MBIE imposing penalties for treating Employees as Contractors
MBIE are sending a strong message to employers, particularly in the construction industry - that you cannot treat employees as contractors just to avoid keeping wage records; paying PAYE, paying less than minimum wage rates or to avoid paying for Stat days. they are imposing fines for breach of employment laws.
These are now additional fines to those imposed by the IRD.
There has to be clear evidence that the real nature of a relationship is indeed that of a contractor and not an employee. There are various tests for this and you need to get it right. In particular watch out for someone who only works for you and who works at your beck and call.
If you have contractors on your books and you've mnot had the set up reviewed professionally, get hold of us and we can advise.