BusinessNZ agrees with a policy proposal to clarify in law the distinction between contractors and employees.

Commenting on an election policy released by ACT today, BusinessNZ Advocacy Director Catherine Beard said the issue was a significant one for the business community.

"Changes in employment practice resulting from flexible working routines and new technologies including app-based contracting mean a better legislative distinction between contracting and employing is needed.

"This is an area where employment law is significantly lagging behind employment practice."

The distinction between contractors and employees has been the subject of litigation in New Zealand over recent years, including the most recent Uber case.

BusinessNZ is a member of the Tripartite Working Group on Better Protections for Contractors which last year recommended legislative changes to achieve a clearer distinction between employees and contractors.

© Scoop Media