The Social, Community, Home Care and Disability Services Industry Award (SCHADS) is a complex and highly specific Modern Award covering key areas such as rest between breaks and hours of work due to the nature of the industry.
Unfortunately, there is the proverbial noose around the neck of SCHADS businesses as there remains limited support from the Fair Work Commission on how best to stay compliant.
This isn’t limited to small and medium companies, major SCHADS organisations such as Aruma Services Limited and Australian Unity have found themselves in hot water in recent years.
This summary will provide you with a comprehensive understanding of everything you need to know about the SCHADS Award.
In addition, you can download a FREE copy of our SCHADS Award eBook that covers everything you need to know about the award PLUS a BONUS payroll processing checklist to help you stay compliant.
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.
However, the SCHADS Award doesn’t cover employers and employees who are covered by the following award:
To be classified as a full-time employee under the SCHADS Award, you are either:
To be classified as a part-time employee under the SCHADS Award, you must:
As part of the SCHADS Award 2022 review, the minimum engagement period now applies to part-time employees.
The minimum number of hours applicable are:
The amendment also applies to periods of work that form part of broken shifts.
Part-time employees who have worked beyond their guaranteed minimum hours for at least 12 months will, following the SCHADS Award 2022 review, be able to request an amendment to their employment agreement to increase their minimum contracted hours.
A casual employee covered by the SCHADS Award has the right to request that they be converted to full-time or part-time employment if the casual employee is a regular employee, meaning they worked a regular pattern of hours for the 12 months before the request, without significant adjustments.
This request will need to be made in writing, and there should be no reasonable business grounds for refusal by the employer unless it includes:
All grounds of refusal should be known or reasonably foreseeable, and the decisions need to be made within 21 days of the request being received.
Each financial year, adjustments are made to National Minimum Wage and in July, the SCHADS Award pay rates 2024 will reflect any such changes that impact their employees.
Note: You can access all previous years minimum pay rates in the Award’s pay guide summaries, including the SCHADS Award pay rates 2023.
You can refer to the pay guide summaries in the Social, Community, Home Care and Disability Services Industry Award , which you can access on the Fair Work website to review the latest wage tables for each category of employee.
When an employee has reached 12 months’ continuous employment, they’ll be eligible for progression from one pay point/ Award level to the next if they are deemed competent and satisfactory in performance during this period or if they have new or enhanced skills.
The SCHADS Award has different classification levels and pay points that determine the minimum wage rates for employees.
Employee |
Award Levels |
Social and Community Services Employees |
This group has 8 classification levels (Level 1 to Level 8), with each level having multiple pay points. Employees progress through the pay points based on length of service and satisfactory performance. |
Crisis Assistance and Supported Housing Employees |
This group has 5 classification levels (Level 1 to Level 5), each with multiple pay points that employees can progress through. |
Family Day Care Employees |
This group has 5 classification levels (Level 1 to Level 5) with no specific pay point progression provisions. The general pay point progression clause applies. |
Home Care Employees |
This group has 5 classification levels (Level 1 to Level 5) with no special pay point progression provisions. The general pay point progression clause applies. |
The classification level determines the baseline wage rate. The pay points then allow employees to progress to higher wage rates over time within their classification level based on tenure and performance.
Under the SCHADS Award, the ordinary hour per week should be 38 or at least an average of 38 hours per week based on the following conditions:
Under the SCHADS Award, the ordinary hour per week should be 38 or at least an average of 38 hours per week based on the following conditions:
The maximum number of hours per shift can be increased to 10 hours per shift if it’s agreed in writing.
Between 6am and 8pm, Monday to Saturday
Employees that work hours per the table below are considered shiftworkers under the Award:
Shift Type |
Penalty Rate (% of Minimum Hourly Rate) |
Afternoon shift - shift ends between 8pm and midnight, Monday to Friday |
112.5% |
Night shift - finishes after midnight or starts before 6am, Monday to Friday |
115% |
Public holiday shift - any time worked during the public holiday |
250% |
All employees except casuals should have no less than two full days off per week or four full days off each fortnight or eight full days in each four-week cycle. These need to be consecutive days off where it’s possible.
