Employee Factsheet: Care and Support Workers – Dec 2017
Employee fact sheet Mental Health and Addiction Support Worker (Pay Equity) Settlement Agreement June 2018On 19 June 2018, the Government announced a settlement with unions and employers to extend the 2017 Care and Support Workers (Pay Equity) Settlement Act to 3,800 mental health and addiction support workers. The agreement means that workers will receive new wage rates and improved access to training and will help ensure we have a stable workforce to look after some of the most vulnerable New Zealanders.Workers’ wages will increase to between $19 and $27 per hour over five years. The new wage rates will also be back-dated to 1 July 2017, when the Act came into effect.Wage rates for current workers employed before 1 July 2017All current mental health and addiction support workers, employed before 1 July 2017, move on to the following scale, either at the step that recognises their qualifications or their service with their employer, whichever is the most advantageous to the employee. The pay rates for year one are for back-pay only.Pay scale 1: Transition rates for workers employed before 1 July 2017Qualification or length of service1 July 2017 - 30 June 2018Year 11 July 2018 - 30 June 2019Year 21 July 2019 - 30 June 2021Year 3/41 July 2021 -30 June 2022Year 5L0 or <3 years’ service$19.00$19.80$20.50$21.50L2 or 3+ years’ service$20.00$21.00$21.50$23.00L3 or 8+ years’ service$21.00$22.50$23.00$25.00L4 or 12+ years’ service$23.50$24.50$25.50$27.00The qualification must be, or assessed by Careerforce as equivalent to, Level 2, 3 or 4 on the New Zealand Certificate in Health and Wellbeing from an NZQA-accredited provider.All current mental health and addiction support workers who reach 12 years current continuous service with their employer after 1 July 2017 and who have not achieved a Level 4 qualification, 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.Pay scale 2: Workers with greater than 12 years’ service without a Level 4 qualificationQualifications and length of serviceAfter 1 July 2017 Year 1On or after 1 July 2018 Year 2On or after 1 July 2019 Year 3/4On or after 1 July 2021 Year 5 onLess than L4 and 12+ years’ service$22.50$23.50$24.50$26.00Translation for workers employed on or after 1 July 2017The minimum rates and progression for mental health and addiction support workers employed on or after 1 July 2017 are:Qualification 1 July 2017 - 30 June 2018Year 11 July 2018 - 30 June 2019Year 21 July 2019 - 30 June 2021Year 3/41 July 2021 -30 June 2022Year 5L0$19.00$19.80$20.50$21.50L2$20.00$21.00$21.50$23.00L3$21.00$22.50$23.00$25.00L4$23.50$24.50$25.50$27.00Current continuous serviceThe definition of current continuous service for mental health and addiction workers is different than that for those workers covered by the 2017 settlement. This recognises that some workers may have moved between sectors and/or employers due to their exclusion from the 2017 settlement.For the period from 1 July 2017 to 30 June 2018 current continuous service includes:Service recognised as continuous for the purpose of transferring workers (under the provisions of the Employment Relations Act 2000); Where an employee was a mental health and addiction support worker between 1 July 2017 and 30 June 2018 and:left their employment and the sector; ortransferred to another employer and is performing mental health and addiction services; ortransferred to another employer as defined in the 2017 settlement agreement; or changed roles with their current employer to a non-support worker role; ortransferred to a non-funded service.QualificationsIn accordance with the settlement agreement, the qualification must be a: Level 2, 3 or 4 New Zealand Certificate in Health and Wellbeing issued by NZQA; or A qualification that is recognised by Careerforce (the relevant industry training organisation) as being equivalent to the New Zealand Certificate in Health and Wellbeing; oran overseas qualification that is equivalent to a qualification described in paragraph a) or b).It is the role of Careerforce, the Industry Training Organisation, to assess domestic and international qualifications for equivalence to the NZ Certificate in Health and Wellbeing (Levels 2, 3 and 4). As workers’ qualifications are assessed as equivalent, the qualification is posted on the Careerforce website (.nz/pay-equity/equivalencies). The qualifications under review include those forwarded by providers and employees. If you have any questions about qualification equivalency please contact Careerforce on 0800 277 486 or email info@.nz with ‘Pay Equity Qualification Query’ in the subject line. Examples of what the settlement means for youMinimum Wage: On 30 June 2017, Jo was a mental health and addiction support worker earning $15.75 per hour. She had four years’ experience and a Level 0 qualification. On 