Status as an ‘employee’ does not require a bilateral employer/employee relationship, the Court of Appeal held, ruling staff working fulltime for airline caterer LSG Sky Chefs were LSG employees even though hired from and paid by an intermediary labour hire company.
The status of triangular labour hire contracts was in question when Kamlesh Prasad and Liutofaga Tulai claimed they were LSG Sky employees. The two were hired by other companies, Solutions Personnel Ltd and Blue Collar Ltd, and directed to work at LSG’s in-flight catering business. One had worked at LSG for four years, the other two. LSG paid Personnel for staff provided; Personnel paid the individuals.
The Employment Relations Act has an open-ended definition of who is an employee: courts are asked to look at ‘the real nature of the relationship’ and ‘consider all relevant matters’. The Court of Appeal ruled Mr Prasad and Ms Tulai were ‘employees’ of LSG Sky. It provided them with a work environment and work instructions. LSG controlled their daily work activities. There had been continuity in the work relationship for an extended period of time. It was fanciful for Personnel to argue the two were in business on their own account as independent contractors, the Employment Court said at an earlier hearing. The two did not issue invoices or keep business records.
LSG Sky Chefs New Zealand Ltd v. Prasad – Court of Appeal (16.07.18)
18.141.