Who does this decision affect?

The Supreme Court's decision is based on the individual circumstances of the Bryson case. This means that it is not intended to make a blanket change to the way people are engaged. If you are genuinely engaged as a contractor
this decision will not affect you. However, given that some contractors in the industry are working under similar circumstances to Bryson, certain workers will need to review their employment status.

Why does my status matter?

It's important to be aware of the difference because it affects your liability for tax, GST and Accident Compensation. As an employee you have certain rights to pay, conditions of work and holidays not available to contractors. As a contractor you have the ability to claim certain amounts as tax deductibles.

So how do I know if I am an employee and not an independent contractor?

The points highlighted by the Supreme Court are a useful guide. There are also tests set out by organisations like Inland Revenue. In general the Inland Revenue guidelines indicate that you are probably a contractor if you:

On the other hand, you are probably an employee if you:

But if I'm an employee won't I lose the tax benefits I have as a contractor?

You will lose the ability to claim certain things as tax deductibles. However, you will gain the advantages of being an employee including rights to statutory holidays, redundancy and leave such as parental leave, bereavement leave and sick leave. If you belong to a union you can also
collectively bargain alongside other employees for better pay and conditions of work something you could not do as a contractor.

Some people think that this decision will hurt the New Zealand film industry - is that true?

As yet no one is quite sure how many workers will be affected by the decision but there is no conclusive proof that it will damage our industry or make us less competitive in the world film market.

Who can I get more information from?

You should contact your union or industry organisation. They will be able to provide you with more information concerning your specific employment status.

2. PRESS RELEASES

2.1 ACTORS EQUITY and NEW ZEALAND WRITERS GUILD

SCREEN UNIONS WELCOME BRYSON DECISION
Two unions working in the screen industry - Actor's Equity and the New Zealand Writers Guild - welcomed today's employment decision by the Supreme Court. The Court reaffirmed an Employment Court finding that former Weta
model-maker James Bryson was in fact an employee and not an independent contractor. "This is common sense decision," said Actors Equity organiser Teresa Brown. "Given the facts of the case and the relevant laws Bryson was clearly an employee."

Brown pointed out that the decision would have an effect on the entire industry. "The screen sector is organised almost exclusively around the contractor relationship so obviously this case will cause some re-evaluation of the working relationships."

"But it's important that people don't panic," pointed out Writers Guild acting Executive Director Dominic Sheehan. "Any claims that this decision will devastate the local screen industry are inaccurate. The original finding of the Employment Court was based on the specific circumstances of the case. Today's decision, therefore, does not make a blanket change to the way contractors are engaged. However, there are some others working in similar circumstances to Bryson who will be affected by the ruling. If
anyone is unsure about their status they should contact their local union or industry organisation."

The unions are planning a series of screen industry meetings to answer any questions that workers may have concerning their employment status.

2.2 NEW ZEALAND FILM AND VIDEO TECHNICIANS GUILD SUPREME COURT JUDGMENT - BRYSON V 3 FOOT 6 LTD

The New Zealand Film & Video Technicians Guild views the outcome in favour of James Bryson as fair and reasonable given the legal principles involved.

While the judgment goes against current industry practice of engaging screen production technicians as contractors, the case highlights the legal obligation of every screen technician and employer to correctly determine contractor or employee status.

The Guild anticipates that the relevant industry organisations will take the significance of the Supreme Court judgment as an opportunity to review the basis of engagement of screen technicians within all sectors of the screen production industry.

The Guild notes that it is common practice for the majority of feature film and television drama screen technicians in Australia, the UK, Canada and the USA to be engaged as employees.

The Guild does not anticipate that any significant cost increases will be incurred by producers when engaging technicians as employees. The gross cost of engaging a contractor who is responsible for their own ACC payments and holiday pay arrangements should equal the gross cost of engaging an employee including ACC and holiday pay.

The New Zealand Film &Video Technicians Guild represents a diverse group of screen production personnel in the independent television and feature film production sector.

2.3 SPADA
IMPLICATIONS FOR SCREEN INDUSTRY OF BRYSON DECISION NOT WIDESPREAD

SPADA, the Screen Production and Development Association of New Zealand said that today's Supreme Court's decision on the Bryson case is not likely to have widespread implications for engagement of workers in the New Zealand screen industry.

"We agree with the statement issued by the New Zealand Writers Guild that this decision is not any cause for over- reaction in the industry as the original finding of the Employment Court was very much based on the specific
circumstances of the case," said SPADA CEO, Penelope Borland. "It is important that contracts meet the proper tests for a contract for services and we have been and will continue to emphasize that to our screen production industry members."

"Today's decision does not make any significant change to the way contractors are engaged in the screen industry," said Ms Borland. She said that the infrastructure surrounding the production of The Lord of the Rings was very different from how the rest of the industry operates with production companies engaging people for one off, usually shorter term
productions.

In addition, the Supreme Court has simply restored the judgment of the Employment Court as it found there was not a significant error of law in that Court's decision to have warranted a hearing by the Court of Appeal, SPADA said.

"The Employment Court judge emphasized that her decision that Bryson was an employee was based solely on his individual circumstances and was not to be regarded as having widespread implications for the status of other workers in the industry," said Ms Borland.

2.4 NEW ZEALAND FILM COMMISSION
SUPREME COURT DECISION ON BRYSON CASE
The New Zealand Film Commission notes the decision of the Supreme Court today reaffirming the Employment Court decision that Mr Bryson was an employee rather than a contractor. This decision was based on the very specific circumstances of the relationship between Mr Bryson and Three Foot Six Limited.

The judgement specifically recognises that many practitioners working in the film industry are indeed engaged as contractors. Contractors and producers with similar circumstances to those of Mr Bryson will need to determine the true nature of the relationship between them. We expect that most contractors in the New Zealand film industry will be unaffected by this judgement.

2.5 SCREEN DIRECTORS GUILD OF NEW ZEALAND

BRYSON V 3FOOT 6 LTD CASE
The screen Directors Guild of New Zealand considers the outcome in favour of James Bryson to be an opportunity for employers and contractors to re-evaluate their working relationship. The case highlights the pitfalls for contractors working in the film and television industry, clearly both the
production company and the contractor need to be sure about the status of their working relationship.

"We often find that while directors may have a contract with a production company, and they may work there for a year, that many of the benefits that employees are entitled to do not apply to the Director contractor," says
Guild Executive Director Anna Cahill.

In New Zealand Directors are often bullied into taking long term contracts that have none of the benefits associated with being a long term employee. They do not receive sick pay, holiday pay, or have any retirement schemes. Current industry contracts are often geared entirely to protecting
production companies, and allow these companies to avoid paying standard employee benefits. Any Directors entering into long-term working relationships in the near future should seek clarification on their actual legal standing.

Whilst there should be no panic around the outcome of the case by either production companies or contractors the Bryson decision brings to our attention the need for robust industry contracts that entitle workers and contractors to basic rights and both parties to clarity as to their business
relationship.