1 July 2017 her pay increased to $20 per hour as workers translate on the greater of their length of service or qualification level. Jo will receive back-pay at the difference between her old rate and her new rate. On 1 July 2018 (year 2 of the settlement) her rate will go up to $21 per hour. Over 12 years’ experience without Level 4 qualification: On 30 June 2017, Patricia had 11 years’ experience and a Level 3 qualification. She was paid $16.22 an hour. On 1 July 2017 her pay rate increased to $21 per hour. In February 2018 she reached 12 years’ continuous service and moved to pay scale 2 because she doesn’t have a Level 4 qualification. She will be earning $22.50 per hour from the date she reaches 12 years’ continuous service. Patricia will receive back-pay at the difference between her old rate and her new rates. Employed after 1 July 2017: All eligible mental health and addiction workers who started employment after 1 July 2017 will progress through the pay bands on the basis of qualifications only. Josh started as a new employee for a provider in October 2017. He has a Level 2 qualification. His pay rate would therefore be $20 per hour. This would increase to $21 at 1 July 2018 (year 2 of the settlement).Continuous Service: Sally has no qualifications. At 30 June 2017 she had 5 years 10 months’ continuous service with the same employer. However, she resigned from her support role in August 2017 and moved to a new industry. In November 2017 she decided to go back to mental health and addiction support work. This period would be counted as continuous service and she would now have six years, five months’ continuous service and her pay rate would be $20 an hour. Qualification not equivalent to NZ Certificate in Health and Wellbeing Marion has been working as a mental health worker since 2015 and has a BA in psychology. Careerforce has assessed this qualification as not being equivalent to the NZ Certificate in Health and Wellbeing. Marion was paid $21 per hour. From 1 July 2017 the minimum hourly rate Marion may be paid is $19 per hour. Because Marion is already paid more than this her employer is not obliged to increase her hourly rate. However, she cannot be paid less than she is already receiving. Marion is working with her employer and Careerforce to obtain a Level 4 New Zealand Certificate in Wellbeing qualification. Her minimum hourly rate will increase when she is awarded the qualification.EligibilityLearn about mental health and addiction pay equity eligibility in the ‘Are you eligible?’ fact sheet.TrainingThe Mental Health and Addiction Support Worker (Pay Equity) Settlement Act requires employers to provide support to enable eligible workers to reach the following levels on the NZ Qualifications Authority Health and Wellbeing Certificate below:Level 2 NZ Certificate – within 12 months of employment,Level 3 NZ Certificate – within 3 years of employment,Level 4 NZ Certificate – within 6 years of employment.Note that while this is the employer’s obligation in the settlement agreement, there may be an expectation in the employer’s contract that achieving a Level 4 is the minimum for mental health and support workers and that this be achieved within 24 months of starting employment.Tax and other mattersWorking for Families Tax CreditsThe pay increase from 1 July may have affected payments for Working for Families tax credits.?Employees should contact IRD to check if this is the case. IRD will guide employees to make sure they get paid the right Working for Families tax credits and avoid an overpayment.Changes can be make online anytime through? HYPERLINK "" myIR Secure Online Services or call Inland Revenue on 0800 227 773, Monday to Friday 8am to 8pm, and Saturday 9am to 1pm from a landline or mobile phone.Student loans, KiwiSaver, and ACCIf an employee’s pay increased they may notice student loan repayments and KiwiSaver contributions changed too. An increase in wages is likely to see the amount deducted increase.If the weekly repayment threshold of $368 per week for student loans has been exceeded, there may be deductions. Employees need to ensure they are using the correct tax code.ACC payments during the period of back-pay may need to be adjusted to reflect any higher wage rate.Employees’ other conditions of employmentGenerally, all other conditions of employment remain the same. However, service and qualification allowances have been extinguished because they have been replaced by the new qualifications-based pay structure. Weekend and penal rates in employment agreements remain but those that are calculated as a percentage of base pay have been converted to allowances.Questions and answersI’m a male support worker, am I covered by this settlement? Yes, the settlement covers both male and female eligible support workers.Are only union members covered by the settlement?No, all