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