This note is not part of the order, but is intended to indicate its general effect.

This order, which comes into force on 5 April 2013, modifies and extends the operation of the Sleepover Wages (Settlement) Act 2011 (the Act) to give effect to a settlement agreement between The Home and Family Society Christchurch Incorporated (the specified employer) 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 (theIdea 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.

The specified employer 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 the specified employer. 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 the specified employer.

Clause 7 extends the application of subpart 2 of Part 2 of the Act (which implements the Idea settlement) to the specified employer 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 the specified employer. 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 the specified employer is extended to the close of 31 October 2011; and

• employees will be entitled to back wages for sleepovers if they made a claim prior to 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 13.5 to represent the number of hours of a sleepover performed by employees of the specified employer.

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 the specified employer 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 the specified employer 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 the specified employer 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 for a sleepover performed in the period 1 November 2011 to 31 December 2012 immediately before the date of commencement of this order, he or she will be entitled to that greater amount.

Clause 13 also provides that after 1 January 2013, an employee of the specified employer will be entitled to be paid 100% of the minimum hourly wage.