Sione and Mia are directors of AAA Solutions Ltd (AAA), a New Zealand company that provides consultancy services for businesses. Sione and Mia are also employees of AAA. Sione and Mia do not employ anyone else in the company, but they do have contracts with freelance consultants who do work for AAA when Sione and Mia are busy. AAAs contracts with the freelancers clearly state that the freelancers are independent contractors, but Sione and Mia are concerned they may face potential liability under New Zealands health and safety law. To avoid potential liability under New Zealands health and safety law, Sione and Mia have put a clause in their freelance contractor contracts that states that Sione and Mia are not personally liable if the freelance contractor is injured while working for AAA.

Sione and Mia have asked their friend Louisa (a law student) to give them advice on whether or not they are likely to be liable under New Zealands Health and Safety Law.

Louisas Advice:

New Zealand's health and safety law is set out in the Employment Relations Act 2000. Sione and Mia, as directors of AAA, are normally automatically personally liable if anyone working for AAA (whether they are an employee or not) is injured while working for AAA. However, in this case it is unlikely that Sione and Mia will be personally liable for two reasons. First, because the freelance contractors are not employees, the clause in the freelance contractor contracts will be effective and Sione and Mia will not be personally liable. Second, because Sione and Mia are also employees of AAA, this means they cannot be personally liable under the Employment Relations Act 2000.

3/11

1233-1 BUSINESS 112 (09/06/2023 09:00) Managing Sustainable Growth 1 (Exam)

1 Please analyse Louisas advice in the scenario provided and identify: a. what is correct in what she has said and why; and

b. what is not correct in Louisas advice and why.

Go through each sentence separately and state whether it is correct and why or incorrect and why, rather than attempting to give general advice about Louisas advice. Also it may be that part of a sentence is correct and another part is incorrect. Your reasons why something is correct or not correct are important and you need to provide reasons to get marks.

You should write between one sentence and one paragraph for each sentence of Louisas advice.

USE THE ILAC METHOD TO ANSWER THE ABOVE QUESTION

ISSUE:

IDENTIFY THE ISSEU OR PROBLEM

IS THERE MORE THAN ONE ISSUE IN A QUESGION- EACH ONE MUST BE ADDRESSED SEPERATELY

LAW:

IDENTIFY THE RELEVANT LAWS, IF THE QUESTION TOUCHES ON MORE THAN ONE ACT, YOU MUST ADDRESS EACH ONE SEPERATELY

APPLICATION:

ANALYSE THE SITUATION AND EXPLAIN HOW THE RELEVANT LAWS APPLY FOR EACH DIFFERENT ISSUE YOU HAVE IDENTIFIED

CONCLUSION:

COME TO A CONCLUSIONS, DONT START WITH A CONCLUSION FOR EACH ISSUE.