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Will's Word: To be or not to be a contract worker

The government has outlined its upcoming changes to the law to clarify whether a worker is an employee or a contractor. But there are fears it could negatively impact workers. #PacificMornings host William Terite shares his views.

This is a transcript from Will’s Word on Monday, 16th of September 2024:

Now it's time for Will's Word...

The Government’s upcoming changes to clarify the distinction between employees and contractors are stirring debate, and I can see the arguments on both sides.

On one hand, the new criteria outlined in the amendment could offer much-needed clarity for both businesses and contractors. By establishing clear guidelines—such as the requirement for written agreements and the freedom to work for multiple clients—businesses can avoid costly and uncertain court battles over employment status.

This clarity could also help prevent similar disputes across various sectors, ultimately stabilising the labour market.

However, the downside is that these changes might limit the ability of workers to contest their employment status if their situation doesn’t fit neatly into the new framework. While the proposed criteria aim to provide a clear-cut approach, they might not fully capture the nuances of every contracting arrangement, potentially harm workers who find themselves in more ambiguous or less traditional working relationships.

While the new rules could reduce uncertainty and administrative costs for businesses, they might also restrict workers’ ability to challenge their status if they feel it isn't right.