Five dancers dismissed after protesting a cut to their earnings sought court declarations as employees
Five exotic dancers who worked at a Wellington strip club have been classified by New Zealand's Employment Court as employees rather than independent contractors, after the court found the club exercised control over "every facet" of their work.
In the court's decision, Judge M S King declared that the dancers were employees of GSMN Ltd, formerly Calendar Girls NZ Ltd, while they worked at its Calendar Girls Wellington club.
"I conclude that the plaintiffs were employees of Calendar Girls, rather than independent contractors, during the period for which they worked for Calendar Girls as dancers," the judge wrote.
Dismissed after objecting to pay changes
The dancers started at the club between December 2015 and January 2022. In January 2023, Calendar Girls told its dancers it would raise the prices of its services and keep a larger share of the revenue.
Under the proposed new contract, a 15-minute standard booth lap dance would rise from $100 to $150, while the dancers' share would fall from 60% to 50%.
Thirty-seven dancers signed a letter asking for the previous rates to be reinstated. Within 24 hours, the company's sole director, Mr Samson, posted on the club's Facebook group telling 19 of the signatories, including the five plaintiffs, to clear out their lockers and collect their final pay.
The dancers raised personal grievances. However, those claims cannot proceed until their employment status is settled, which the court described as "a gateway through which they must first pass before taking any further steps."
Contract showed 'unusually high degree of control'
The dancers' written contract labelled them independent contractors who were responsible for their own tax and had no right to sick leave or holiday pay.
However, the same contract barred them from working for any third party, required them to follow company policies "as if the Contractor were an employee," and allowed fines of up to $500 for matters such as walking out of a shift.
"It is notable that... the relevant terms of the contract exhibited an unusually high degree of control for a purported independent contracting arrangement," the judge said. "Taken together, those factors strongly suggest that the plaintiffs were not in business for themselves."
The dancers gave evidence that they had to work rostered shifts, needed permission to arrive late or leave early, and were required to produce medical certificates when sick. They also said the club dictated their outfits and controlled their music. One dancer described the arrangement as "giving you the illusion of choice."
The judge also noted that the lap dances and similar services arguably fell under the Prostitution Reform Act 2003, which gives workers the right to refuse such services.
Because refusing could lead to fines, lost shifts or termination, the court found the dancers' "informed consent was significantly diminished in practice."
"The evidence demonstrates a high degree of control over every facet of the plaintiffs' work," the judge said. "In the circumstances, the presence and level of control exercised by Calendar Girls went beyond what was necessary to ensure quality of service."
Dancers integral to the business
The court found the dancers were central to the club's operations, noting that the business's name and logo both referred to them.
"Without the dancers, there was no business," the judgment said, summarising the plaintiffs' evidence.
The court also found that a restraint of trade meant any goodwill the dancers built up with regular patrons stayed with the club. Judge King accepted that "the plaintiffs were not entrepreneurs."
In an unsworn brief of evidence, Mr Samson maintained that dancers chose their own hours and clothing and that any control benefited both parties.
But the court placed little weight on his brief. Neither he nor any representative of the company attended the June hearing. The court had refused a last-minute adjournment request, finding the company's conduct "deliberate and tactical, and designed to delay the hearing."
Wider industry implications
Judge King confined her conclusions to the facts of the case. However, she observed that "certain features, such as the imposition of fines, restraints of trade and the high degree of control over work performed, are generally indicative of an employment relationship."
The claim predates the amendments to section 6 introduced by the Employment Relations Amendment Act 2026, and the parties did not argue that those provisions applied.
The court made permanent orders prohibiting publication of the dancers' names and identifying details. Costs were reserved.
Meanwhile, Cherida Fraser from the Aotearoa Sex Workers Collective shared a statement from the dancers on Radio New Zealand's Checkpoint.
"We believe this judgment sets an important precedent for the adult entertainment industry on the whole," Fraser said as quoted by RNZ.
Fraser added that the decision meant the dancers could now be compensated for unfair dismissal, and would send a "very strong" message to clubs to ensure their contracts are truly independent.
"The workers should have full control of their own mahi and there will be consequences that hit those clubs in the pocket if they don't start supporting full proper independent contracting," Fraser said.
