Aged Residential Care Provider Newsletter
19 May 2017
This newsletter is designed to assist Aged Residential Care (ARC) providers in implementing the Care and Support Workers (Pay Equity) Settlement. We are sending these newsletters out every week to reiterate key messages; provide updates on ongoing processes; and provide information on upcoming events.
This edition outlines recent implementation activities and developments including:
· Key messages
· Key dates
· What’s happening this coming week
· Qualifications: which are equivalent to the New Zealand Certificate in Health and Wellbeing
· Diversional Therapists/activity co-ordinators: eligibility under the Settlement
· Information sessions: these are happening next week, find out where and how to register
· Workforce Translation Tool
· Operational Policy Document
· Frequently Asked Questions
· Contact the pay equity implementation team
Key messages
On 18 April 2017, the Government announced a $2 billion pay equity settlement for 55,000 care and support workers in New Zealand’s aged and disability residential care and home and community support services.
From July 1, workers will receive a pay rise between 15 and 50 per cent depending on their qualifications and or experience. The settlement means over the next five years, the workforce will see their wages increase on a range between $19 and $27 per hour.
Legislation will be introduced to Parliament shortly to implement the settlement agreement and enshrine the new pay rates in law.
This means providers have a legal obligation to ensure employees receive their increased wages in the first pay day from their employer (i.e. weekly or fortnightly, depending on their normal pay run).
A copy of the Settlement Agreement can be found on the Ministry’s website: http://www.health.govt.nz/system/files/documents/pages/care-support-workers-pay-equity-settlement-agreement-signed-8may17.pdf.
Implementation approach
In order for providers to commence payment to qualifying employees from 1 July 2017, a process to pass additional funding to providers is required. In the Aged Residential Care sector, for most services this will be done by an increase to the prices paid for those services.
For the national ARC contract, there will be an increase to the price paid for the ARC nationally contracted services (rest home, hospital, dementia and psycho geriatric). This will be delivered through the usual annual national ARC contract process and DHBs will communicate the process and timeframes for this through the usual communication channels. Providers should refer any questions on this process to their industry association body or DHB Central TAS.
For other services paid at a bed day rate (e.g. facility-based respite care and palliative care), the pay equity settlement payment will also be made by increasing the prices paid for those services.
Claiming for union ratification meetings
In line with the Care and Support Workers (Pay Equity) Settlement, the Government will reimburse employers for wages at the rate of $25 per care and support worker verified by the union and the employer as having attended a ratification meeting. Claim forms must be submitted to the Ministry, please download the form here: http://www.health.govt.nz/new-zealand-health-system/care-and-support-workers-pay-equity-settlement/pay-equity-settlement-information-providers. Ratification claims received by 31 May will be paid on 20 June 2017. For ratification claims received after 31 May the Ministry will aim to process them within 10 business days but no earlier than 23 June 2017.
Operational Policy Document and Workforce Translation Tool
The Operational Policy Document, which provides detailed guidance on the implementation of the Settlement Agreement, is available on the Ministry’s website.
The Workforce Translation Tool needs to be completed by all ARC providers by 2 June in order for accurate funding to be paid on time.
Both documents can be downloaded from: http://www.health.govt.nz/new-zealand-health-system/care-and-support-workers-pay-equity-settlement/pay-equity-settlement-information-providers/pay-equity-settlement-aged-residential-care
The Workforce Translation Tool is being used because:
· The tool helps providers to work through eligibility and translation in order to make changes in their payroll systems
· The Ministry needs to provide assurance to Ministers that providers will be in a position to accurately pay eligible employers the correct rates from 1 July.
· The Ministry needs to provide government with information about the outcomes and benefits of its investment to settle historic pay equity claims for care and support workers: this means the Ministry must be able to conduct workforce analysis to provide an accurate picture of the care and support workforce, and monitor changes over the course of the settlement period. This includes changes to the workforce’s size, makeup, stability and qualifications.
Key dates
· By 31 May: Claim forms for employee attendance at union ratification meetings are to be submitted to the Ministry, please download the form here: http://www.health.govt.nz/new-zealand-health-system/care-and-support-workers-pay-equity-settlement/pay-equity-settlement-information-providers. Ratification claims received by 31 May will be paid on 20 June 2017. For ratification claims received after 31 May the Ministry will aim to process them within 10 business days but no earlier than 23 June 2017.
