The SCHADS Award (MA000100): Key Updates, Compliance, and What Employers Need to Know [2026 Updated]

The Social, Community, Home Care, and Disability Services Industry (SCHADS) Award is one of the most complex Modern Awards in Australia. Covering key industries such as disability services, aged care, home care, and community services, it outlines minimum wages, working conditions, and entitlements for thousands of employees.

With frequent updates and strict compliance requirements, SCHADS employers—big and small—face significant challenges in staying compliant. Even major providers like Kreating Real Change Disability Services, Aruma Services Limited, and Australian Unity have faced penalties for non-compliance.

In this guide, we’ll break down everything you need to know about the SCHADS Award, including:

✅ Who is covered & pay classifications
✅ Ordinary hours, allowances & penalties
✅ Recent changes (2022-2025) & what they mean for your business
✅ Key compliance challenges & best practices

For a deeper dive into SCHADS compliance, download our free SCHADS Award eBook & Pay Rate Cheat Sheet to ensure you meet all payroll obligations with confidence.

Disclaimer:
Please note that every effort has been made to ensure that the information provided in this guide is accurate. You should note, however, that the information is intended as a guide only, providing an overview of general information available. This guide is not intended to be an exhaustive source of information and should not be seen to constitute legal or tax advice. You should, where necessary, seek a second professional opinion for any legal or tax issues raised in your business affairs.

The Social, Community, Home Care & Disability Services Industry (SCHADS) Award sets the minimum employment standards for workers in the disability, aged care, community services, and home care sectors. It covers everything from pay rates and classifications to shift allowances, overtime, and leave entitlements.

The SCHADS Award applies to:

✔ Crisis assistance & supported housing (e.g., emergency shelters, crisis accommodation)
✔ Social & community services (e.g., disability support, youth work, advocacy)
✔ Home care (e.g., aged care, in-home disability support)
✔ Family day care schemes (e.g., home-based childcare providers)

Who is NOT Covered by SCHADS?

Certain employees in the care sector are covered by different Modern Awards, including:

❌ Aged Care Award – Covers aged care facilities (excluding home care).
❌ Health Professionals & Support Services Award – Applies to medical and allied health professionals.
❌ Nurses Award – Covers registered nurses and midwives.
❌ Fitness Industry Award – Covers personal trainers and fitness professionals.

Why the SCHADS Award is Important

The SCHADS Award ensures that employees in these essential sectors receive fair pay, reasonable working conditions, and legal protections. Given the industry’s high reliance on casual and part-time work, penalty rates, and shift allowances, businesses must stay compliant to avoid underpayments and legal risks.

⚠️ Failure to comply can lead to hefty fines and back-pay liabilities—impacting your business reputation and financial stability.

The SCHADS Award (MA000100) groups employees into five classification streams: Social and Community Services, Crisis Accommodation, Family Day Care, Home Care – Disability Care, and Home Care – Aged Care, each with its own pay levels, and three employment types: full-time (38 ordinary hours a week), part-time (a written hours agreement), and casual (25% loading, no guaranteed hours).

SCHADS Award Pay Classifications & Employment Types

The SCHADS Award classifies employees into different levels and employment types, each with specific pay rates, entitlements, and conditions. Understanding these classifications is essential for ensuring correct payroll processing and compliance.

You can watch the first part of our SCHADS course for free. 

SCHADS Award Classification Levels & Pay Progression

Employees under SCHADS are classified into four main streams:

Each classification has multiple pay levels, with employees progressing based on experience, qualifications, and time served.

🔗 Check out our guide to SCHADS Award Pay Rates and Progressions

Types of Employment Under the SCHADS Award

The SCHADS Award recognises three main employment types:

1. Full-Time Employment

✔ Guaranteed 38 ordinary hours per week or an average of 38 hours over 4 weeks.
✔ Entitled to annual leave, personal/carer’s leave, and redundancy pay.

2. Part-Time Employment

✔ Works fewer than 38 ordinary hours per week on a regular basis.
✔ Requires a written agreement outlining a regular pattern of work.
✔ Minimum engagement period per shift:

• Social & Community Services Employees (excluding disability support workers): 3 hours
• Home Care Employees: 2 hours
• All other employees: 2 hours
  ✔ Employees working beyond their guaranteed hours for 12+ months can request an increase in contracted hours.
  