7 days’ notice needs to be given for any changes in rosters.
If a client cancels or changes home care services, notice must be given to the employee by 5pm the day before if no payment is to be made. If there’s no notice given, then the employee will be entitled to receiving payment for the hours rostered on that day.
The other alternative is that the employer can direct the employee to make-up the cancelled time in the next fortnight in other areas of the business.
As part of the SCHADS Award 2022 review, roster changes can now be made if an employee proposes one to accommodate an agreed shift swap with another employee, so long as the employer agrees.
This only applies to social and community services employees who are working in home care and disability services.
A broken shift is when an employee has one or more breaks (not including their meal break) and the shift is no more than 12 hours.
A minimum of 10 hours between broken shifts on consecutive days must be given.
If the employee works more than 12 hours, double time will be paid.
As part of the latest SCHADS Award review, from 1 July 2022, broken shifts are now classified into two different sections. An employer and employee can agree for the employee to work broken shifts of three periods, or otherwise, the employer can roster the employee for a broken shift of two periods.
In other words, you can still roster a SCHADS worker for a broken shift of two periods of work (with one unpaid break), but you will have to request permission to do so if you want to schedule them for three periods of work (with two unpaid breaks).
This will only apply to social and community services employees for disability services work and home care.
Different allowances will now also be introduced for each of these scenarios. Employees working a two-period broken shift must be paid at 1.7% of the standard rate. And employees working a three-period broken shift must be paid at 2.25% of the standard rate.
In addition, each employee must be paid a shift allowance depending on what type of shift they work (e.g., afternoon, night, or public holiday shift).
This is when an employer requires an employee to provide home care services overnight at the client’s home but that isn’t considered a 24-hour care shift:
As part of the latest SCHADS Award review, from 1 July 2022, clean linen will need to be provided in addition to the separate room with a bed and facilities.
A 24-hour care shift is when an employee must be available in a client’s home to provide prescribed home care services for a 24 hour period. This shift should go for no more than 8 hours.
The employee must be given the opportunity to sleep during the shift and where appropriate, given a private room with a bed.
They will be paid at 155% of their appropriate rate for each 24 hour period.
As part of the latest SCHADS Award review, from 1 July 2022, if the employee is required to provide more than 8 hours of care, that work will be considered overtime at a rate of 150% for the first 2 hours and 200% thereafter. However, the employees are allowed to refuse to work more than 8 hours during a 24-hour care shift if its unreasonable.
If an employee agrees to take a client on excursion activities that involve staying overnight away from home, the following provisions apply:
As part of the latest SCHADS Award review, from 1 July 2022,should a client cancel (or reschedule) a home care or disability service within 7 days, the employer can either redirect the employee to perform other work during the rostered hours, cancel the shift entirely, or allocate make-up time.
Whichever option the employer decides to go with, the employee must be paid accordingly.
For more information regarding client cancellations and the latest award updates, check out our breakdown here.
The following penalty rates apply under the Social, Community, Home Care and Disability Services Industry Award for weekend work:
Day |
Penalty Rate |
Saturday |
150% |
Sunday |
200% |
Casual employees should be paid their casual loading in addition to the penalty rates.
An employee needs to take an unpaid meal break of 30 to 60 minutes if they’ve worked for more than five hours.
If they work through their meal break, they will be paid overtime rates until their meal break is taken.
If the employee needs to have their meal with a client, they will be paid their normal ordinary rates and counted as time worked.
A 10-minute tea break every 4 hours worked must be given to the employee and counted as time worked.
