Air traffic control trainees will now be considered employees after intervention from the workforce watchdog.
The trainees spend up to 18 months working towards their qualifications, which is split into two parts.
The first takes place in Christchurch over about eight months and is theory-based.
The second part is on the job training at various air control towers throughout New Zealand and takes nine months with the trainees working full-time hours.
Prior to an agreement between Airways NZ and the Labour Inspectorate, trainees would receive an allowance for the practical element of their course - but not be paid as employees.
Following a review conducted by the Labour Inspectorate, the two parties agreed trainees in the second part of the course will be paid as employees of Airways NZ.
Under the agreement, Airways NZ will now also calculate an appropriate amount of pay to be given to former trainees from the past six years.
The Labour Inspectorate's southern regional manager Brendon Strieker said that when an inspector started investigating the relationship between the trainees and Airways NZ, they believed the relationship was one of employment and the trainees should be considered employees.
The Labour Inspectorate then applied to the Employment Court seeking a declaration that two trainees who were part of a group initially interviewed by a Labour Inspector were in fact employees.
They also applied to the Employment Relations Authority (ERA) seeking minimum wage, annual leave pay, public holiday and alternative holiday arrears for the two trainees.
After the agreement between the Labour Inspectorate and Airways NZ, the Employment Court issued a consent judgment stating the two trainees were employees during the second part of their training.