Former Miss Cook Islands Tiare Faulkner must pay a model $27,500 [1] following a ruling by the Auckland District Court.
The case highlights the legal risks of misclassifying workers as independent contractors rather than employees, which can lead to significant financial penalties for employers.
Judge David Gee ruled that the model worked for Faulkner on a freelance basis for approximately 52 weeks [2]. The court found that Faulkner failed to clarify whether the worker was an employee or a contractor [3]. This lack of formal classification resulted in the model not receiving the wages, and entitlements, required by law.
During the proceedings, the model's lawyer said the worker was treated as an employee and that Faulkner failed to pay her properly for her work [4]. The court determined that the nature of the working relationship created an employment obligation regardless of the freelance label used by the parties involved.
Faulkner lost her bid to fight the ruling, which concluded on June 28, 2023 [5]. The final order requires the payment of $27,500 [1] to settle the unpaid wages, and entitlements, owed to the model for the year of service.
This ruling underscores the New Zealand court's approach to employment law, where the actual reality of a working relationship takes precedence over the terminology used in a contract. By failing to establish a clear legal status for the worker, Faulkner remained liable for the standard protections and payments afforded to employees.
“"The model was working for Ms Faulkner on a freelance basis for approximately 52 weeks,"”
This ruling serves as a precedent for the 'gig economy' and freelance arrangements in New Zealand, reinforcing that the label of 'contractor' does not exempt an employer from wage laws if the worker's daily reality mirrors that of an employee. It signals that courts will prioritize worker protections over informal agreements.
