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 of litigation between Te Taiwhenua o Heretaunga Trust and certain of its employees. The litigation relates 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 similar 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 of the Act already applies to Te Taiwhenua o Heretaunga Trust, because it applies to all employers in the health and disability sector funded through Vote Health. It extinguishes claims relating to sleepovers performed before the Act commenced, if those claims were lodged after 5 pm on 2 September 2011. Claims filed before that time are preserved. Section 9 of the Act extinguishes claims by employees of Idea Services Limited and Timata Hou Limited for sleepover wages, including those that would otherwise have been preserved. Clause 5 extends the effect of section 9 of the Act to employees of Te Taiwhenua o Heretaunga Trust and will have the effect of extinguishing existing claims for sleepover wages that were lodged by its employees before 5 pm on 2 September 2011.

Clause 6 extends the effect of subpart 2 of Part 2 of the Act (which implements the Idea settlement) to Te Taiwhenua o Heretaunga Trust and its employees, but with the modifications set out in clauses 7 to 10.

Clause 7 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 Te Taiwhenua o Heretaunga Trust.

Clause 8 modifies section 20 of the Act, which sets out when back wages must be paid. It provides that back wages due to employees of Te Taiwhenua o Heretaunga Trust must be paid no later than 2 months after the date of commencement of this order.

Clauses 9 and 10 exclude sections 21 and 22 of the Act from application in respect of employees of Te Taiwhenua o Heretaunga Trust. Those sections facilitate a staged progression to payment of the minimum wage for sleepovers performed in the period beginning on 1 July 2011 and ending with the close of 30 June 2013. The effect of excluding the application of these sections is that employees of Te Taiwhenua o Heretaunga Trust who perform or performed sleepovers in that period are entitled to be paid the applicable minimum wage for each hour of the sleepover.