Home and Community Support (Payment for Travel Between Clients) Settlement Act 2016

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On 7 August 2013, proceedings were lodged with the Employment Relations Authority claiming that the time spent by the applicant in travelling between clients to whom the applicant provided home-based care and support was work for the purposes of section 6 of the Minimum Wage Act 1983:


In light of these proceedings, Cabinet authorised the Ministry of Health to enter negotiations with certain unions, providers of home-based and community-based care and support services, and District Health Boards with a view to reaching an enduring, affordable, and sustainable funding solution for paying workers such as the applicant for the time and costs of travelling between each of their clients:


The negotiations began in April 2014:


In August 2014, the parties agreed to a settlement to the effect that—


certain employees who provided particular services would be compensated, at no less than the minimum wage, for a fair approximation of the time spent travelling between clients on or after 1 July 2015; and


the employees would be compensated, at no less than 50 cents per kilometre, for a proportion of the costs associated with travelling between clients on or after 1 March 2016; and


the employees would abandon any claim under the Minimum Wage Act 1983 for payment for travel between clients undertaken by them before the commencement of this Act; and


no employee was to be financially disadvantaged as a result of the operation of the settlement agreement and this Act; and


the Accident Compensation Corporation, while not a party to the settlement, would enter into similar arrangements in respect of the home and community-based support services that it funds:


To implement aspects of this settlement and the similar arrangements that have been entered into by the Accident Compensation Corporation, legislation is required:

The Parliament of New Zealand therefore enacts as follows: