Sleepover work is now to be paid at the minimum wage rate with workers compensated with ‘back-wages’ for sleep-over work performed from the period 1 July 2005 to 30 June 2011. The Sleepover Wages (Settlement) Act 2011 (‘the Act’) came into force on 18 October 2011 as a result of the Court of Appeal decision in Idea Services Ltd v Phillip Dickson. The Court of Appeal unanimously held that sleep-overs by workers constituted work under the Minimum Wage Act 1983. As such, the Act obliges employers to compensate workers for back-wages at the minimum wage rate for sleep-over work performed from the period 1 July 2005 to 30 June 2011. Employers are required to contribute 50% towards the liability for each sleep-over falling within this timeframe with the Crown funding the remaining 50%. Employers are also required to pay 8% annual leave for the time incurred while an employee is employed during a sleep-over. To be eligible for a back-pay of sleep-over wages, employees must have lodged a claim with the Employment Relations Authority by 2 September 2011. For more detailed information on this matter, please visit www.ihc.org.nz/newsevents/sleepover-updates.
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