SCHADS Award Q&A: Common Payroll Scenarios Explained

Managing SCHADS payroll often comes down to how specific scenarios are interpreted. Sleepovers, broken shifts, on-call work, and allowances can all impact how pay is calculated.

In this Q&A session, Tasya O’Connell, Head Trainer at Pay Cat, worked through real questions from NDIS providers and payroll teams. This article summarises the key scenarios and how they should be handled in practice.

You can see more webinars on-demand here. 

“Where work is performed during a sleepover and paid at overtime rates, is the meal allowance required to be paid?”

Work performed during a sleepover

When an employee performs work during a sleepover, that time is paid at overtime rates.

However, this does not mean it is classified as overtime.

This distinction matters.

• The SCHADS Award specifies that sleepover work is paid at overtime rates
• It is not treated as overtime hours worked
• Because of this, overtime-based entitlements like meal allowances do not automatically apply

In practice, this means:

• A worker who wakes during a sleepover is paid at 1.5x
• This is recorded as “work during sleepover”
• It does not trigger overtime meal allowances

This is a common point of confusion, particularly when reviewing pay categories.

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“What changes to sleepovers have been made since the Jats Joint case?”

The interpretation of sleepovers has shifted following the Jats Joint decision.

Previously:

• Sleepover shifts were treated as one continuous shift
• Penalties could apply across the full span of the shift

Now:

• Sleepovers are treated as separate periods
• Pre-sleep, sleepover, and post-sleep work are distinct
• Each segment is paid based on its own conditions

For example:

• 6pm to 10pm → afternoon shift penalties
• 10pm to 6am → sleepover allowance
• 6am to 10am → ordinary hours

It is important to note that Fair Work guidance is still being updated. Changes should be applied carefully while interpretations are still being formalised.

“If someone works 8am–10am, then 12:30pm–2:30pm, then 6pm–8pm, do they get paid a broken shift allowance?”

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A common scenario involves a sleepover followed by another shift later in the day.

Example:

• Sleepover: 10pm to 6am
• Morning shift: 6am to 10am
• Afternoon shift: 3:30pm to 8pm

This is often assumed to be a broken shift.

In reality, it triggers insufficient break between shifts.

Key rule:

• Employees must have a minimum break between shifts
• If this is not met, higher penalties apply

Outcome:

• The shifts are treated separately
• Instead of a broken shift allowance, double time may apply

You cannot apply both rules at once. One overrides the other depending on the scenario.

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“How should pay be treated when an employee is rostered on call and responds to work following a phone call, particularly where they have to leave home and drive?”

On-call work

If an employee is on call and responds remotely:

• Paid in minimum increments (typically 15 minutes)
• Paid at ordinary time

Example:

• 5-minute phone call → paid as 15 minutes

Recall to work

If the employee must leave home:

• This becomes a recall to work
• Paid as overtime
• Minimum of 2 hours at overtime rates

Example:

• Driving to collect medication → recall to work
• Even short tasks trigger the minimum payment

This distinction is critical for compliance.

→Download a copy of the fully updated (2025) SCHADS Modern Award Ebook 

“If a staff member is rostered for a three-hour meeting but leaves early and only works two hours, should they submit leave for the one-hour shortfall?”

If an employee is rostered for a minimum shift (e.g. 3 hours) but leaves early:

• If the employer shortens the shift → minimum engagement applies
• If the employee chooses to leave → minimum does not apply

In this case:

• Pay for hours worked
• Remaining time can be covered by leave (annual, personal, or unpaid)

Some businesses choose to pay the full minimum anyway for consistency, but it is not required.

“Why are public holiday rates sometimes incorrect for certain locations, even though the pay rate templates are set up correctly?”

If a shift is cancelled on a public holiday and replaced:

• The original shift (public holiday rate), or
• The replacement shift

In most cases:

• Public holiday rates will still apply

However:

• If the employee does not work at all on the public holiday, they are paid ordinary hours (for permanent staff)

→ Get the Cheatsheet guide to all state and territories public holidays for 2025 - 2026.

