When does the clothing and equipment allowance apply under SCHADS?

It applies when an employer does not provide the required uniform. It is paid per shift or per week, whichever amount is smaller.

What is the SCHADS laundry allowance?

Employees receive a laundry allowance if the employer provides uniforms but does not launder them. It is paid based on the smaller of the shift or weekly amount.

Do part time and casual employees receive the first aid allowance?

Yes. Part time and casual employees receive 44 cents per hour up to a maximum of $16.80 per week if they are required to perform first aid duties.

What triggers the SCHADS meal allowance?

It applies when an employee works overtime and the employer does not provide a suitable meal.

How is the SCHADS on call allowance calculated?

It is calculated as a percentage of the standard rate. The rate is 2 percent for weekdays and 3.96 percent for weekends and public holidays.

The 8 SCHADS Determinations & Changes for 2022

Name: SCHADS Allowances Explained: The 7 Allowances You Must Pay Under the SCHADS Award
Uploaded: 2023-01-01
Duration: 3 min 40 s
Description: A clear walkthrough of the seven allowances in the SCHADS Award, including conditions, rates and common errors to watch for.

The 8 SCHADS Determinations & Changes for 2022

Introduction

This video explains the key changes to the SCHADS Award in 2022 and what employers need to know to remain compliant. It covers updates to part-time minimum engagement periods, broken shifts, 24-hour care shifts, and newly introduced remote work shifts. The webinar also explains changes to allowances, overtime rates, recall-to-work overtime, and client cancellation policies. The presenters provide guidance on rostering, pay obligations, and how different scenarios are handled under the award. It also highlights tools and systems, like cloud payroll software, that can help manage these changes efficiently. The session is designed to give employers a clear understanding of their responsibilities and employees’ rights.

Key Takeaways

Part-time employees now have minimum engagement periods of two or three hours per shift, depending on their sector.
Broken shifts are limited to a maximum of two periods, with allowances applied based on the type and number of periods.
24-hour care shifts require agreement from both parties, with guaranteed sleep and pay rules for active work.
Remote work shifts have defined minimum payments and recording requirements, with penalties for work outside standard hours.
Allowances for laundering, repair, on-call, and broken shifts have been updated with specific conditions.
Overtime and recall-to-work pay rates are updated according to employment type and hours worked, including client cancellation provisions.

Transcript

Welcome and Introduction

All right, terrific. So we'll make a start. Welcome everybody to the SCHADS Award Changes 2022 webinar. We've been really inundated with registrations for this event. Obviously, in our industry, this has been very topical. A lot of people are interested in what these changes are, and it hasn't allowed us a lot of time to get our systems ready for these changes. I'm sure you're all in the same boat, very curious to know what's required from an employee's perspective. Thanks again for taking time out of your busy schedules today.

A little bit about today: every four years, modern awards go through a rigorous process of being reviewed. This year, it's the SCHADS Award turn over those four years, and the changes that have been made are a result of what we call determinations. Determinations generally follow a very consultative process, so you can liaise with Fair Work when they're suggesting these changes to make sure all stakeholders are weighing in on how to make conditions and clauses more fair and equitable. If you're attending this, you might be aware that these changes take effect from 1 July this year, like most other awards with pay increases and pay condition changes.

The goal of today's webinar is to give you a strong understanding of your rights and responsibilities as an employer to your employees if you're running a business that's covered by the SCHADS Award. Before we get into it, a few housekeeping notes: as we're going through the seminar, I know a lot of people have asked about recordings and slides. We will be sending both the slide deck and a link to the recording after the session. We also have a webinar offer, so stay around to the end to hear that offer and see if it applies to you.

Q&A is something we'd really like to do, time permitting. However, funnily enough, we have hundreds of people joining us today, and it may not be practical to get through all your questions. So what we'll do is give you a link where you can book a one-on-one demo after the session. You can have individual Q&A sessions if that's something you want.

Today we’re going to cover:

The new minimum engagement period for part-time employees.
Changes to broken shift conditions.
Changes to 24-hour care shifts.
Newly created shifts called remote work shifts, a new concept in the award.
Changes to existing allowances and a few new allowances.
Changes to overtime rates.
Changes to recall-to-work overtime rates.
Changes to conditions and clauses relating to client cancellations.

We'll cover these in as much detail as possible to give you a better understanding of each change. However, this might not cover everyone's unique situation, so we’ll have Q&A if time permits, and most likely make ourselves available after the session through an online meeting.

About Pay Cat

A little bit about who we are: Pay Cat was established in 2018 to form a team of specialized cloud payroll professionals with expertise in payroll, cloud payroll technology, modern awards, and EPAs. My name is G Bell, and I’m the founder of Pay Cat. Previously, I had decades of experience as a chartered accountant, working at PWC, PKF, and running my own accounting firm. I also worked with Key for three years directly as their implementation and compliance specialist, maintaining this award template.

Minimum Engagement Period for Part-Time Employees

Part-time employees now must have a minimum engagement period, meaning a minimum number of working hours for each shift. This was previously only applicable to casual employees. To be classified as a part-time employee under the SCHADS Award, you must be working fewer than 38 ordinary hours on a reasonably predictable basis. The minimum engagement is now three hours for Social and Community Services (except disability services) and two hours for everyone else.

