Home and Community Support Services Provider Newsletter
26 May 2017
This newsletter is designed to assist Home and Community Support Services (HCSS) providers in implementing the Care and Support Workers (Pay Equity) Settlement. We are sending these newsletters out weekly to reiterate key messages; provide updates on ongoing processes; and provide information on upcoming events.
This edition outlines recent implementation activities anddevelopments including:
- Key messages
- Key dates
- What’s happening this coming week
- Legislation
- Qualifications update
- Ratification
- Data collection privacy principles
- 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.
The Care and Support Workers (Pay Equity) Settlement Bill was introduced to Parliament on 25 May.
This means providers have a legal obligation from 1 July 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:
Implementation approach
The Operational Policy Document, which provides detailed guidance on the implementation of the Settlement Agreement, is available on the Ministry’s website.
To receive an advance interim payment, providers had to complete and return their Data Collection Tool by 24 May.
The interim process will revert back to normal contracting and funding arrangements within 12 months or earlier if agreed between the Ministry, funders and providers.
Key dates
- By 24 May 2017: HCSSproviders need to submit completed Data Collection Tools.
- By 31 May 2017: Further information on the process to claim for an employee’s time to attend a union ratification meeting is available by downloading the ratification meeting claim form on this webpage.
- 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
Thank you to providers who submitted their data collection tools by the 24 May deadline. We are now reviewing this information and will contact providers directly if there is any need to clarify their data submissions.
The focus for HCSS providers over the coming week should be on 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.
Legislation
The bill to give effect to the Care and Support Worker (Pay Equity) Settlement Agreement passed its first reading in Parliament on 25 May with unanimous support.
The bill enshrines the new pay rates in law and ensures providers pass on the $2 billion of wage increases over five years to the 55,000 workers in aged and disability residential care, and home and community support services around the country.
The introduction and first reading of this bill is a significant milestone in the implementation of the settlement, following Cabinet approval in April and signing of the agreement in early May.
The bill has been sent to the Health Select Committee and is due to be reported back to Parliament by 6 June 2017. Submissions requests will be sent directly to groups and individuals.
The bill must be fast-tracked through Parliament to ensure it is passed by 1 July.
More information on the settlement is available at on the Ministry of Health website at:
Qualifications update
The industry training organisation, Careerforce, is reviewing qualifications recognised by the New Zealand Qualifications Authority for relevance to the work undertaken by care and support workers and equivalent Level on the NZQF. As qualifications are assessed relevant and equivalent they will be posted on the Careerforce website:
The qualifications under review include those forwarded by employers.
If a qualification is not on the Careerforce list, translation will be based on length of service with the current employer.
If, following assessment by Careerforce a qualification is added to the list, eligible workers may move to a higher band on the payscale and be entitled to back pay to 1 July 2017.
Registered nurses
If New Zealand trained enrolled or previously registered nurses are working as care and support workers, they should be translated to Level 4 on the new pay scale.
The Ministry is working with Careerforce to determine how best to assess the relevance of other qualifications higher than Level 4 on the New Zealand Qualifications Framework, for the purpose of transition of existing care and support workers to the new pay scale from 1 July 2017.
Ratification
The ability of all care and support workers (union members and non-union members) to have the opportunity to vote in the ratification process for the Care and Support Workers (Pay Equity) Settlement Agreement is fundamental to the settlement. The Ministry of Health is supporting the implementation of the ratification process and in good faith encourages all employers to comply with this process.
Although the Care and Support Workers (Pay Equity) Settlement Bill has now passed its first reading in Parliament, the ability of all care and support workers to vote in the ratification process remains important.
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:
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.
Data collection privacy principles
Before requesting any information, the Ministry assessed the proposed data collection information fields against all twelve information privacy principles in the Privacy Act. In doing so, the Ministry identified key risks and developed appropriate risk responses. This information is included in the short-form Privacy Impact Assessment (PIA), which is published on the Ministry website:
Frequently asked questions
- I did not complete and submit my Data Collection Tool by the 24 May deadline. What should I do?
If the pay equity implementation team has not contacted you already, please make contact to discuss how we can help. It is important the Ministry receives this data.
- What about an employee’sother 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.
- 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 andsection 3 of the Care and Support Workers (Pay Equity) Settlement operational policy document that can be downloaded from this webpage
- 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 ChildrenOrangaTamariki 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.
- 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:
- Are diversional therapists and/or activity co-ordinators eligible?
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:
- 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.
- 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.
After 1 July 2017 / On or after 1 July 2018 / On or after 1 July 2019 / On or after 1 July 2021
$22.50 / $23.50 / $24.50 / $26.00
- How is continuous service defined?
Current continuous service is considered to be service with the employee’s current employer which includes any service transferred under the Employment Relations Act 2000 (the Act).
In summary, the Act sets out the process for an employer to use where a business is sold, transferred or contracted out and requires employment agreements to contain ‘employee protection provisions’. Specific groups of employees, in certain situations, may transfer to the new employer on their existing terms and conditions, including having any transferred service recognised as continuous service.
- Are the costs to employers from the settlement fully funded?
Employers will receive additional funding towards offsetting the additional costs imposed by the legislation*. Employers will also receive the benefits of lower turnover due to increased wages and a more capable and skilled workforce through access to training and qualifications.
Frequently asked questions can be found in employer factsheet which is on the Ministry website
Contact the pay equity implementation team
There is a dedicated pay equity implementation email address, , which you can send questions to at any time. Someone from our team will respond to you as soon as possible.
For more information visit health.govt.nz.
26 May 2017
Pay Equity Settlement Implementation1