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)
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.
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.
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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.
Employees under SCHADS are classified into four main streams:
| Classification | Description |
|---|---|
| Social & Community Services Employees | Includes disability care, social work, youth work, personal care, and advocacy roles. |
| Crisis Accommodation Employees | Workers providing emergency housing and crisis support. |
| Family Day Care Employees | Individuals providing home-based childcare. |
| Home Care Employees | Employees offering personal care, domestic assistance, and home maintenance for older or disabled clients. |
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
The SCHADS Award recognises three main employment types:
✔ 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.
✔ 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:
✔ 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:
📌 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.
✅ 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.
The SCHADS Award pay structure is based on classification levels, pay points, and penalties. Employers must ensure they are paying the correct rates to avoid legal penalties and back-pay liabilities.
Employees under the SCHADS Award are classified into four main streams, each with multiple pay levels and progression points:
| Classification | Levels & Pay Progression |
|---|---|
| Social & Community Services Employees | 8 levels (Level 1–8), each with multiple pay points. Employees progress based on experience & qualifications. |
| Crisis Accommodation Employees | 5 levels (Level 1–5), with pay progression based on tenure & skills. |
| Family Day Care Employees | 5 levels (Level 1–5), with general pay progression rules applying. |
| Home Care Employees | 5 levels (Level 1–5), with pay progression based on time served & performance. |
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.
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.
Employees working outside standard hours, weekends, or public holidays are entitled to penalty rates on top of their base pay.
| Shift Type | Penalty Rate (% of minimum hourly rate) |
|---|---|
| Afternoon Shift (ends between 8 PM – midnight, Mon–Fri) | 112.5% |
| Night Shift (finishes after midnight or starts before 6 AM, Mon–Fri) | 115% |
| Saturday Work | 150% |
| Sunday Work | 200% |
| Public Holiday Work | 250% |
| Casual Employees on Public Holidays | 275% (including casual loading) |
Overtime applies when employees exceed their ordinary hours or work outside the agreed span of hours.
| Employment Type | Overtime Rate (Mon–Sat) | Sunday | Public Holiday |
|---|---|---|---|
| Full-time & Part-time Employees | First 2 hours: 150% Thereafter: 200% |
200% | 250% |
| Casual Employees | Same as above + 25% casual loading | Same as above + 25% casual loading | Same as above + 25% casual loading |
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
Certain roles under the SCHADS Award qualify for additional allowances to compensate for work conditions.
| Allowance Type | Description |
|---|---|
| Broken Shift Allowance | Extra payment for employees working split shifts (e.g., home care & disability services). |
| Sleepover Allowance | Paid when an employee is required to stay overnight at a client’s home. |
| On-Call Allowance | For employees required to be available outside their normal hours. |
| Laundry & Uniform Allowance | Compensation if the employer does not provide/launder uniforms. |
| Meal Allowance | For employees required to work overtime without prior notice. |
| First Aid Allowance | Paid to employees designated to perform first aid duties. |
| Heat Allowance 40-46C and Heat Allowance 46C+ |
For employees working in high-temperature conditions above 40°C. |
| Travel/Transport/Vehicle Allowance | For employees using their personal vehicle for work-related travel. |
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.
✔ 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.
The SCHADS Award sets strict rules on ordinary working hours, roster management, and shift conditions. Employers must comply with these regulations to avoid penalties and ensure fair working conditions.
Ordinary hours under the SCHADS Award are 38 hours per week, worked within one of the following arrangements:
| Work Arrangement | Maximum Ordinary Hours Per Shift | Total Hours |
|---|---|---|
| 5-day workweek | 8 hours per shift | 38 hours per week |
| Fortnightly cycle | 10 shifts of 8 hours | 76 hours per fortnight |
| 4-week cycle | 19 shifts of 8 hours | 152 hours per 4 weeks |
✔ Maximum shift length: 10 hours per shift if agreed in writing.
✔ Minimum shift engagement periods:
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:
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:
❗Employers must obtain employee consent to roster them for three periods of work in a day.
