Reference no: EM133298727

Case: Liku from Earth's Bounty Ltd (EB) has come to you for advice. EB is a small company that produces and sells a range of organic skin care products made in New Zealand. Liku wants a full-time social media manager to take care of EB's social media accounts, including creating some content. Liku has found Mia, who she thinks would be excellent in the role. Mia has not worked as a social media manager before; her work experience has been in retail stores as a shop assistant. Liku wants to engage Mia as an independent contractor rather than an employee despite the fact that Mia will be working at least 40 hours a week for EB. This is because Liku wants to be able to terminate Mia's services easily if she turns out not to be a good social media manager. Also, Liku will not have the administrative complexities of PAYE tax, Kiwisaver and other payments if Mia is engaged as an Independent contractor.

Question 1(a) In relation to Liku's stance of wanting to engage Mia as an independent contractor rather than an employee, is she acting as: (i) A moral manager (ii) An immoral manager, or (iii) An amoral manager? Justify your chosen answer and explain why the other two options do not apply.

Question 1(b) If the contract between EB and Mia states that Mia is an independent contractor, is that final? If Mia challenged that contract in the Employment Relations Tribunal or the courts, could she be found to be an employee rather than an independent contractor? Justify your answer

Question 1(c) Give ONE practical example of the consequences for EB if the Employment Relations Tribunal or the courts find that Mia is an employee rather than an independent contractor