  

3. Casual Employment

✔ No guaranteed hours—works on an irregular or on-demand basis.
✔ Paid 25% loading on top of hourly rates (to compensate for lack of leave entitlements).
✔ Minimum engagement period per shift:

• Social & Community Services Employees (excluding disability support workers): 3 hours
• Home Care Employees: 1 hour
• All other employees: 2 hours
  

📌 Casual Conversion Rights:

Casual employees who have worked regular, predictable hours for 12+ months can request to convert to permanent part-time or full-time employment unless there are valid business reasons to refuse.

Why These Classifications Matter

✅ Incorrect classifications can lead to payroll errors, underpayment claims, and legal penalties.
✅ Businesses must regularly review employee classifications to ensure compliance.
✅ Employers should provide written agreements for part-time and full-time employees to avoid disputes.

📥 Download the SCHADS Pay Rate Cheat Sheet for a full breakdown of classification levels and pay scales.

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SCHADS Award Pay Classifications & Pay Progression

Employees under the SCHADS Award are classified into four main streams, each with multiple pay levels and progression points:

Pay progression: Employees move to a higher pay point after 12 months of continuous service, provided they meet performance & competency requirements.

🔗 Download the SCHADS Pay Rate Cheat Sheet for a full breakdown of current pay rates.

SCHADS Award Pay Rates 

Pay rates are updated annually in July to reflect minimum wage increases. The Fair Work Ombudsman’s pay guide provides the most up-to-date figures.

Major changes are underway to this structure.

Following the Fair Work Commission's gender-based undervaluation review (Expert Panel decision [2026] FWCFB 137, matter AM2024/21, 1 June 2026), a Final Classification Structure will replace Schedules B, C, E and F from 1 October 2027, and no employee's minimum rate will fall as a result of the move. A further, separate change proposed for Home Care – Disability Care employees (Schedule E), an interim pay increase from the first full pay period on or after 1 October 2026, was still moving through draft determinations as of late July 2026, so treat the exact rates as proposed rather than settled until the Commission issues its final determination.

This is separate from the regular annual wage review, so don't apply one increase where the other belongs. Read our full cost-planning breakdown, checked against the latest determination before you rely on it: The Schedule E Pay Increase is Coming.

SCHADS Award Penalty Rates

Employees working outside standard hours, weekends, or public holidays are entitled to penalty rates on top of their base pay.

SCHADS Award Overtime Rates

Overtime applies when employees exceed their ordinary hours or work outside the agreed span of hours.

Time Off Instead of Overtime Payment: Employees and employers may agree to time off in lieu (TOIL) instead of overtime pay, with specific conditions.

🔗 Read our Guide to Time off in Lieu for Australian Employers and Employees

SCHADS Award Allowances

Certain roles under the SCHADS Award qualify for additional allowances to compensate for work conditions.

You can watch the first part of our SCHADS course for free. 

💽 Search our database for all relevant allowances to the various modern awards.

🔗 Check the latest SCHADS Award Allowance Rates from the Fair Work Ombudsman.

Why SCHADS Pay Compliance is Critical

✔ Incorrect pay rates lead to costly back-pay claims & fines.
✔ Employers must adjust pay rates annually in line with the Fair Work Commission’s rulings.
✔ Payroll automation can prevent underpayments & ensure compliance.

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Ordinary Hours of Work

Ordinary hours under the SCHADS Award are 38 hours per week, worked within one of the following arrangements:

✔ Maximum shift length: 10 hours per shift if agreed in writing.
✔ Minimum shift engagement periods:

• Social & Community Services Employees (excluding disability support workers) – 3 hours
• Home Care Employees – 2 hours
• All other employees – 2 hours

Roster Requirements Under SCHADS

Employers must publish rosters at least two weeks in advance, and any changes require 7 days’ notice unless agreed otherwise.

Roster Change Rules:
✔️ Employer-Initiated Changes: 7 days' notice required unless in emergencies.

 ✔️ Client Cancellations:

• If a client cancels or reschedules a home care or disability support service within 7 days, the employer must either:
  • Redirect the employee to alternative work during the scheduled hours.
  • Cancel the shift and still pay the employee.
  • Offer make-up time within the next fortnight.

• Employees may request shift swaps with employer approval.

Broken Shifts

A broken shift occurs when an employee’s shift is split into two or more work periods within a single day, separated by unpaid breaks.

✔ Maximum shift duration (including breaks): 12 hours
✔ Minimum rest period between broken shifts: 10 consecutive hours

Allowances:

• 2-period broken shift: 1.7% of the standard rate
• 3-period broken shift: 2.25% of the standard rate

❗Employers must obtain employee consent to roster them for three periods of work in a day.

Sleepover Shifts

Employees required to stay overnight at a client's home must be provided with a separate room with a bed and clean linen, plus access to food preparation and staff facilities where possible; board and lodging for the night are free. A sleepover shift is built around a minimum 8-hour continuous rest period.

