I guess we're not exactly minimum wage, but what, we'd have to account for all hours to someone?

In the building game it's often per m2. So if a builder is slow, suddenly he breaches minimum wage, but a quick efficient worker is well above?... Work slower, get paid more... yeah, sounding even smarter.

yeap and to think it comes down to one vote... mr dunn the ball is in your hands

[Mike.Gayner]

I work for a company that contracts to clients supporting their networks, some is paid by the hour, others are on monthly retainers. Then again, I guess we're not exactly minimum wage, but what, we'd have to account for all hours to someone?

This law would apply to independent contractors, not larger businesses.

[hayd3n]

This law would apply to independent contractors, not larger businesses.

it will apply to all contractors

[Woodman]

Stupid legislation... they have plenty to fix without fucking up more.

As mentioned, there is already law around more than 80%?? of your income coming from one source, plus I think I recall it already being tested in court?

I work for a company that contracts to clients supporting their networks, some is paid by the hour, others are on monthly retainers. Then again, I guess we're not exactly minimum wage, but what, we'd have to account for all hours to someone?

In the building game it's often per m2. So if a builder is slow, suddenly he breaches minimum wage, but a quick efficient worker is well above?... Work slower, get paid more... yeah, sounding even smarter.

Seems to me that it will be open slather to falsify hours etc. Also what contractor in his right mind would then charge their client more than their quote claiming the government contractor minimum wage legislation. Might get away with it once per client but won't get any repeat business.

[bogan]

Hang on, what sort of fucking contractor charges anywhere near minimum wage to begin with?

Or are they saying contractors who fail to deliver on a quoted job should still get paid minimum wage for the work done?

[Ocean1]

What nonsense - at least half of all the contractors we use at work are hourly. If BusinessNZ is so concerned about this matter, perhaps they should tell their members to stop trying to shift legitimate employees onto contracts for the purposes of paying them less than minimum wage (plus no holiday leave, sick leave and no other employee entitlements).

Nah that's crap, they already can't legally do that.

Is the concept of getting paid by results rather than how long you take a bit scary?

[Ocean1]

Hang on, what sort of fucking contractor charges anywhere near minimum wage to begin with?

Or are they saying contractors who fail to deliver on a quoted job should still get paid minimum wage for the work done?

Who fucking knows what they think is wrong with the current setup.

I do know several guys that work for not very much though. Two, no three of them are "retired", one helps out a landscape gardener when he gets busy, another works in a warehouse every second month and another digs ditches for a drainlayer a couple of days a week.

Another mate has had to give up cleaning a local workshop twice a week, for free, the ACC and OSH compliance issues made it just too hard.

So yeah, go ahead and add more restrictions, that'll help.

[Woodman]

What is the definition of a contractor in relation to the proposed legislation?

[hayd3n]

What is the definition of a contractor in relation to the proposed legislation?

http://taxaccountant.kiwi.nz/define-...-or-contractor
3. How to define the employment status?

Using five employment relationship tests can help us determine the employment status, but there is no single test that will always conclusively determine the issue.

The control test

The greater the control by the employer over work content, hours and methods, the more likely it is an employee status. However, it is not a conclusively test, a high degree control does not lead to an employee status (TNT World Express Ltd v Cunningham).

The independence test

A worker with greater freedom to choose who to work for, where to work, the tools used and so on, is more likely to be an independent contractor.

The integration of organisation test

A person is considered as an employee of the organisation if:
a. The type of work is commonly done by employee
b. Continuous (Not a one-off operation)
c. For the benefit of the business rather than for the benefit of the worker

Intention test

Intention is typically indicated in the written contracts.

Fundamental test

The test involves examining the total situation of the work relationship to determine its economic reality.