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.
RECEIVE OUR NEWSLETTERS
See our newsletter archive here.
Would you like to receive quarterly newsletters from ARL Lawyers? Please fill in the form below to automatically join our mailing list. You may unsubscribe at any time.