Allowances: a sleepover allowance of 4.9% of the standard rate (Social and Community Services Employee, Level 3, Pay Point 3); check the current FWO pay guide for the dollar figure since it moves with annual award increases. If an employee is called to work during the sleepover, they're paid a minimum of 1 hour at overtime rates regardless of how long they actually worked. If an employee works immediately before or after the sleepover, they must be engaged for a minimum of 4 hours for that work period.

Updated from 1 June 2026 (an employee's first full pay period on or after that date): a sleepover no longer counts as a rest break between shifts, so work immediately either side of it is treated as part of the same shift rather than breaching the 10-hour break rule. The shift allowance for each side is worked out separately by time of day rather than as one loading across the whole span, for example a portion finishing between 8pm and midnight attracts the afternoon shift allowance, while a portion starting at 6am or later attracts none. By written agreement, ordinary hours across both sides of a sleepover can now extend to 12 hours total (max 8 on either side), up from the 10-hour agreed maximum that otherwise applies. Overtime differs by employment type: full-time employees get overtime for anything beyond their rostered ordinary hours on the shift, while part-time and casual employees get overtime after 12 hours if they've agreed to the extended shift, or after 10 hours if they haven't.

These changes followed the Federal Court's decision in Jats Joint Pty Ltd v Fair Work Ombudsman [2025] FCA 743, which found sleepovers are separate from the surrounding shift and don't automatically attract night shift penalties, overturning the Fair Work Ombudsman's earlier position. Source: Fair Work Ombudsman, Changes to sleepovers in the SCHADS Award.

24-Hour Care Shifts

A 24-hour care shift requires an employee to be available at a client’s home for a full day.

Pay Conditions:

• Employees must be allowed to sleep during the shift.
• The shift is paid at 155% of the standard rate for the full 24 hours.
• If an employee works more than 8 hours, the extra time is paid as overtime (150% for the first 2 hours, 200% thereafter).
• Employees can refuse to work beyond 8 hours if deemed unreasonable.

Excursions (Overnight Client Activities)

If an employee accompanies a client on an overnight excursion, the following rules apply:

Monday–Friday excursions:

• Paid for up to 10 hours per day (8 AM–6 PM).
• Sleepover allowance applies.

Weekend excursions:

• Employees cannot work more than 10 days in a two-week cycle.
• Overtime and penalty rates apply.

Rest Breaks Between Shifts

✔ If an employee does not receive the required rest break, they must be paid overtime (200%) until they receive the break.

Key Compliance Takeaways

• Employers must track and manage rosters, shifts, and allowances carefully to avoid underpayment risks.
• Client cancellations within 7 days require employee compensation.
• Broken shifts, sleepovers, and 24-hour shifts come with strict conditions and penalty rates.
• Failing to provide rest breaks results in overtime penalties.

Unpaid Meal Breaks

✔ Employees must take a 30 to 60-minute unpaid meal break if they work more than five hours.
✔ If an employee works through their meal break, they must be paid overtime rates until they receive their break.
✔ If an employee has a meal with a client as part of their duties, they will be paid their normal rate, and the time will count as paid work.

Paid Rest Breaks (Tea Breaks)

✔ Employees are entitled to a 10-minute paid tea break for every 4 hours worked.
✔ These breaks must be counted as time worked.

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Remote Work Under the SCHADS Award

As of July 1, 2022, new SCHADS Award provisions govern remote work performed outside normal hours. Employers must compensate employees fairly when requiring them to work remotely.

Remote Work Payment Rules:
✔ Employees performing additional hours remotely must receive minimum payments based on time worked.
✔ Minimum payments apply instead of standard penalties & overtime rates.

✅ If an employee is not on call, they must be paid a minimum of 1 hour.
✅ Meetings & training outside normal hours also require at least 1 hour of pay.
✅ Employees must record all remote work in timesheets for compliance.

Superannuation

From 1 July 2025, the Superannuation Guarantee (SG) rate increased to 12% of an employee's ordinary time earnings, and it stays at 12% for 2026-27. This rate applies to all salary and wages paid on or after 1 July 2025, even if some or all of the pay period occurred before that date.

Before 1 July 2022, you only needed to pay super guarantee if you paid your worker $450 or more (before tax) in a month. As of 1 July 2022, employers are required to pay super guarantee for all eligible employees, regardless of how much they are paid.

