SCHADS Award Updates: Everything You Need to Know About the Latest Changes

Modern awards are subject to regular reviews to remain relevant and up-to-date. Every four years, experts and other stakeholders are convened to consider any suggested improvements or changes. 

In 2022, the Social, Community, Home Care, and Disability Services (SCHADS) Award underwent a major review. The process allowed those directly affected by the award to have their say on improving it. 

It was also a chance for the award to keep pace with changing circumstances and ensure that it continues to meet the needs of those it covers.

Effective 25 September 2024, the Fair Work Commission made two critical updates to the SCHADS Award:

1. Updated Classification Descriptions

• Levels 1 and 2 classifications for Social and Community Services employees have been revised.
• These now explicitly refer to disability services, ensuring employees are correctly classified and paid.
  
  

2. Award Coverage Extended to Therapeutic Carers

• Employees providing therapeutic care services are now covered by the SCHADS Award.
• This guarantees they receive minimum pay rates and entitlements in line with other SCHADS-covered roles.

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• Part-time employees now have a minimum engagement period:

  • 3 hours for Social and Community Services employees (excluding disability services work).

  • 2 hours for all other employees.

• This applies to broken shifts as well.

Example: Minimum Engagement Period

A part-time home care worker employed by an NDIS provider is rostered to support a client for one hour in the morning and again for one hour in the afternoon.
➡️ Under the updated SCHADS Award, the minimum engagement for home care employees is two hours per shift. Even if the actual work only takes one hour, the worker must be paid for two hours each time they are engaged.

• Employees can now work broken shifts with:

  • Two periods of work (one unpaid break), or

  • Three periods of work by agreement (two unpaid breaks).

• Broken shift allowances apply:

  • $19.39 for one unpaid break

  • $25.67 for two unpaid breaks (2023-24 rates)

Example: Broken Shifts

Susan, a support worker in the social and community services sector, is rostered to work a shift on Wednesday that is broken up as follows:

• 12:30 pm to 4:30 pm
• 7:00 pm to 11:00 pm

This counts as a broken shift with two periods of work and one unpaid break. Under the SCHADS Award, Susan is entitled to a broken shift allowance of $19.39 (2023-24 rate).

If the provider and Susan agree to work a broken shift of three periods, she would be entitled to a higher allowance of $25.67.

• This rule applies to social and community services employees performing disability services work and home care.

⚠️ These allowance amounts are reviewed annually and align with minimum wage adjustments. Check the latest Fair Work wage summaries to apply the correct allowance.

In addition to broken shift allowances, employees may also be entitled to other shift allowances, such as for afternoon, night, or public holiday shifts.

The SCHADS Award updates introduced several changes to allowances to ensure fair reimbursement for employees under specific circumstances:

• Laundering allowance: $0.32 per shift. This applies if an employee's personal clothing (not including uniforms provided by the employer) becomes soiled in the course of their duties. To claim the allowance, employees must:

  • Notify the employer as soon as practicable.

  • Provide evidence if requested.

  • Comply with relevant PPE requirements at the time of soiling.

• Repair allowance: Reimbursement for damaged personal clothing (excluding uniforms) requiring repair or replacement. Eligibility conditions mirror the laundering allowance, and damage must not result from employee negligence.

• On-call allowance: Applies when employees are on standby or required to be available for recall to duty, whether at the employer’s premises, a client’s premises, or remotely. This ensures fair compensation for the inconvenience and responsibility of being on-call.

Employees performing remote work receive minimum payments, depending on the time of day the work is performed:

• 15-minute minimum payment for remote work performed between 6:00 am and 10:00 pm

• 30-minute minimum payment for remote work performed between 10:00 pm and 6:00 am

➡️ Any time worked beyond these minimum periods is rounded to the nearest 15 minutes.
For example, if an employee works 1 hour and 5 minutes, they must be paid for 1 hour and 15 minutes.

If an employee is not on-call and performs remote work, they must be paid at least one hour’s pay, including for remote staff meetings or training sessions.

⚠️ Remote work may attract additional loading if performed:

• Outside of the employee’s ordinary span of hours

• As overtime

• On weekends or public holidays

It’s important to check the SCHADS Award Summary or use automated payroll software (like Pay Cat’s SCHADS-compliant Employment Hero Payroll) to ensure the correct penalty rates are applied.

Employees who perform remote work must maintain a timesheet detailing the hours worked, which must be submitted to their employer.

Consider implementing a mobile time-clocking system to ensure accurate records.

Recalled to Work

If an employee is recalled to work overtime after leaving the workplace, they are entitled to a minimum payment of two hours’ pay.
➡️ Even if the work takes less than two hours to complete, the full two hours must be paid.

Overtime Rate Changes 

All time worked outside the normal span of hours has now also been included in the overtime rates for part-time and casual employees: 

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Client Cancellations and Make-Up Time

If an NDIS client (or any home care or disability service client) cancels or reschedules a service within 7 days of the scheduled shift, the employer must take one of two actions:

1. Redirect the employee to perform other suitable work during the rostered hours.
   • In this case, the employee must still be paid the greater of:
     • What they would have been paid for the cancelled service; or
     • What they earn for the redirected work.
2. Cancel the shift (or part of the shift) entirely.
   • In this scenario, the employee must still be paid what they would have received had the shift not been cancelled.

Alternatively, employers may offer employees make-up time to recoup the lost hours/pay—subject to certain conditions.

Conditions for Make-Up Time:

✅ The employee must be consulted and agree to the arrangement.
✅ The make-up time must be rostered within 6 weeks of the cancelled service.
✅ Employers do not need to reassign the employee to the same client, but the work must be suitable for the employee's skills and capacity.
✅ The employee must be paid the same or more than they would have earned during the cancelled shift.