· By 2 June 2017: ARC providers must submit completed Workforce Translation Tools.
· By 1 July 2017: Legislation will be progressed through Parliament to give effect to the Settlement Agreement and ensure the new wage rates are passed onto workers from 1 July.
· From 1 July 2017: Providers have a legal obligation to ensure employees receive their increased wages in the first pay day from their employer (i.e. weekly or fortnightly, depending on their normal pay run).
· From 1 July 2017: Providers will advise funders that they have commenced making payments to employees. Unions will also play a role in ensuring that employees have received the new wages.
What’s happening this coming week
The focus for ARC providers over the coming week should be on collecting and submitting data, gathering staff qualification information, preparing claim forms for employee attendance at union ratification meetings, contacting pay roll providers and reviewing the Ministry’s frequently asked questions on the Settlement.
Qualifications
Under the Care and Support Workers (Pay Equity) Settlement, eligible workers will transition to an appropriate step on the new pay scale based on qualifications and length of service, whichever is the most advantageous for the worker.
We have been working with NZQA and Careerforce to confirm which qualifications are equivalent to the New Zealand Certificate in Health and Wellbeing. These are listed in the factsheet available on our website here:. http://www.health.govt.nz/new-zealand-health-system/care-and-support-workers-pay-equity-settlement/pay-equity-settlement-information-providers
Please use this list to determine which pay band employees with qualifications other than the New Zealand Certificate in Health and Wellbeing should be translated to from 1 July.
If you have employees with a qualification not listed in the table of equivalent qualifications, translation will be based on the length of service with their current employer. If, following assessment, is determined that the worker should be translated at a higher step than in the initial translation the worker will be entitled to back pay and the funding for the provider will be managed in the wash-up (please see ‘Implementation Guidance’ in the factsheet available on our website here: http://www.health.govt.nz/new-zealand-health-system/care-and-support-workers-pay-equity-settlement/pay-equity-settlement-information-providers).
Diversional Therapists and/or Activity
Co-ordinators
Diversional therapists and/or activity co-ordinators are eligible under the Care and Support Workers (Pay Equity) Settlement.
We understand that different organisations use different terminology, including activity co-ordinators, activity officers, diversional therapists, and possibly other titles.
These workers are eligible, providing they also meet the following multi step process below:
1. First, is to determine whether the service is covered by the Settlement Agreement; and
2. Second, is to test whether the worker is within scope of the Settlement Agreement.
3. Third, the service is funded by public monies not private.
We recommend you look at the eligibility information in section 3 of the draft Care and Support Workers (Pay Equity) Settlement operational policy document and the Settlement Agreement. The Settlement Agreement is available for download at this webpage: http://www.health.govt.nz/new-zealand-health-system/care-and-support-workers-pay-equity-settlement
Operational Policy Document
The Operational Policy Document, which provides detailed guidance on the implementation of the Settlement Agreement, is available on the Ministry’s website here: http://www.health.govt.nz/new-zealand-health-system/care-and-support-workers-pay-equity-settlement/pay-equity-settlement-information-providers.
Workforce Translation Tool
The data collection and submission process for providers consists of the following steps:
- Download the Workforce Translation Tool from the following Ministry of Health webpage: http://www.health.govt.nz/new-zealand-health-system/care-and-support-workers-pay-equity-settlement/pay-equity-settlement-information-providers/pay-equity-settlement-aged-residential-care
- Review the Workforce Translation Tool in correspondence with the guidance document in Section 7. Please contact the Ministry on as soon as possible regarding any questions or clarifications.
- Complete the tool using payroll reports for the eligible workforce as at 1 May 2017.
- Upload the tool to this website: http://tinyurl.com/MoH-NZ-PE1
The Workforce Translation Tool must be uploaded by Friday 2nd June. Providers will need to enter their contact information when they upload their completed submission.
The central implementation team may contact you should there be any need to clarify your data submission.
Support is available
A central Ministry team will be actively working with providers to help them with completing the Workforce Translation Tool. Where providers are unsure they will meet the 2 June deadline they need to flag this as soon as possible with the team at or on 0800 855 066 so they can proactively work with providers.
As questions are answered these will be updated in the Q&A section of this document and/or via the Ministry website http://www.health.govt.nz/new-zealand-health-system/care-and-support-workers-pay-equity-settlement
In the coming week a central phone number will be established. Providers will be notified of this number once it is available.
