Independent Contractor Agreement NZ: 5 Gateway Test Clauses to Review

An independent contractor agreement is more than a document to file away. In New Zealand, it is the starting point for the Gateway Test, but its wording and the way the arrangement operates need to line up.

This guide highlights the areas worth reviewing before you sign a new agreement or rely on an existing one. It is general information, not a replacement for advice from an employment lawyer.

1. A clear written contractor statement

The arrangement needs a written agreement that says the person is an independent contractor or is not an employee. This is a specific Gateway Test requirement. Avoid relying on informal emails, a job title or an invoice alone.

2. Freedom to work for other clients

Review exclusivity, restraint and scheduling clauses. The legislation requires that the contractor is not restricted from doing work for someone else, except while doing the work under the arrangement. It also says hours must not have the effect of preventing other work.

3. Choice over work time or a genuine subcontracting option

The Gateway Test provides alternatives. The contractor must not be required to work or be available at specified times, days or minimum periods, or they must be allowed to subcontract the work. Any vetting of a subcontractor is limited to relevant legal, qualification or criminal-record checks where justified by the work.

4. The right to decline additional work

The arrangement cannot be terminated simply because the contractor turns down work that is additional to the work they already agreed to perform. Check both the termination clause and day-to-day expectations around accepting new jobs, shifts or projects.

5. A real opportunity for independent advice

The contractor must have a reasonable chance to get independent advice before they enter into the arrangement. Give the person sufficient time and avoid pressure to sign immediately.

Why template wording is not enough

The Gateway Test is about the arrangement, not a set of magic words. A strong document matters, but rostering, supervision, additional-work requests and subcontracting practices should all match it.

If the criteria are not all met, the common law test applies to determine the real nature of the relationship. Read our contractor vs employee NZ guide for what that means, or see the official Employment New Zealand guidance.

A sensible next step

Collect the signed agreement and note how the work is actually carried out. Then check each of the five Gateway Test areas in order. Where the answer is uncertain, get employment-law advice before making a classification decision.