[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-1-en-105":3,"doc-seo-282957-105":53,"doc-detail-282957-en":127},{"code":4,"msg":5,"data":6},0,"success",[7,14,19,24,29,34,39,44,49],{"id":8,"doc_module":9,"doc_module_name":10,"category_name":11,"show_sort_weight":12,"slug":13},11,1,"Template","Presentations",90,"presentations",{"id":15,"doc_module":9,"doc_module_name":10,"category_name":16,"show_sort_weight":17,"slug":18},12,"Resumes",80,"resumes",{"id":20,"doc_module":9,"doc_module_name":10,"category_name":21,"show_sort_weight":22,"slug":23},14,"Invoices",70,"invoices",{"id":25,"doc_module":9,"doc_module_name":10,"category_name":26,"show_sort_weight":27,"slug":28},15,"Posters",60,"posters",{"id":30,"doc_module":9,"doc_module_name":10,"category_name":31,"show_sort_weight":32,"slug":33},16,"Social Media",50,"social-media",{"id":35,"doc_module":9,"doc_module_name":10,"category_name":36,"show_sort_weight":37,"slug":38},17,"Forms",40,"forms",{"id":40,"doc_module":9,"doc_module_name":10,"category_name":41,"show_sort_weight":42,"slug":43},18,"Letters",30,"letters",{"id":45,"doc_module":9,"doc_module_name":10,"category_name":46,"show_sort_weight":47,"slug":48},21,"Paper Templates",5,"papers-templates",{"id":50,"doc_module":9,"doc_module_name":10,"category_name":51,"show_sort_weight":4,"slug":52},158,"General","general-158",{"code":4,"msg":54,"data":55},"ok",{"site_id":56,"language":57,"slug":58,"title":59,"keywords":60,"description":61,"schema_data":62,"social_meta":120,"head_meta":122,"extra_data":124,"updated_unix":126},105,"en","advisory-contractors-vs-employees-core-differences-and-implications","ADVISORY - CONTRACTORS vs EMPLOYEES - Core Differences and Implications","","Advisory materials explain how organisations can engage people as contractors, employees, or volunteers, emphasizing that each relationship carries distinct practical and legal consequences. The guidance compares employment “contracts of service” and contractor “contracts for services,” highlighting control, supervision, integration into core work, minimum entitlements, and dispute resolution for employees. Contractors are described as self-directed service providers operating independently. A scenario illustrates how incorrect contracting may lead to employee-status claims, reinstatement, compensation, and potential liability.",{"@graph":63,"@context":119},[64,80,102],{"@type":65,"itemListElement":66},"BreadcrumbList",[67,71,74,77],{"item":68,"name":69,"@type":70,"position":9},"https://docshare.wps.com","Home","ListItem",{"item":72,"name":10,"@type":70,"position":73},"https://docshare.wps.com/template/",2,{"item":75,"name":41,"@type":70,"position":76},"https://docshare.wps.com/template/letters/",3,{"item":78,"name":59,"@type":70,"position":79},"https://docshare.wps.com/template/advisory-contractors-vs-employees-core-differences-and-implications/282957/",4,{"url":78,"name":59,"@type":81,"image":82,"author":87,"headline":59,"publisher":90,"fileFormat":93,"inLanguage":57,"description":61,"dateModified":94,"datePublished":95,"encodingFormat":93,"isAccessibleForFree":96,"interactionStatistic":97},"DigitalDocument",{"url":83,"@type":84,"width":85,"height":86},"https://docshare.wps.com/thumbnails/advisory-contractors-vs-employees-core-differences-and-implications/282957.png","ImageObject",442,249,{"name":88,"@type":89},"Lucas Martin","Person",{"url":68,"name":91,"@type":92},"DocShare","Organization","application/pdf","2026-10-22","2026-09-16",true,{"@type":98,"interactionType":99,"userInteractionCount":101},"InteractionCounter",{"@type":100},"ViewAction",13,{"@type":103,"mainEntity":104},"FAQPage",[105,111,115],{"name":106,"@type":107,"acceptedAnswer":108},"Why is it important to choose the right relationship between contractors and employees?","Question",{"text":109,"@type":110},"If the actual relationship reflects employment while it is documented as contracting, disputes and legal issues may arise, creating potential liability for the organisation.","Answer",{"name":112,"@type":107,"acceptedAnswer":113},"What are the key differences between employees and contractors?",{"text":114,"@type":110},"Employees typically work under high control and supervision and receive minimum employment entitlements, while contractors usually operate independently, provide services in their expertise area, and negotiate their terms.",{"name":116,"@type":107,"acceptedAnswer":117},"How does a court or authority decide whether someone is a contractor or an employee?",{"text":118,"@type":110},"They determine the real nature of the relationship, considering relevant factors such as control, integration into the organisation’s business, and whether the person is primarily in business for themselves.","https://schema.org",{"og:url":78,"og:type":121,"og:title":59,"og:site_name":91,"og:description":61},"article",{"robots":123,"canonical":78},"index,follow",{"doc_id":125,"site_id":56},282957,1790186669,{"code":4,"msg":5,"data":128},{"doc_id":125,"user_id":129,"nickname":88,"user_avatar":130,"doc_module":9,"category_id":40,"category_name":41,"doc_title":59,"doc_description":61,"doc_content":131,"file_id":132,"file_url":133,"file_type":134,"file_size":135,"view_count":101,"is_deleted":4,"is_public":9,"is_downloadable":9,"audit_status":9,"page_count":79,"language":136,"language_code":57,"site_id":56,"html_lang":57,"table_of_contents":137,"faqs":138,"seo_title":139,"seo_description":61,"update_tm":140,"read_time":73},8796095360427,"https://ap-avatar.wpscdn.com/davatar_994ba38a5ba835b3df7d355c54d3ed8d","ADVISORY: