This note is not part of the order, but is intended to indicate its general effect.
This order, which comes into force on 14 December 2012, modifies and extends the operation of the Sleepover Wages (Settlement) Act 2011 (the Act) to give effect to a settlement agreement between Care Solutions NZ Limited and certain of its employees relating to the payment of wages to employees who were permitted to sleep overnight at their workplace while on duty (sleepover wages). The Act implements a settlement of litigation between Idea Services Limited and Timata Hou Limited and their employees (the Idea settlement). Subpart 1 of Part 2 of the Act extinguishes certain claims for sleepover wages in the health and disability sector, and subpart 2 of Part 2 of the Act implements the terms of the Idea settlement.
Subpart 1 of Part 2: Extinguishing claims for sleepover wages
Care Solutions NZ Limited employs staff to provide certain services, including sleepovers, that are funded by Vote Social Development. Clause 5 modifies section 8 of the Act to extend the application of subpart 1 of Part 2 of the Act to Care Solutions NZ Limited. The extension will prevent new civil proceedings being commenced relating to sleepover wages that could have been the subject of a claim extinguished under section 9 of the Act. Section 9 of the Act extinguishes claims by employees of Idea Services Limited and Timata Hou Limited for sleepover wages. Clause 6 extends the effect of section 9 of the Act to also extinguish claims by employees of Care Solutions NZ Limited.
Subpart 2 of Part 2: Settlement relating to Care Solutions NZ Limited
Clause 7 extends the application of subpart 2 of Part 2 of the Act (which implements the Idea settlement) to Care Solutions NZ Limited and its employees, but with certain modifications that are set out in the following clauses.
Clauses 8, 9, and 10 (which modify sections 14, 15, and 16 of the Act respectively) apply to current, recent, and historic employees of Care Solutions NZ Limited. Sections 14, 15, and 16 of the Act relate to the payment of back wages. The modifications ensure that—
the period of time in relation to which back wages are payable to employees of Care Solutions NZ Limited is extended to the close of 31 October 2011; and
employees will be entitled to back wages for sleepovers if they made a claim by 5 pm on 17 February 2012.
Clause 11 modifies section 19 of the Act, which sets out how back wages for sleepovers must be calculated. The formula in section 19 involves multiplying the applicable minimum hourly rate by 9, which represents the number of hours of a sleepover performed by employees of Idea Services Limited and Timata Hou Limited. The formula in section 19 is amended so that the applicable minimum hourly rate will instead be multiplied by 8 to represent the number of hours of a sleepover performed by employees of Care Solutions NZ Limited.
Clause 12 modifies section 20 of the Act, which sets out when back wages must be paid. It provides that back wages due to employees of Care Solutions NZ Limited must be paid no later than 2 months after the date of commencement of this order.
Sections 21 and 22 of the Act provide for a staged progression towards the minimum hourly wage payable under the Minimum Wage Act 1983. Clause 13 modifies those sections to implement the settlement agreed between the parties. The clause provides that,—
for the period 1 November 2011 to 30 June 2012, an employee of Care Solutions NZ Limited is entitled to be paid 50% of the applicable minimum hourly rate for each hour of a sleepover:
for the period 1 July 2012 to 31 December 2012, an employee of Care Solutions NZ Limited is entitled to be paid 75% of the applicable minimum hourly rate for each hour of a sleepover:
if an employee would have received a greater amount immediately before the date of commencement of this order, he or she will be entitled to that greater amount:
after 1 January 2013, an employee of Care Solutions NZ Limited will be entitled to be paid 100% of the minimum hourly wage.