Payday Super

From 1 July 2026, Payday Super changed how and when super is paid. Instead of paying quarterly, employers must pay super guarantee at the same time as wages, for every payday. The contribution needs to reach the employee's super fund within 7 business days of payday (this is not same-day super, just a tighter deadline), and it's calculated on the employee's qualifying earnings rather than only ordinary time earnings. Missing the 7-day window can trigger the new super guarantee charge, including an added administrative uplift penalty on top of the shortfall.

WEBINAR ON-DEMAND

Pay Day Super is Here - Is Your Payroll Ready? Pay Cat Head Trainer, Tasya walks through exactly what's changed, what it means for your payroll, and how to get set up with the right clearing house solution. 

Leave Entitlements Under the SCHADS Award

The SCHADS Award follows the National Employment Standards (NES) for leave entitlements, including annual leave and public holiday pay rates.

Annual Leave

✔ Full-time and part-time employees are entitled to 4 weeks of paid annual leave per year.
✔ Shift workers (who are regularly rostered on Sundays & public holidays) receive 5 weeks of annual leave per year.

📌 Annual Leave Loading
Employees must be paid the higher of:
✅ 17.5% leave loading on their ordinary pay rate, OR
✅ The penalty rates they would have received if they had worked during that period.

📌 Example Calculation
If an employee takes leave from Thursday to Wednesday and normally works 8 hours on Saturdays, their employer must compare:
1. Their 38-hour pay with a 17.5% leave loading, vs.
2. Their regular pay, including Saturday penalty rates.
Whichever is higher must be paid.

Public Holidays

✔ All public holiday entitlements follow the National Employment Standards (NES).
✔ Public holiday work must be paid at 250% of the ordinary pay rate.
✔ Casual employees receive 275% (which includes casual loading).

Note: Shiftworkers are entitled to 5 weeks of paid annual leave if they are available seven days a week and regularly rostered to work on Sundays and public holidays. 

As part of the 2022 review, employees who perform at least eight 24-hour care shifts during the year will now be considered shift workers for the NES and are entitled to one additional week of annual leave.

Notice Periods for Termination

The required notice period depends on the employee's length of continuous service.

✔ Notice must be provided in writing.
✔ If an employer fails to provide notice, they must pay the employee in lieu of notice (i.e., pay them for the notice period they would have worked).

Redundancy Pay Entitlements

If an employee is made redundant, they must receive a redundancy payment based on their years of service.

Exemptions from Redundancy Pay

🚫 Small businesses (fewer than 15 employees) are NOT required to provide redundancy pay.
🚫 Employees terminated due to serious misconduct are not entitled to redundancy payments.
🚫 Redundancy pay does NOT apply to casual employees or employees on fixed-term contracts that end naturally.

🔗 Check out our guide to Redundancy Payments in Australia

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Common SCHADS Award Compliance Challenges

1. Misclassifying Employees & Incorrect Pay Rates

Issue: Employers often misclassify workers (e.g., casual vs. part-time) or use incorrect pay levels, leading to underpayment risks.

✅ Solution:

✔ Regularly review employee classifications and ensure pay rates align with the latest SCHADS Award pay guide.

2. Inaccurate Rosters & Shift Break Violations

Issue: Failing to give proper notice for roster changes, not complying with minimum shift engagements, and violating break requirements.

✅ Solution:
✔ Publish rosters at least 2 weeks in advance.
✔ Ensure employees get required rest periods (e.g., 10-hour break between shifts).
✔ Use automated scheduling tools to track shifts & changes.

3. Underpaying Penalty Rates & Allowances

Issue: Some employers miscalculate overtime, weekend penalties, sleepover allowances, and broken shift payments.

✅ Solution:
✔ Use payroll software with built-in SCHADS interpretation to calculate penalties accurately.
✔ Regularly check for Fair Work updates on allowance rates.

4. Failing to Compensate for Client Cancellations

Issue: If a home care or disability support client cancels within 7 days, employers must either reallocate work or still pay employees.

✅ Solution: Ensure client cancellation policies align with SCHADS rules, and track canceled shifts in payroll systems.

5. Poor Record-Keeping & Non-Compliance Risks

Issue: Businesses failing to keep accurate timesheets, payroll records, and shift logs are at risk of Fair Work audits & fines.

✅ Solution:
✔ Maintain detailed digital records for all payroll transactions.
✔ Keep timesheets, rosters, and pay records for at least 7 years.

SCHADS Award Resources & Further Support

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

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The SCHADS Award (MA000100) is complex and filled with pitfalls. Businesses that don't have specialised payroll team members or fail to understand their employer obligations often are exposed to severe penalties due to underpayments, and what's constituted as wage theft.

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