Calls for a refreshed approach to the gig economy have been backed by Business NZ, following a Supreme Court ruling.
The gig economy in New Zealand has come under the microscope recently, with many associations wanting to see a reformed approach to how contractors and unique employment arrangements are handled.
The gig economy is a labour market characterised by short-term, temporary jobs, otherwise known as ‘gigs’, as opposed to permanent, full-time employment.
In this model, workers are often freelancers or independent contractors who complete specific projects or tasks for different clients, which offers flexibility but often lacks the benefits and security of traditional jobs.
Calls for a fresh approach to the gig economy follow the Supreme Court ruling that four rideshare drivers should be classified as employees and not contractors, a decision with far-reaching implications for the economy at large, BusinessNZ outlined.
Chief Executive Katherine Rich said if this becomes the status quo, then the gig economy could collapse as a result.
"These types of businesses have become a part of our work and leisure, and are founded on a contractor model. If the employment status of platform workers becomes too rigid, then the conveniences we’ve come to enjoy could cease to be,” said Rich.
"Likewise, if you are contracting with platforms like rideshare or delivery gigs to supplement your primary income, or working across multiple platforms, then you may be forced to re-evaluate.”
"Beyond the gig economy, tradespeople, IT consultants and creatives who value flexibility of contracting could be caught out."
Rich said BusinessNZ has long been calling for a commonsense approach to the gig economy.
"It’s an issue we’ve raised with the Government before and if it isn’t resolved soon, it has the potential to make not just platform work unviable in New Zealand, but puts contracting employment in general at risk,” she added.
"BusinessNZ wants to see decisive action on this as soon as possible and give business and contractors certainty that their arrangements will remain flexible."
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