Top court to look at sleep pay

John Ryall. Photo / supplied

The Supreme Court has granted the IHC leave to appeal a controversial court ruling requiring staff to be paid the minimum wage for sleepover shifts.

The union representing Idea Services worker Phil Dickson, who first raised the issue before the Employment Relations Authority, says it is ready to argue the case before the Supreme Court.

Service and Food Workers Union national secretary John Ryall said the IHC claim had been defeated before the ERA, the Employment Court and the Court of Appeal.

"We are hopeful a settlement can be negotiated with the Government prior to us having to go through another legal process, but we are quite prepared to turn up at the Supreme Court to reargue our case for the fourth time," he said.

The appeal court said sleepovers constituted "work" under the Minimum Wage Act because significant responsibility and restrictions were imposed on workers overnight.

Instead of a shift allowance of about $30, staff should get at least the minimum hourly wage.

But, in a decision issued yesterday, the Supreme Court granted Idea Services leave to appeal on the following grounds:

* Whether sleepovers constitute "work" under section 6 of the Minimum Wage Act 1983; and


* If so, whether the act is complied with if an employee's average rate of pay over a pay period is not less than the prescribed minimum.

Health Minister Tony Ryall has said the ruling would cost more than $500 million over three years and changing the law could be considered.

- NZPA