Uber Drivers Steered into Employment Status
On 17 November 2025, the Supreme Court released its decision in the case of Rasier Operations BV and others v E Tū Incorporated and another, it’s known as the “Uber decision”, and it’s really important for New Zealand employment laws.
The case considered whether four Uber drivers were employees or independent contractors. Both the Employment Court and Court of Appeal said they were employees. The Supreme Court agreed.
The drivers had all signed a contract, with Uber, which stated they were not employees. Uber argued in the case that the drivers had specifically agreed to be engaged as contractors and that this reflected the common intention of the parties when signing up to the contract.
The drivers however said they were employees, despite how the written contract described them. They argued that Uber had fully integrated them into its rideshare business, and that they lacked control over the quality and quantity of work received and the price they could charge for such work.
The Supreme Court put the contractual language to the side and considered the real nature of the relationship between the drivers and Uber. It’s required to do that under our Employment Relations Act. The Court ultimately found that the relationship was one of employment.
While there were factors which suggested the drivers were independent contractors, these were overridden by the extent of their integration into Uber’s business. The contract simply disguised the true nature of the relationship.
This decision underlies the importance of seeking advice when entering any type of contract for services. Just because a contract says an individual is not an employee, this doesn’t necessarily mean that’s correct.
But how important will this decision actually turn out to be? The government proposed Employment Relations Amendment Bill looks set to legislate the matter and provide clear guidance on contractor status. Until then though, the Uber decision is the law.
If you’d like some guidance on how to navigate all this, the team at Corcoran French is here to help!
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