The amendment also applies to periods of work that form part of a broken shift. Employees who have worked beyond guaranteed minimum hours for at least 12 months can request an amendment to increase their minimum contracted hours. Employers should start consulting with part-time employees to agree on variations to meet the new minimum engagement period so the transition is smooth when the change takes effect from 1 July. If a part-time employee requests an increase in guaranteed hours, employers must respond within 21 days. When rostering staff, ensure the minimum two or three hours paid is accounted for, depending on the circumstances.

Broken Shifts

A broken shift is when a SCHADS employee works a shift within a 12-hour period but with one or more breaks in between. Previously, employees could be rostered for a maximum of three periods of work; now, this is capped at two periods. For example, a support worker in the Social and Community Services sector rostered on Wednesday might have a first shift from 9:00 to 11:00 a.m. and a second shift from 5:30 to 8:30 p.m. An employee can agree to work these broken shifts, and allowances must be paid depending on the type of shift, such as afternoon, night, or public holiday. The general rule is now a maximum of two periods of work, though we’ll discuss exceptions for three periods later.

24-Hour Care Shifts

Blake Bennett, Customer Success Manager at Pay Cat, discusses this. 24-hour care shifts only apply to Home Care employees. An employee can only work a 24-hour care shift if both parties agree. During the shift, employees must have an opportunity to sleep for a continuous eight hours in their own bed with clean linen and access to facilities like a kitchen and bathroom, along with free board and lodging. They are paid 155% for the eight hours worked. If they perform active work for more than eight hours, overtime applies: weekdays and Saturdays are time-and-a-half for the first two hours and double time thereafter; Sundays are double time; public holidays are double time and a half. Employees can refuse to work more than eight hours if it is unreasonable.

Remote Work Shifts

Introduced due to COVID and the rise of remote work. Work performed outside a designated workplace, like at home, has minimum payments: 15 minutes between 6:00 a.m. and 10:00 p.m., 30 minutes between 10:00 p.m. and 6:00 a.m., and one hour for staff meetings or training. Time beyond the minimum period is rounded up to the nearest 15-minute increment. Multiple instances in a day require separate minimum payments unless within a single minimum period. Employees are paid their minimum hourly rate, with additional loading applying for overtime, weekends, or public holidays. Employees must record these hours in a timesheet or attendance system.

Allowances

Lydia covers changes to laundering, repair, and on-call allowances. Laundering allowance: if an employee's clothing (not uniform) is soiled at work, they may receive 32 cents per shift if they notify the employer promptly, provide evidence if required, and complied with PPE. Repair allowance: if clothing is damaged (not due to normal wear and tear or negligence), the employer reimburses reasonable repair or replacement costs, subject to the same conditions as laundering. On-call allowance: 2% of standard rate during on-call hours, 3.96% for weekends/public holidays. Broken shift allowances: 1.6% for two periods; 2.25% if three periods are agreed.

Overtime Rates

Overtime rates vary by employment type and duties. For disability services, home care, or daycare employees: first two hours Monday-Saturday are time-and-a-half, then double time; Sundays double time; public holidays double time and a half. For Social and Community Services and crisis accommodation employees: first three hours Monday-Saturday are time-and-a-half, then double time; Sundays and public holidays double time and double time and a half. Part-time and casual overtime depends on hours worked per shift, week, or fortnight. Overtime beyond ten hours per day is time-and-a-half for the first two hours, then double time.

Recall-to-Work Overtime

Employees recalled after leaving the workplace must be paid a minimum of two hours per recall, even if the task takes less time.

Client Cancellations

Two scenarios:

Home care and disability: employees can be redirected to other work for the hours rostered. They are paid whichever is greater: the canceled service or new work.
If no alternative work, cancel the shift but pay what they would have earned. Offering makeup time can avoid paying the canceled shift fully, subject to conditions: notify within seven days, makeup shift within six weeks, consult the employee, ensure payment is equal or higher than the canceled service.

Systems and Software

SCHADS Award is complex. Kiosk (Keay) is recommended software for compliance, offering automation for HR, rostering, payroll, sleepover shifts, overtime, and broken shifts. Pay Cat provides setup and support. A webinar offer gives 20% off implementation fees if signed up before 30 June.

Q&A Highlights

Client cancellations apply to all employees, including casuals.
Sleepovers followed by a shift are treated as a new shift, not broken.
On-call is considered remote work, but on-call allowance applies instead of remote work rules.
Minimum engagement period applies per shift; unpaid if the employee declines the shift.
Broken shift allowances apply if more than two periods are worked; three periods require a higher allowance.
Enterprise Agreements supersede SCHADS Award rules where applicable.
Travel time between shifts depends on sector-specific rules.
Payroll for NDIS with 40 employees using Keay can take under an hour per week.
NDIS price guides may update to reflect seven-day cancellation policies.

Thank you all for joining. Watch out for the follow-up email with slides, recording, and webinar offer details. Good luck with implementing these changes, and we hope to see you at the next webinar.