Parliament has passed legislation under urgency to pay health and disability sector workers the minimum wage for sleepovers.
The Sleepover Wages (Settlement) Bill passed unanimously in Parliament on Thursday.
Health Minister Tony Ryall said the legislation resolved a long-running dispute and gave certainty to the health and disability sector.
"It ensures that some of the most vulnerable people continue to receive quality care in the community, while addressing the recent decision made by the Court of Appeal and the Employment Court in relation [to] Idea Services Limited v Phillip William Dickson."
Service and Food Workers Union national secretary John Ryall said the court battle had cost the union "pretty close to half a million" dollars but when the return on the investment was considered, it was "pretty good".
The win was a major highlight of his 29 years in the union movement.
At meetings discussing the settlement, he had been seeing "the joy on people's faces after such a long struggle".
It was the largest wage arrears settlement in the history of the union movement in New Zealand, he said.
Asked about the desirability of the legislation being passed under urgency, when it has ramifications for more than just union members, Mr Ryall said there had been a select committee process.
The union had not wanted to see the matter delayed until February.
Mr Ryall said the $27.5 million pledged by the Government would pay half of the back pay to 2005, and employers would pay the rest.
The legislation phases in the minimum wage. The full rate is not payable until July 2013, but Mr Ryall hoped employers would match IHC/Idea Services in paying in full from December 25, 2012.