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“What allowances does superannuation apply to, particularly sleepover allowance, broken shift allowance, and others?”

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Superannuation is based on ordinary time earnings (OTE).

Included in super:

• Sleepover allowance
• Broken shift allowance

Not included:

• Overtime
• Overtime-based allowances
• Unit-based allowances (e.g. laundry, meal allowance)

Key rule:

• If it is not ordinary time earnings, super does not apply

“When a part-time employee has a shift on a public holiday that is cancelled and replaced with another shift, should the replacement shift still be paid at public holiday rates?”

Yes, the replacement shift should be paid at the public holiday rate.

If a service is cancelled and makeup time is provided, the employee must be paid the higher of:

• what they would have been paid for the original shift, or
• what they are paid for the replacement shift

In this case, because the original shift was on a public holiday, the public holiday rate is higher, so that is what should be paid.

You do not also need to pay public holiday not worked. For permanent or part-time employees, if they do not work on a public holiday, they are paid their ordinary hours. But in this scenario, because they are working a replacement shift, you are comparing the two and paying the higher amount.

“If someone works 8am–10am, then 12:30pm–2:30pm, then 6pm–8pm, do they get paid a broken shift allowance?”

When a shift has three parts in a day:

• Only one broken shift allowance applies
• A higher allowance is used instead of multiple payments

If the span of the shift exceeds 12 hours:

• Additional penalties apply
• Time beyond 12 hours is paid at higher rates

This is based on the total span, not total hours worked.

“A permanent part-time employee is contracted for 32 hours, works 29.5 hours, and then calls in sick for an 8-hour shift. Should they take leave for the full 8 hours or only the remaining 2.5 hours?”

For part-time employees:

• Leave is based on their rostered hours, not total hours worked

Example:

• Contracted: 32 hours
• Worked: 29.5 hours
• Sick for an 8-hour shift

Outcome:

• The full 8 hours of leave is paid

Even if total hours do not exceed contracted hours, the rostered shift determines the entitlement.

“How do you work out payments for two or more support workers on the same shift with the same participant?”

If two employees are working with the same participant, they each submit their own timesheets for the hours they worked.

Those timesheets can overlap. For example, one employee might work 9 to 5 with a client, and another employee can also submit hours for that same client at the same time.

Each employee is simply paid based on the hours they worked and what they are entitled to under the award. There are no issues with overlapping timesheets for the same participant.

“Why do some pay rates show more than two decimal places, and how can this be adjusted?”

This comes down to how the pay categories are set up in the system.

All of the different line items, such as ordinary hours, overtime, and penalty rates, are configured under pay categories. Many of these are linked back to the base rate.

Within each pay category, there is a setting for rate precision. This controls how many decimal places are shown.

If rates are displayed with more than two decimal places, you can go into payroll settings, open the relevant pay category, and change the rate precision setting to two decimal places.

“If they take a five minute phone call, but it takes them 45 minutes to action the phone call, how is that paid?”

This is still considered remote work.

The employee should record the full amount of time spent actioning the task, so in this case, the full 45 minutes would be paid.

If they are still at home or wherever they are completing the work, it remains classified as remote work. If they were required to leave to carry out the task, it would instead be treated as recall to work.

“If a worker does not take a meal break and works over five hours, are they paid overtime rates?”

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Yes, if the employee does not take a meal break, they are paid overtime rates after the five-hour mark.

However, this depends on whether they actually missed the break.

If the employee eats with the client, the system assumes they have taken their break, and they are paid ordinary hours for the full shift.

If they did not take a break at all, you would record this using a “no meal break” work type. The system will then calculate overtime rates for the time worked beyond five hours.

Who is Pay Cat?

Simplify Payroll. Stay Compliant.

Pay Cat is Australia’s only 100% compliant SCHADS payroll solution, built specifically for NDIS providers and businesses operating under the SCHADS Award. Backed by a team of SCHADS experts, Pay Cat ensures your payroll is set up correctly from the start, with automated award interpretation and ongoing support to help you stay compliant every pay run.