Information sessions for ARC providers
The Ministry is hosting information sessions around the country that provide an overview of the Care and Support Workers (Pay Equity) Settlement Agreement and outline the required steps to implement the agreement by 1 July.
The information sessions will be an opportunity for management, financial analysts, or operations managers to ask questions on the Operational Policy Document. Note that unions are holding separate information sessions for union representatives or staff, and that the information sessions are not intended for union representatives or staff.
Attendance at these information sessions is optional. They are just one of several channels through which we are providing the details, taking questions and listening to feedback.
If you cannot attend any sessions, please email your questions about pay equity implementation to and someone from our team will respond to you as soon as possible.
To register, please email the following information to by 5pm Friday 19 May:
· Subject line: Location of session
· Body of email: Names and contact details of attendees (maximum of two per providers due to venue capacity).
Information sessions /Date / City / Venue / Address / Name of room held / Time /
Monday 22 May / Wellington / Te Papa / 55 Cable Street, Wellington / Rangimarie Room 1 / 9.30am - 11.30am
Tuesday 23 May / Auckland / Alexandra Park / Greenlane Road West, Epsom, Auckland / Tasman Room, Level 1 / 9.30am - 11.30am
Wednesday 24 May / Christchurch / Riccarton Park / 165 Racecourse Road, Christchurch / Balmarino Room / 9.30am - 11.30am
Thursday 25 May / Hamilton / FMG Stadium Waikato / 128 Seddon Road, Frankton, Hamilton / HLive Lounge / 9.30am - 11.30am
Friday 26 May / Dunedin / The Dunedin Centre / 1 Harrop Street, Dunedin / Conference Room 1 / 9.30am - 11.30am
Frequently asked questions
1. What about an employees’ other conditions of employment?
Generally, all other conditions of employment remain the same. However, service and qualification allowances will be extinguished because they have been replaced by the new qualifications-based pay structure. Weekend and night penal rates in employment agreements will remain but those that are calculated as a percentage of base pay will be converted to allowances.
2. How do I know if certain workers and/or certain services are eligible?
A multi-step decision process needs to be used to assess eligibility of any particular worker:
· Determine whether the service is covered by the Settlement Agreement; and
· Test whether the worker is within scope of the Settlement Agreement.
· Establish whether the service is funded by public funding not private.
We recommend you look at the eligibility information in the Settlement Agreement that can be downloaded from this webpage http://www.health.govt.nz/new-zealand-health-system/care-and-support-workers-pay-equity-settlement and section 3 of the Care and Support Workers (Pay Equity) Settlement operational policy document that can be downloaded from this webpage http://www.health.govt.nz/new-zealand-health-system/care-and-support-workers-pay-equity-settlement/pay-equity-settlement-information-providers.
3. What types of work does the settlement not cover?
Settlement parties agreed that the settlement does not include behavioural support services, caregiver support, child development services, environmental support, funded family care, mental health services, and services arranged privately by clients. Meanwhile, the Ministry of Social Development and Ministry for Vulnerable Children Oranga Tamariki have agreed in principle to enter into negotiations with unions and providers on the basis that vocational and disability workers they fund will be covered by terms consistent with the Settlement Agreement.
4. What if some of my employees hold qualifications other than the NZQA levels 2, 3 or 4 New Zealand Certificate in Health and Wellbeing?
Please see this factsheet for more information: http://www.health.govt.nz/new-zealand-health-system/care-and-support-workers-pay-equity-settlement/pay-equity-settlement-information-providers
5. Some of my employees perform services that are in scope some of the time, and services that are out scope some of the time. How do I determine their accurate pay rate?
Some employees can be receiving more than one pay rate. Employers must pay the in scope services at the appropriate pay band when work is performed on these services. Out of scope services pay rates are a business decision for the provider. If these are at a separate rate, then this should be reflected with dual rates in a pay roll system.
6. What pay band should an existing staff member with 12 years or more current continuous service but no qualifications be moved to after 1 July?
All existing care and support workers who reach 12 years current continuous service with their employer after 1 July 2017 and who have not achieved a Level 4 Certificate will move on to the following rates unless there are genuine reasons based on reasonable grounds that the employee’s employer did not provide the support necessary for the employee to achieve the Level 4 qualification, in which case the employee will be entitled to move to the Level 4 step above. Any dispute about the provision of the necessary support will be dealt with through the normal dispute resolution processes.