Yesterday, the Supreme Court upheld the Court of Appeal’s ruling that four Uber drivers (Drivers) are employees, not contractors under section 6 of the Employment Relations Act 2000 (Act).[1] 

The definition of an employee under section 6 of the Act is someone who is “employed by an employer to do any work for hire or reward under a contract of service”, requiring the Courts to “determine the real nature of the relationship between [the employee and employer]”.

Uber classifies its drivers as independent contractors who operate their own businesses. Consequently, Uber drivers do not receive benefits reserved for employees such as minimum wage, holidays and leave, minimum hours of work, rest and meal breaks, KiwiSaver or the ability to pursue a personal grievance.

Litigation history

The Supreme Court’s decision is the end of a long running dispute dating back to 2021, when the Employment Court first heard the Drivers' application to be declared employees of Uber (and other companies within the Uber group) under section 6 of the Act.

  • The Employment Court determined that the Drivers were employees of Uber, because there was a high degree of control and subordination in the relationship between Uber and the Drivers.[2]
  • Uber appealed the Employment Court’s decision to the Court of Appeal.
  • In 2024, the Court of Appeal dismissed Uber’s appeal, finding that although the Employment Court misapplied the section 6 test, the Drivers were employees of Uber.[3]
  • The Supreme Court granted Uber leave to appeal the Court of Appeal’s decision in December 2024.[4]

For further information on the litigation history, please refer back to our previously released summary: Uber’s landmark appeal unsuccessful: Uncertainty surrounding flexible work remains.

The Supreme Court’s decision[5]

The Supreme Court unanimously dismissed Uber’s appeal finding all the Drivers are employees of Uber, although there were differing approaches taken in reaching the decision.

In rejecting Uber’s argument that it merely provides a digital platform for drivers and riders to connect and establish their own business arrangements, the Supreme Court found that “a passenger could not reasonably be expected to think they were contracting with the driver when they got into the car”. It was unanimously held that Uber engages its drivers to deliver transportation services to users without establishing a pre-trip contract between each user and driver, and without the option for drivers and riders to choose one another.

The Supreme Court also determined that Uber’s “take it or leave it” contracts merely disguise the true nature of the employment relationship and should not be given weight when determining if the Drivers were employees.

The Supreme Court acknowledged that the Drivers own and manage their vehicles and have complete control over their work hours which indicates a contractor status, but found there were strong elements of control and integration into Uber’s business including that:

  • Uber controls routes, monitors performance, enforces policies outside trip times, retains the whole fare for each drive before passing the Drivers' share onto them;
  • Uber controls the terms of service and can change them at will;
  • the Drivers lack control over their quality and quantity of work, pay rates, and customer relationships, as customers belong to Uber, not the Drivers; and
  • the Drivers are integrated into the business because “[t]hey are the face of Uber’s business, and the relationship between Uber and its drivers is one of co-dependency”.

Ultimately, this landmark decision underscores the complexity of distinguishing between contractor and employee status in the gig economy.

The proposed ‘gateway test’?

The proposed ‘gateway test’ in the Employment Relations Amendment Bill seeks to provide greater certainty for businesses and workers by setting out five clear criteria for contractor status. The worker must have entered into a working arrangement with a contracting party and:

  1. have a written agreement that defines them as an independent contractor; and
  2. not be restricted from performing work for another party, except while performing work for the contracting party; and 
  3. not be required to be available for work at any specific time or for any specific period, or be permitted to subcontract any work under the arrangement to a third party (subject to any vetting requirements of the contracting party to ensure compliance with any relevant statutory requirements); and
  4. the arrangement does not terminate if the person refuses an additional offer of work; and
  5. the worker had a reasonable opportunity to seek independent advice before entering into the arrangement.

If all five are met, the worker will be considered a contractor and will be unable to challenge their status in the Employment Relations Authority (Authority). If any factor is not met, the worker may bring a claim, and the Authority will apply the traditional common law “control”, “integration” and “fundamental” tests as reaffirmed in the Supreme Court’s decision. Therefore, it will be crucial for businesses to ensure all five factors are met.

Get in touch

Please feel free to reach out to any of our experts if you have any questions about how your organisation will be affected by the Supreme Court’s decision.

Special thanks to Isabella Peacock-Price and Caitlin Walker for their assistance in writing this article.


[1] Rasier Operations BV and others v E Tū Inc and another [2025] NZSC 162.

[2] E Tū Incorporated v Rasier Operations BV [2022] NZEmpC 192.

[3] Rasier Operations BV v E tū Inc [2024] NZCA 403.

[4] Rasier Operations BV v E tū Inc [2024] NZSC 177.

[5] Rasier Operations BV v E tū Inc [2025] NZSC 162.

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