SCHADS Award Webinar - Your Questions Answered

EffectiveHR SCHADS Award Webinar - Recorded 15 October 2025

Q&A Style Webinar covering all the pressing questions facing Australian business owners operating in the NDIS and Health Sector and impacted by the complex SCHADS Award.

Webinar Transcript

Automatic Transcription:

Introduction

Good afternoon everyone, and welcome to today’s SCHADS Award webinar. We are delighted to have you join us as we explore the practical compliance challenges faced by employers in the social and community services sector.

The SCHADS Award is one of the most complex modern awards. It is common for organisations to experience difficulties with rostering, classifications, leave management, and payroll compliance. Today’s session focuses on real questions submitted by employers and provides practical guidance that can be applied immediately.

Before we begin, I acknowledge the Traditional Custodians of the land on which we meet today and pay my respects to Aboriginal and Torres Strait Islander peoples, and to Elders past, present, and emerging.

My name is Emma, HR Consultant at Effective HR, and I am joined by my colleague Karen, Lead HR Consultant. Together, we have extensive experience supporting NDIS and community service providers across HR, work health and safety, payroll, and SCHADS Award compliance.

We received over 120 questions ahead of today’s webinar. The agenda has been tailored to the most common themes, including:

• Award streams and coverage

• Classifications and pay points

• Nurses under the SCHADS Award

• Minimum engagement periods

• Overtime and TOIL

• Meal breaks and broken shifts

• Sleepovers and the JAT’s Joint decision

• Rostering, availability, and compliance strategies

SCHADS Award Streams, Classifications, and Pay Points

The SCHADS Award is a single award with multiple streams, including:

• Home Care

• Disability Services

• Social and Community Services

Before assessing employee classifications or qualifications, employers must first determine award coverage at the organisational level. The Award applies based on the industry and services provided, not individual job titles.

For NDIS providers, coverage commonly falls under the Home Care or Disability Services streams. Social and Community Services coverage typically includes community access, support coordination, advocacy, and broader community programs.

Determining the correct classification depends on the duties performed, level of responsibility, qualifications required by the organisation, and the context of service delivery. There is no universal definition of a “Level 2 support worker”. Classification must be assessed on a case-by-case basis.

Recent case law highlights the importance of clearly defining what constitutes an “appropriate qualification” within each organisation. This must be documented through position descriptions, recruitment criteria, and internal policies.

Employers should not “split the difference” between pay points or classifications. While possible, this approach carries significant risk. A defensible classification determination provides certainty and reduces exposure to underpayment claims and penalties.

Pay point progression is governed by clause 13.3 of the SCHADS Award. Organisations should have documented systems outlining eligibility for progression to manage wage costs and ensure compliance.

Nurses and Award Coverage

Where nurses are engaged to perform nursing duties, the Nurses Award applies.

If a nurse is engaged to perform support worker duties only, it is critical that employment contracts, position descriptions, and policies clearly state that nursing qualifications are not required or utilised in the role. Failure to do so may expose the organisation to Nurses Award obligations.

Clarity in role scope and documentation is essential to avoid unintended award coverage.

Ordinary Hours, Overtime, and TOIL

The SCHADS Award does not require a strict 7.6-hour workday. Ordinary hours can be rostered flexibly, subject to award limits.

By default, the maximum ordinary shift length is 8 hours. This can be extended to 10 hours by agreement in writing. Without this agreement, overtime applies after 8 hours.

Part-time employees may work additional hours up to 38 hours per week without triggering overtime, provided the hours are within ordinary time and agreed.

Day workers and shift workers are treated differently:

• Day workers accrue overtime after 8:00 pm

• Shift workers receive shift loadings where applicable

TOIL (Time Off Instead of Overtime) is permitted under clause 28.2 but must be:

• Mutually agreed

• Recorded in writing

• Accrued hour-for-hour

• Taken within three months

Employees can request payout of accrued TOIL at any time, requiring payment in the next pay cycle.

Accurate recordkeeping is critical, as highlighted by recent enforcement action involving major employers such as Woolworths and Coles.

Meal Breaks

Employees working more than five hours are entitled to an unpaid meal break of 30–60 minutes.

An unpaid break must allow the employee to leave the workplace and be free from duties. If an employee must remain with a client or perform duties during the break, it must be paid.

If an employee works through a scheduled unpaid break, overtime may apply.

Employers must clearly document break expectations and escalation processes if breaks cannot be taken. Allowing breaks to be routinely skipped creates significant compliance risk.

Broken Shifts

The SCHADS Award does not define “broken shift”, but it generally refers to work separated by unpaid breaks that are not meal breaks.

Broken shifts are permitted for:

• Home Care employees

• Disability Services employees

They are not automatically permitted for other Social and Community Services work unless varied by an Individual Flexibility Agreement (IFA).

Broken shifts must span no more than 12 hours. Hours worked beyond this attract a 200% penalty rate.

Broken shift allowances are paid once per shift, not per work segment.

Travel between separate portions of a broken shift is not paid. Travel during continuous work is paid.

Minimum Engagement Periods

Minimum engagement requirements under the SCHADS Award are:

• Two hours for Home Care and Disability Services employees

• Three hours for Social and Community Services employees (non-disability)

This applies even where work tasks are brief, such as short transport-only services.

Employers should structure work to utilise the full minimum engagement period where possible.

Sleepovers and the JAT’s Joint Decision

A recent Federal Court decision (JAT’s Joint) determined that sleepovers are separate periods of work, not part of a continuous shift. This differs from the Fair Work Ombudsman’s long-standing interpretation.

The decision is currently under appeal.

At present, the recommended approach is to pause changes until the appeal outcome is known. The existing Fair Work Ombudsman interpretation is generally more generous to employees and carries lower risk pending appeal.

Employers must also consider consultation obligations and contractual terms before making any pay structure changes.

Rostering, Availability, and Part-Time Employment

Casual employees should have irregular and variable work patterns with no guaranteed hours.

Part-time employees must have agreed days, start times, finish times, and hours recorded in writing. Any changes require mutual agreement.

Rosters must be issued at least two weeks in advance. Ongoing changes increase compliance risk and administrative burden.

Clear availability, leave, and rostering policies are essential to manage operational and compliance risks.

Compliance Strategy and Risk Management

SCHADS Award compliance cannot be set and forgotten. Risks commonly arise from:

• Misclassification

• Incorrect allowances

• Outdated payroll settings

• Poor recordkeeping

Regular payroll audits, HR compliance reviews, and document updates are essential.

Technology and payroll systems with built-in award rules can reduce risk but must be correctly configured and reviewed.

Engaging SCHADS specialists ensures advice is tailored to organisational operations and funding models.

Effective HR Support

Effective HR is one of Australia’s specialist SCHADS Award advisory firms, offering:

• HR consulting and compliance advice

• Payroll audits and remediation

• Tailored contracts and policies

• Training and system integration

Support is available through flexible HR On-Demand services or proactive HR Partner arrangements.

Closing

Thank you for joining today’s session. If your question was not addressed, please scan the QR code to book a complimentary consultation with one of our HR consultants.

We appreciate your time and look forward to supporting your organisation with SCHADS Award compliance.

Important information

This webinar is provided for general information purposes only and does not constitute legal, industrial relations, or human resources advice. The information shared reflects the position and understanding at the time of recording.

Workplace laws, Fair Work decisions, awards, and compliance obligations can change frequently and may vary depending on your specific circumstances.

Before making any decisions that may affect your business or employees, you should seek independent, professional advice tailored to your situation. For further support, guidance, or tailored HR advice, contact our team.