Navigating the New Employment Relations Amendment Bill What Uber Drivers Need to Know

The Government’s Employment Relations Amendment Bill has passed its third reading, introducing a new four-part "gateway test" to decide whether a worker is a contractor or an employee. This change is especially important for Uber drivers and others in the gig economy. After years of legal battles, some Uber drivers won recognition as employees, but critics argue the new rules could make it easier for companies to classify workers as contractors again. This post breaks down what this means for drivers, how it affects your work and income, and what you should watch out for.

An Uber driver’s car parked with rideshare app active

What the Gateway Test Means for Drivers

The new gateway test looks at four key factors to decide if someone is an employee or a contractor. This test focuses on who carries the risk in the working relationship. If you are a true contractor, you bear the costs of running your business: fuel, maintenance, insurance, GST, ACC levies, downtime, and more. The company, like Uber, controls the app, sets fares, and can change incentives or deactivate drivers.

For drivers, this means the government is trying to clarify the line between being your own boss and being managed like an employee without the usual protections. The test could make it easier for companies to keep drivers classified as contractors, which affects your rights and benefits.

Why Risk Matters More Than Flexibility

Many drivers value the flexibility to choose their hours. That flexibility is often the main reason people join rideshare platforms. But flexibility loses value if the app controls the price you get paid, the work you receive, and pressures you through ratings or deactivation threats.

Being a contractor means you take on the financial risks. If you have a quiet day, you still pay for fuel and car upkeep. If the app changes the fare system or reduces incentives, your income drops but your costs stay the same. This situation makes drivers the shock absorbers of the system.

How This Could Affect Your Income and Bargaining Power

If the gateway test makes it easier for companies to classify drivers as contractors, it could weaken your ability to negotiate for better pay or conditions. Contractors generally do not get minimum wage guarantees, holiday pay, or formal dispute processes. This leaves drivers with less protection against unfair treatment.

Even if you prefer being a contractor, weaker rules can push earnings down. Platforms know individual drivers have little power to negotiate, so they may set terms that benefit the company more than the driver.

Examples from the Courts and Around the World

Uber drivers in New Zealand fought through the courts to be recognized as employees, gaining some protections. But the government’s new rules could reverse this progress by making it easier for companies to argue drivers are contractors.

Globally, governments face a challenge: they want affordable, safe rides but also want to protect workers. Some countries have introduced laws to give gig workers more rights, while others have allowed companies to keep flexible contractor models. New Zealand’s new gateway test fits into this ongoing debate.

What Drivers Should Do Next

• Understand the gateway test: Know the four factors that decide your status. This helps you recognize if your work situation fits being a contractor or employee.

• Keep records: Track your hours, expenses, and communications with the platform. This information can support your case if you challenge your status.

• Join driver groups: Collective voices have more power to push for fair treatment and better rules.

• Stay informed: Employment laws can change. Keep up with news and legal advice relevant to gig workers.

• Consider your options: If you feel the risks outweigh the benefits, explore other work or ways to protect your income.

  
  

What This Means for the Future of Gig Work in New Zealand

The Employment Relations Amendment Bill signals a shift in how gig work is regulated. It highlights the tension between flexibility and security. Drivers may continue to face uncertainty about their rights and protections.

The key takeaway is that the classification of workers affects more than just labels. It impacts your income, your ability to speak up, and your financial security. Understanding these changes helps you make informed decisions about your work and your future.

The government’s goal is to balance affordable transport with fair treatment for workers. How well this balance is struck will shape the gig economy for years to come.