A group representing aged care providers says it has taken over litigation for a Lower Hutt rest home in a landmark pay case.
The case centres on the claims of caregiver Kristine Bartlett that low pay of women in aged care is gender discrimination.
The Employment Court issued a preliminary finding in favour of the claim and the case now awaits a Court of Appeal hearing in February 2014.
The Aged Care Association said it has signed an agreement with Terranova and will now direct legal action from the rest home's perspective.
It said the case is not about Terranova, but about under-funding of the aged care sector, with potentially far-reaching implications.
The association said it has advocated pay parity with public sector caregivers since 2005 and its role does not indicate a change to that stance.
However, it said no aged care provider can afford wages higher than the current level without more government funding.