CONTRACTORS vs EMPLOYEES  \nWhat this advisory is about  \nOrganisations can engage people in a number of ways, including as contractors, employees, and volunteers. Each form of relationship has different practical and legal considerations (and in some cases requirements) . Employment relationships in particular bring with them a range of statutory entitlementsand obligations. As a result, contracting can sometimes be seen as an easier or cheaper alternative. However, that only works if the underlying relationship reflects that arrangement. If you contract but in reality are in an employment relationship, issues can arise-particularly where the organisation ends the relationship or difficulties arise. This can negatively impact the organisation and result in legal issues and potential liability. It’s therefore important to choose the right relationship to reflect your needs, document that appropriately, and manage the relationship accordingly.  \nThis Advisory looks at the core differences between contractors and employees , and the implications if you use a contractor arrangement incorrectly (ie when the true nature of the relationship is one of employment) . We provide a separate checklist that can be used to help determine whether someone might be a contractor or employee. If you want to set someone up as a contractor, we provide a template contractor agreement that outlines key clauses. As a practical aid, you can also use the factors in the checklist to help ensure that the way the relationship operates in practice reflects that of an independent contractor.  \nEmployees and contractors – what's the difference?  \nTypically employees serve an organisation – another name for an employment agreement is a \"contract of service\", compared with contractor agreements that are \"contracts for services\" . Employees are an integral part of the organisation and usually perform its core work. The organisation exercises a high degree of control and supervision over what they do and how they work. Employees are entitled to various minimum entitlements (including minimum wages , annual holidays and other types of leave) .'Good faith' obligations exist , and there are fair and reasonable process requirements that apply, including before making decisions to end an employee's employment or affecting them to their disadvantage. Employees can raise personal grievances, and have access to statutory dispute resolution proceduresand forums, including mediation and the Employment Relations Authority.  \nContractors are usually in business for themselves (whether or not this is through a separate legal entity, ie. their own company) . They are typically at arm's length to an organisation and are contracted to provide services that are within their area of expertise. As a result, they tend to operate more independently and have greater control over when and how they work. Generally they can negotiate their terms, and they can influence the extent to which they profit, for example by working more efficiently, or providing services to other entities at the same time. For more information on these differences , see the attached checklist.1  \n1 Also, refer to MBIE's guidance on contractors vs employees: [https://www.employment.govt.nz/starting-employment/who-is-an](https://www.employment.govt.nz/starting-employment/who-is-an)employee/difference-between-a-self-employed-contractor-and-an-employee/  \nScenario  \nAn NSO engages Sarah as a contractor to provide financial services for 12 months (to replace the Finance Manager who left) . The NSO and Sarah sign a contractor agreement, which says that Sarah will provide the services for 20 hours per week. Sarah provides the services at the NSO's office, for 4 hours a day, 5 days per week at times set by the NSO, using the NSO's equipment. She has to ask permission when she wants to be away from work. Sarah often attends management meetings and training, and socialises with the NSO's staff. Sarah is GST regi","cbCaindyZQMA9lik","https://ap.wps.com/l/cbCaindyZQMA9lik","pdf",245821,"English","# What this advisory is about\n## Employees and contractors – what's the difference?\n## Scenario\n## Is Sarah an independent contractor or an employee?","[{\"question\":\"Why is it important to choose the right relationship between contractors and employees?\",\"answer\":\"If the actual relationship reflects employment while it is documented as contracting, disputes and legal issues may arise, creating potential liability for the organisation.\"},{\"question\":\"What are the key differences between employees and contractors?\",\"answer\":\"Employees typically work under high control and supervision and receive minimum employment entitlements, while contractors usually operate independently, provide services in their expertise area, and negotiate their terms.\"},{\"question\":\"How does a court or authority decide whether someone is a contractor or an employee?\",\"answer\":\"They determine the real nature of the relationship, considering relevant factors such as control, integration into the organisation’s business, and whether the person is primarily in business for themselves.\"}]","ADVISORY - CONTRACTORS vs EMPLOYEES - Core Differences and Implications | PDF",1789585916]