Guidelines for sheltered employment

Sheltered employment, for Supported Living Payment eligibility purposes is employment that has been designed to cater for the needs of a person who is severely disabled.

To determine if a client is working in sheltered employment, you will need to talk with your client and their employer. Your employment co-ordinator may be the most appropriate person to talk to the employer.

You must decide whether the client has employment conditions that have been substantially changed to accommodate their disability. Examples of employment conditions may include:

• their job content
• performance expectations or requirements
• environmental changes

The following is a list of questions you could ask your client or their employer to help you decide if your client is working in sheltered employment.

Note you may need to ask your client or their employer more questions to get all the relevant information.

• Does your client need flexibility in working hours because of their impairment or illness? Is this flexibility over and above what the employer would provide for staff without disabilities?
• Has the employer allowed the client flexibility in the time taken to complete tasks because of their impairment or illness? Is this flexibility different compared to time taken for staff without disabilities to complete tasks?
• Has your client's job been customised to be within their capability (for example, does the client complete a narrower range of tasks than their co-workers, or has their job been created from selected tasks usually done by co-workers)?
• Does your client need changes to their work conditions (for example, a place to rest when required)?
• Does your client need additional support on an ongoing basis (for example, support from an employment support group over and above what is provided for staff without disabilities, such as regular supervision, job mentoring or coaching)?
• Has your client been granted a minimum wage exemption by a labour inspector?

If the client answers 'yes' to one of more of the questions outlined above, your client may be in sheltered employment. You need to decide whether the changes in the client's employment conditions are significant enough to establish that the client's employment is sheltered.

Note a one-off environmental change is not sheltered employment. For more information see:

• One-off environmental change is not sheltered employment

All decisions require comment from your Regional Disability Advisor or Regional Health Advisor.

For more information see:

• Process for decisions

The Ministry of Social Development contracts with community-based organisations to provide vocational services for people with disabilities. Clients who are employed in a contracted business enterprise (formerly known as approved sheltered workshops) are considered to be working in sheltered employment for Supported Living Payment purposes.

For a list of the contracted vocational services providing employment opportunities in business enterprises see:

• Deskfile Approved Business Enterprises

If your client is severely disabled and earning income from employment, whether it is sheltered or open employment, they are entitled to the personal earnings exemption.

For more information see:

• Personal earnings exemptions
• Exemption for severe disablement