The Supreme Court of New Zealand has issued a landmark decision that is set to potentially reshape employment relationships within the gig economy. The gig economy is a flexible and dynamic labour market characterised by short-term, project-based work, where individuals often utilize digital platforms to connect with clients.
On 17 November 2025, the Court unanimously dismissed Uber’s appeal, confirming that four Uber drivers involved in a long-running dispute are to be treated as employees rather than independent contractors. This ruling concludes a long running dispute that has been ongoing since 2021, and brings understanding to an area of law with significant commercial implications.
Providing sought after clarification
At the centre of the decision was the principle that the real nature of a working relationship takes precedence over contractual labels. Drawing on the long-standing Bryson v Three Foot Six Ltd (2005) framework, the Court confirmed that the determination of employee status involves assessing multiple factors, including control, integration, and whether the worker operates their own business.
In its analysis, the Supreme Court found that Uber exercised substantial control over the drivers, including setting fares, monitoring performance through ratings and disciplinary procedures, and regulating conduct via app protocols. While the drivers retained flexibility in choosing when to log in, they could not negotiate pay or build their own customer base. The Court emphasised that the drivers were integral to Uber’s business, effectively serving as the face of its passenger transport services.
What does this mean going forward?
The ruling carries significant practical consequences. Businesses that engage workers through digital platforms should review whether their arrangements genuinely reflect independent contracting or may inadvertently create employment relationships. Potential implications include claims for statutory minimum wage and other entitlements, back-pay, paid leave, and exposure to compliance and tax risks.
For employers, this decision highlights the importance of examining the substance of workforce relationships. Statements of contractual intention alone will not determine employment status; the operational reality of the engagement is decisive. Companies operating within the gig economy, or considering platform-based arrangements, should seek expert advice to ensure compliance and mitigate potential liability.
What does this mean for me?
This Supreme Court ruling is a pivotal development for New Zealand’s employment landscape. It underscores the need for businesses to carefully evaluate the structure and management of gig work arrangements in light of evolving legal expectations.
In the meantime, we recommend that clients review any relationships they have with digital platform-based workers in accordance with the decision, especially by considering the real nature of the relationship.
We recommend that you seek advice from our employment team if you believe this decision may affect you or your business.
Want to know more? Read the judgement for yourself here.
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