Simplify Complex Shifts By Automating Broken and Sleepover Payroll

Managing payroll for complex shift types like broken shifts and sleepover shifts in the Social and Community Services (SCHADS) award is enough of a challenge for employers without having to juggle potential human error that can pop up along the way. Even established payroll systems can get it wrong from time to time, especially if the system itself isn’t well-equipped with automation processes to prevent these pitfalls. 

Getting it right is obviously crucial—not only for staying compliant with the award, but also for keeping your valued employees happy.

As a payroll specialist focused on payroll compliance, Pay Cat is here to help. Many payroll systems struggle with the intricacies of these shift types and can easily make costly errors. But Pay Cat has developed a precise and user-friendly way to record broken and sleepover shifts, letting the power of automation handle the complexity, while you focus on running your business.

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• The shift is no more than 12 hours long in total
• There is a minimum 10-hour break between broken shifts worked on consecutive days
• It applies to Social and Community Services employees working in disability services and home care

There are two types of permitted broken shifts:

1. Two periods of work with one unpaid break in between
2. Three periods of work with two unpaid breaks (this requires an agreement between the employer and employee).

Broken shift allowances apply as follows:

A higher allowance of 4% applies if the broken shift finishes later than 6pm, or the break within a broken shift exceeds 2.5 hours.

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The inactive hours are the actual sleepover portion where the employee can sleep, and must be recorded as a separate time sheet entry.

Active hours worked before and after the sleepover portion are paid at the applicable rate - either the night shift rate (for hours between midnight and 6am) or the overtime rate (typically 150%-200% of the regular rate, depending on the day).

Importantly, if any work is performed during the sleepover period, a minimum one-hour payment at the applicable overtime rate applies - even if the work performed was less than 1 hour. Pay Cat's automation ensures that the various penalty rates for afternoon shifts, night shifts, weekend shifts, and public holidays are automatically applied.

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• Applying a lower broken shift allowance instead of the higher rate when applicable
• Not separating active vs inactive hours in sleepover shifts, or miscalculating payment for active hours
• Underpaying overtime (e.g. regular rate vs overtime rate)
• Not paying the minimum 1 hour at the overtime rate for work performed during a sleepover
• Mixing up the casual and permanent differential rates
• Not guaranteeing 10 hours between broken shifts or overall compliance with the SCHADS award

These errors can be costly, leading to unhappy workers and potential underpayment claims, fines, and reputational damage. This is where automation becomes a payroll manager's best friend. 

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1. It drastically reduces the risk of human error and ensures compliance with the intricate rules of the SCHADS award
2. It saves you significant time - no more manual calculations or second-guessing
3. It gives you peace of mind that your employees are being paid accurately, keeping them satisfied
4. It frees you up to focus on more strategic aspects of your role.

Pay Cat has built these automations in a precise yet easy-to-use way. For broken shifts, simply enter the shift with the breaks in between. Pay Cat will:

• Apply the correct allowance based on the number of work periods (1.7%, 2.5%, 4%, etc)
• Automatically apply overtime rates if the total shift exceeds 12 hours
• Force a minimum 10 hour break between shifts on consecutive days

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And for sleepover shifts, just record the sleepover portion separately, and Pay Cat will:

• Automatically differentiate the active vs inactive hours
• Apply the night shift rate for hours between midnight and 6am
• Pay the 1 hour minimum at overtime rates for any work performed during the inactive period
• Apply Saturday, Sunday and public holiday penalty rates as applicable

Plus, Pay Cat integrates seamlessly with popular systems like Employment Hero and ShiftCare, giving you a best-in-class cloud payroll solution. Our team is here to support you with implementation, training, and ongoing support.

• Automating payroll for broken and sleepover shifts prevents costly errors and ensures compliance.
• Pay Cat handles complex shift calculations, freeing payroll managers for strategic tasks.
• Common payroll errors include incorrect allowances, not separating active/inactive hours, underpaying overtime, and not paying the minimum overtime for sleepover work.
• Pay Cat automates allowances, overtime for shifts over 12 hours, and enforces 10-hour breaks between consecutive day shifts.
• For sleepovers, Pay Cat automates active/inactive hours, night shift rates, overtime for work during inactive periods, and weekend/holiday penalty rates.

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Who is Pay Cat?

Pay Cat are payroll specialists dedicated to helping Australian businesses simplify payroll and ensure 100% compliance with modern awards. As Employment Hero Payroll experts, we provide tailored solutions that streamline payroll processes, reduce errors, and save time. For SCHADS businesses, our industry-first, 100% compliant SCHADS interpreter template guarantees accurate award interpretation and automation.