eligible workers are covered by the settlement, whether or not they are members of a union. I work in community mental health or addictions. Am I covered by this settlement?Yes, this covers all workers whose primary role is to provide mental health and addiction support to people in the community (providing they meet the requirements of the three-step process).Do I get paid for attending the ratification meeting?Yes, you will be paid for one hour providing you fill out the attendance sheet.How and when will I receive back pay? If you are eligible for back pay this will go back to 1 July 2017. It will be based on the difference in your pay rate on the 30 June 2017 and your new pay rate for all hours worked during the period, and any service or qualification steps that need to be recognised. If you left your mental health and addiction support worker job between 1 July 2017 and 1 July 2018 you will be entitled to the relevant back pay for the hours you worked as an eligible mental health and addiction support worker during that time. When will I start receiving my new pay rate?Eligible employees will start receiving their new pay rate from the first full pay period in August 2018. How do I know where I start on the pay scale?You will move on to the new pay scale to the pay rate that corresponds with your length of service or your qualification, whichever is higher.If you moved from one employer in the mental health and addiction sector to another employer during the period 1 July 2017 to 1 July 2018, your service may be counted as continuous for the purposes of translation to the new pay scale.The rates will increase in July 2019 and again in 2021. You will get these increases as well as moving up to the next step as you achieve the qualifications or service required.This new pay scale will replace your current pay rate and any pay scales in your employment agreement. Service and qualification allowances have been extinguished because they have been replaced by the new qualifications-based pay structure. Weekend and penal rates in employment agreements remain, but those that are calculated as a percentage of base pay have been converted to allowances.What if I am paid a higher pay rate than the rate provided in the new pay scale?Your pay will not drop. You will stay on your current pay rate until you move to a higher pay rate on the new pay scaleHow can I move up the pay scale when my employer doesn’t offer qualifications?As part of the settlement employers must take all reasonably practical steps to ensure employees are able to complete qualifications. You also have the option of moving up the pay scale based on service if you remain with the employer for whom you were working on the 1st of July 2017.How do I make sure that my employer pays me the correct rate?The new pay rates will be passed into New Zealand law and until this occurs they can be enforced through the settlement agreement. What happens if I move jobs and work for another mental health and addiction support service employer? If you resign and move to another mental health and addiction support service employer you will only be entitled to be paid based on your qualification level and not your service (with the exception of the period 1 July 2017 to 30 June 2018). My employer changed because the company that I worked for was bought out by another company or changed hands. Will my service from the old employer count towards my pay rate?Yes. Provided you transferred with continuous service to the new employer, it will count towards your pay rate. What if I don’t want to do a qualification?You will be encouraged and supported to do the training but if you don’t want to, you can progress through service steps provided you stay with the employer for whom you worked on the 1st of July 2017. If you get to 12 years’ service after that date you will be on pay scale 2 which is $1.00 per hour less than pay scale 1.Does my university degree entitle me to move immediately to the top rate?The top rate is for employees who have a NZ Certificate in Health and Wellbeing Level 4 or its equivalent.Equivalency of other qualifications, including degrees, is decided by Careerforce, the Industry Training Organisation. SupportIf you have any questions relating to the settlement, please contact your employer in the first instance.If your issue remains unresolved you can contact your union or someone who can give you advice and represent you if needed: PSA: phone 0508 367 722 or email enquiries@.nz E tū: phone 0800 186 466 or email support@etu.nz You can also contact: Employment New Zealand: phone 0800 209 020your local Citizens Advice Bureau: phone 0800 367 222This information is not a substitute for the Mental Health and Addiction Support Worker (Pay Equity) Settlement Agreement 2018. ................
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