Business and union representatives will head back to the Employment Court this week to give further submissions on matters related to a July decision about a community service worker's sleepover rate.
The full court agreed with an earlier Employment Authority Relations Authority determination that sleepover time for an Idea Services employee was work, but it did not make a ruling on whether the provisions of the Minimum Wages Act would be satisfied by an employer "averaging" the wages of employees.
Idea Services argued that the Act conditions would be met if, at the end of a fortnightly pay period, the employee's wages were divided by the total hours worked and the amount came to not less than $12.50 an hour (the minimum wage).
Under this arrangement, rates paid for sleepover times could still be under the minimum rate, but would be boosted by higher paid work during other hours.
However, opposing counsel, disagreed, saying payment had to be on an hour-by-hour basis with each hour being paid at at least $12.50 an hour.
The issue is being watched closely by a variety of health service providers along with boarding schools.
It has been suggested that if the estimated 15,000 sleepover workers were paid the minimum wage it would ultimately cost the Government many millions of dollars.
The court said the averaging matter did not appear tohave been determined authoritatively since the Minimum Wage Act in 1945 and the issues could affect many other employers and employees in sectors where low wages were paid.
Accordingly, the court decided to give Business New Zealand and the New Zealand Council of Trade Unions the chance to be heard on the matter.
Both have confirmed they will have their say at the hearing in Wellington on Thursday.
Counsel for the two parties involved in the Idea Services case will also have the opportunity to add to their earlier submissions.