Employees required to stay overnight at a client’s home must be provided with:
A 24-hour care shift requires an employee to be available at a client’s home for a full day.
Pay Conditions:
If an employee accompanies a client on an overnight excursion, the following rules apply:
Monday–Friday excursions:
Weekend excursions:
| Condition | Minimum Rest Period |
|---|---|
| Standard shift | 10 consecutive hours between shifts |
| If next shift is a sleepover | 8 consecutive hours between shifts |
| Between sleepover and next shift | 8 consecutive hours before working again |
✔ If an employee does not receive the required rest break, they must be paid overtime (200%) until they receive the break.
🔹 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.
Employees under the SCHADS Award are entitled to meal breaks and rest breaks to ensure fair working conditions.
✔ 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.
✔ Employees are entitled to a 10-minute paid tea break for every 4 hours worked.
✔ These breaks must be counted as time worked.
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.
| Time of Remote Work | Minimum Payment |
|---|---|
| Between 6:00 AM – 10:00 PM | 15 minutes of pay |
| Between 10:00 PM – 6:00 AM | 30 minutes of pay |
| Extended work beyond the minimum period | Rounded to the nearest 15 minutes |
✅ 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.
Employers must ensure they meet mandatory superannuation obligations for SCHADS employees.
Key Superannuation Updates:
✔ Before July 1, 2022 – Super was only required if an employee earned $450+ per month.
✔ As of July 1, 2022 – Super must be paid on all earnings, regardless of income.
✔ The Superannuation Guarantee (SG) rate is currently 11.5% of ordinary earnings.
✔ The SG will increase by 0.5% annually until it reaches 12% in 2025-26.
✅ Employers must contribute superannuation for all SCHADS employees, including casuals.
✅ Failure to meet super obligations may result in penalties from the ATO.
🔗 Learn more about superannuation compliance on the ATO website.
The SCHADS Award follows the National Employment Standards (NES) for leave entitlements, including annual leave and public holiday pay rates.
✔ 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:
1️⃣ Their 38-hour pay with a 17.5% leave loading, vs.
2️⃣ Their regular pay, including Saturday penalty rates.
Whichever is higher must be paid.
✔ 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.
The required notice period depends on the employee's length of continuous service.
| Length of Service | Minimum Notice Required |
|---|---|
| Less than 1 year | 1 week |
| 1 – 3 years | 2 weeks |
| 3 – 5 years | 3 weeks |
| 5+ years | 4 weeks |
| Employees over 45 years old (with 2+ years of service) | Additional 1 week |
✔ 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).
If an employee is made redundant, they must receive a redundancy payment based on their years of service.
| Years of Continuous Service | Redundancy Pay |
| Less than 1 year | 0 weeks |
| 1 – 2 years | 4 weeks |
| 2 – 3 years | 6 weeks |
| 3 – 4 years | 7 weeks |
| 4 – 5 years | 8 weeks |
| 5 – 6 years | 10 weeks |
| 6 – 7 years | 11 weeks |
| 7+ years | 12 weeks |
🚫 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
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.
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.
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.
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.
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.
✔ Automate Payroll & Award Interpretation – Use SCHADS-compliant payroll software to handle complex calculations.
✔ Educate HR & Payroll Teams – Regularly train staff on SCHADS rules, penalties, and pay classifications.
✔ Monitor Compliance Regularly – Conduct internal audits to catch payroll errors before Fair Work does.
✔ Use Digital Timesheets & Rostering – Prevent disputes by ensuring real-time tracking of hours worked.
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
Pay Cat is the ONLY cloud payroll solution that guarantees 100% accurate SCHADS Award interpretation.
✔ Automated award interpretation to prevent payroll errors.
✔ Time & attendance syncing to eliminate manual data entry mistakes.
✔ Instant compliance alerts for incorrect pay classifications & allowances.
✔ Manager approvals & payroll processing in under an hour.
✔ Our SCHADS template is an industry-first and the ONLY 100% compliant cloud payroll solution that guarantees accurate interpretation of the SCHADS award.
See how Pay Cat can simplify
SCHADS payroll for your business.
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.