Example: Client Cancellations

An NDIS client cancels their home care service with less than 7 days’ notice.
➡️ The employer has two options:

1. Redirect the worker to another client or task for the scheduled hours, ensuring they are paid either the same as the cancelled shift or what they earn on the alternative task (whichever is greater).
2. Cancel the shift, but pay the worker for what they would have earned on the cancelled shift.
   Additionally, the employer may offer make-up time, but it must comply with the conditions listed above.

Roster Flexibility & Shift Swaps

Employees may now request roster changes to accommodate a shift swap with another employee.
✅ The swap must be proposed by the employee and agreed to by the employer.
✅ This change provides greater flexibility for workers while maintaining employer oversight to ensure operational requirements are met.

24-Hour Care and Sleepover Shifts for Home Care Employees

Employers may only roster employees for 24-hour care shifts by mutual agreement.

During a 24-hour period:

• The employee must provide active care for no more than 8 hours.
• They are paid 155% of their ordinary hourly rate for the entire 24-hour period.

Overtime for Additional Hours:

If the employee is required to provide more than 8 hours of active care, the additional hours will be considered overtime:

• 150% (time and a half) for the first 2 overtime hours
• 200% (double time) for any hours beyond that
  ⚠️ It must be reasonable for the employee to work more than 8 hours.

Sleep Arrangements:

The employee must be provided with:
✅ A separate room for sleeping
✅ A bed and appropriate facilities
✅ Free board and lodging for each overnight stay
✅ As part of the 2022 Award changes, clean linen must also be provided.

Example: 24-Hour Care Shift

An NDIS home care worker agrees to a 24-hour shift.
➡️ They actively provide care for 8 hours and are paid 155% of their hourly rate for the full 24-hour period.
➡️ If they provide additional care beyond 8 hours, overtime rates apply.

Summary of Key Obligations:

✅ Respond to client cancellations promptly, ensuring staff are compensated correctly
✅ Offer make-up time where appropriate, under the correct conditions
✅ Approve employee-initiated shift swaps where reasonable
✅ Ensure 24-hour care shifts are by agreement and include the correct pay, rest, and facility conditions

For more SCHADS Conditions to be aware of, check out this guide next 👉🏼

6 Conditions Commonly Missed in the Social, Community, Home Care and Disability Services Industry (SCHADS) Award

Employees who perform at least eight 24-hour care shifts during a year are classified as shift workers under the National Employment Standards (NES).

✅ This classification entitles them to an extra week of annual leave, increasing their leave entitlement from 4 weeks to 5 weeks annually.

Example: Extra Annual Leave

An NDIS home care worker completes eight or more 24-hour care shifts over the year.
➡️ They are now entitled to five weeks of annual leave, rather than the standard four.

Why It Matters

✅ Correct leave entitlements protect your business from underpayment claims and demonstrate compliance with the SCHADS Award and NES requirements.
✅ It also ensures your employees receive fair recognition for their work in demanding 24-hour care roles.

⚠️ Quick Reminder:

Be sure to factor in this extra week of leave when calculating employee entitlements in your payroll system—automation can help ensure you stay compliant.

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Here’s where to focus:

✅ Payroll systems—ensure classifications, allowances, and rates are up to date
✅ Employee classifications—particularly Levels 1 and 2, which have recently changed
✅ Processes for managing broken shifts, remote work, overtime, and client cancellations
✅ Staff communication—keep employees informed about changes to rosters, shifts, and pay
✅ Training for HR and payroll teams—to correctly apply the latest SCHADS Award provisions

⚠️ Failing to comply can lead to underpayment claims, Fair Work audits, and reputational damage—especially with increasing scrutiny on wage compliance in the NDIS and care sectors.

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✅ The SCHADS Modern Award has undergone major changes in 2022 and 2024
✅ Employers must review classifications, allowances, broken shift rules, and remote work obligations
✅ Compliance isn’t optional—proactive updates are essential to protect your business
✅ Automating payroll makes it easier to stay up to date and ensure award compliance

Our industry-first SCHADS Award Template is the ONLY 100% compliant cloud payroll solution that guarantees accurate interpretation of the SCHADS Modern Award. This solution has been independently reviewed, giving you complete confidence in your compliance.

Why choose Pay Cat?

✅ SCHADS Modern Award specialists who stay up to date with every change
✅ 100% compliant SCHADS Award Template
✅ Automated award interpretation and updates
✅ Accurate, compliant payslips and audit-ready reporting
✅ Real-time time and attendance tracking
✅ Payroll processing in under an hour
✅ Minimise compliance risks and eliminate manual errors

📄 Download our independently reviewed report to learn why Pay Cat’s SCHADS payroll solution is the only one of its kind.

Book a demo to see how Pay Cat can help you simplify compliance, save time, and ensure your payroll is always 100% SCHADS-compliant.

Understanding the SCHADS Award can be complex, but having the right tools makes compliance easier. We’ve compiled key resources to help you stay on top of your payroll, rostering, and compliance obligations.

🔗 Download the SCHADS Award eBook + Pay Rate Cheat Sheet – Everything you need to know about SCHADS, including wage classifications, pay points, and allowances.

🎥 Watch Our Free SCHADS Webinars

Common Shift Calculations Explained

Designing a SCHADS Time and Attendance Workflow

ShiftCare and Pay Cat Integration: Guarantee Payroll compliance with SCHADS, Awards and Enterprise Agreements

👩🏼‍💻 Watch the first part of our SCHADS course for free!
Mastering the SCHADS Award

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.