Prof Paul Roth said it was "business as usual" in terms of New Zealand law-making, showing what a Third-World country New Zealand was.
"If that's what the Government wants to do, it can do it."
It showed that rather than being a First-World country, New Zealand was "teetering" on Third-World status - prepared to "basically lie back and prostitute ourselves to get more employment into this country".
New Zealand was a "small and poor country" trying to attract big business.
Prof Roth said a law change specific to the film industry could set a precedent so that any time an industry looked likely to be damaged by overseas competition, similar action might be required. In this instance, Sir Peter Jackson and money were driving any law change, not principle or justice.
Economic Development Minister Gerry Brownlee has suggested the Government might look at the law to clarify issues relating to the difference between an employee and a contractor.
Prof Roth said there had been thousands of cases on this issue around the Commonwealth and the rest of the world - "it is probably the most considered issue in employment law".
The 2005 Supreme Court case cited by Mr Brownlee involved James Bryson, a special-effects worker for The Lord of the Rings at Sir Peter Jackson's production company Three Foot Six, who was made redundant and sought to claim unjustified dismissal. To do this he first had to establish he was an employee, not a contractor. The court found he was an employee.
Prof Roth questioned whether a law change was needed with proper drafting of contracts.
"As a lawyer, it is perfectly possible to draft a contract which will hold up in court as a contracting relationship."
One of the issues which worked in Mr Bryson's favour in his claim to be considered an employee was that he had to be trained by the company. If he had been trained by someone else, or required to produce a certificate showing training had been completed, that might have been different, Prof Roth said.
Mr Brownlee's office did not respond to questions on the legal issue put by the Otago Daily Times.