Type of Service |
Date & Time |
Overtime Rate |
Day Care Supported housing services Disability Services |
Monday to Saturday |
First 2 Hours - 150% |
Social and Community Services Crisis Accommodation |
Monday to Saturday |
First 3 Hours - 150% |
Day Care Supported housing services Disability Services Social and Community Services Crisis Accommodation |
Sunday |
200% |
Day Care Supported housing services Disability Services Social and Community Services Crisis Accommodation |
Public Holiday |
250% |
Condition |
Overtime Rate |
If employees worked more than 38 hours per week or 76 hours per fortnight except for Sundays |
First 2 Hours - 150% |
Sunday |
200% |
Public Holiday |
250% |
If employees worked more than 10 hours per day |
First 2 hours - 150% |
As part of the latest SCHADS Award review, from 1 July 2022, all time worked outside the normal span of hours has now also been included in the overtime rates for part-time and casual employees:
Monday to Saturday |
Sunday |
Public Holidays |
|
Worked outside of the regular span of hours. |
1.5x for the first 2 hours. 2x thereafter |
2x |
2.5x |
An employee and employer can agree for the employee to take time off instead of being paid for overtime worked. There are a few conditions that need to occur:
For all employees except casuals, a minimum of 10 consecutive hours off between shifts without loss of pay is required under the SCHADS Award.
If the employee works without ten consecutive hours off, they will be paid at 200% until they finish their shift. They will then need ten consecutive hours off duty without loss of pay.
A minimum of 2 hours’ work is to be paid if an employee is recalled to work overtime after leaving the work premises.
If your employee has been recalled to work overtime and works more than 4 hours, they must have a 20-minute meal break and another 20-minute break for each subsequent 5 hours’ overtime. All of these breaks must be counted as time worked, and the meals must be free of charge.
For home care employees who are carrying out work with higher wage rates, they must be paid at the higher wage rate:
If the employee has worked five consecutive days or more at a higher classification, they must be paid at the minimum rate based on the classification they worked.
As part of the latest SCHADS Award review, from 1 July 2022,a new remote work clause was introduced. According to the new determination, remote work applies where an employer directs or authorises an employee to perform additional hours away from their designated workplace.
Employees performing remote work receive minimum payments and other rates depending on the time of day they work, in lieu of any other penalties and overtime.There are two primary minimum payments when it comes to remote work, depending on what period the remote work is being performed:
Any time worked continuously beyond the minimum hours paid will be rounded to the nearest 15 minutes. For example, if an employee works for 1 hour and 5 minutes, they’ll get paid for 1 hour and 15 minutes.
If an employee is not on call, the employer is required to pay them a minimum of one hour’s pay. And if the remote work involves staff meetings or training, it’s also a minimum of one hour’s pay.
You’ll need to pay at your employee’s minimum hourly rate, but there will be instances where you’ll attract additional loading, such as remote work outside of a certain span of hours, doing overtime or working on weekends or public holidays.
And, if your employees complete remote work, they must maintain and provide a timesheet of the remote work completed to their employer.
Search our database for all relevant allowances to the various modern awards.
As part of the review in 2022, specific changes have been made to the laundry and on-call allowance. There has also been a new allowance introduced: the repair allowance.
As of 1 July 2022, however, employers are required to pay a super guarantee on behalf of eligible employees, regardless of how much they are paid.
Currently, a rate of 11% of an employee’s ordinary earnings must be contributed.
Note: The super guarantee will increase 0.5% each financial year until it reaches 12% in the 2025/26 financial year.
Under the SCHADS Award, a rate of 17.5% leave loading on top of their annual leave is applied when an employee takes paid time off.
Employees must be paid the higher of:
Example:
If a full-time employee applies for leave between Thursday this week and Wednesday next week, he or she would typically work 8 hours of shiftwork on a Saturday too.
The employer must calculate 38 hours, including a 17.5% leave loading and compare with how much the employee will typically receive if they had been paid working across that period with the Saturday penalty rates.
Whichever of the two calculations is higher is how much the employee should be paid across that period of time, not for individual days.
The idea is so that the employee is protected from being paid less for going on paid annual leave.
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.
And 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 purposes of the NES and are entitled to one additional week of annual leave.
All public holiday entitlements are per the National Employment Standards (NES) and the penalty rates outlined in the table above.
All public holidays are to be paid 250% of their ordinary pay rate except for casual employees who are paid 275% of their ordinary pay rate (inclusive of casual loading).
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