Disabled workers to benefit from law change

Disabled workers who are in sheltered workshops or other alternative employment will benefit from the upcoming Repeal of the Disabled Persons in Employment Act, says Disabilities Minister Ruth Dyson.

"Disabled workers and their families need to be assured that they will benefit economically from this law change. I wish to correct the inaccurate impression that has been put about by some commentators and by the National Party that the right to being paid the minimum wage will somehow disadvantage workers.

"This is not the case. I have been given the figures from Work and Income and they show that in each scenario, an employee's total income will increase, not decrease."

Another advantage of the upcoming law change is that individuals employed in sheltered workshops will be assessed to receive the minimum wage based on their capacity to work, not the business where they work. Currently entire workplaces are given permission to pay employees below the minimum wage, no matter how many employees there are or the differing levels of abilities of the employees.

"I am proposing that the law change, once passed, will come into effect on 30 November this year, which will give those workshops which have not completed the individual worker assessments time to do so and obtain minimum wage exemptions from the Department of Labour where necessary."

"Some workshops are already paying the minimum wage of $10.25 per hour. When the Labour-led government increases the minimum wage on 1 April these workers will also continue to benefit and will be able to receive the Invalids Benefit if they are eligible – it will abate but their total pay will still increase, not decrease."

Example: A single person aged 18+ receiving Invalid’s Benefit and the minimum wage per hour as of 1 April at a sheltered workshop (source: Ministry of Social Development)