The SCHADS Award changes announced by the Fair Work Commission introduce critical compliance updates. If you are providing services in the NDIS or aged care sectors, staying across these updates is essential for your operational compliance.
Here is the complete breakdown of what you need to know about the SCHADS Award changes and how software automation can streamline your roster management.
Key Updates to the SCHADS Award Changes
Minimum 2-hour shifts for disability support workers
- There are minimum engagement periods for part-time and casual workers.
- Social and community services employees (excluding those undertaking disability support work) have a 3-hour shift.
- For all other employees, the minimum engagement period of 2 hours applies.
- A transition period of 1 Feb to 1 October will allow you to negotiate shift changes with your employees.
Broken shifts to be paid
- A ‘broken shift’ is defined as a shift that includes at least 1 break (non-meal) in a 12-hour period.
- Broken shift rules apply to support worker employees who undertake disability services and home care employees.
- You may only roster an employee to work a broken shift of two periods of work with an unpaid break (excluding meal breaks).
- You can come to an agreement with an employee, where they agree to work a broken shift of 3 periods of work, with 2 unpaid breaks (other than meal breaks).
- Payment for a broken shift will be at ordinary pay. Weekends, overtime, and public holidays will attract the appropriate penalty rates.
- Employees will now be paid an additional allowance of 1.7% of the standard rate (per broken shift) or 2.25% of the standard rate for two unpaid breaks in shifts over a 12-hour period.
Cancellations
- You cannot withhold payment for a cancelled employee shift. However, you can direct employees to perform other work during rostered hours. The pay rate must be equal (or greater).
- You are permitted to cancel a shift. In such circumstances, there are several provisions you must adhere to—these can be found by visiting fairwork.gov.au.
Overtime
- You must make it clear that additional working time for employees is ‘voluntary.’
- Remuneration terms should be reviewed if employees are required to do this regularly. An employee can request this from you in writing.
On-call Allowance
- Employees must be paid for time spent working ‘remotely’ outside their ordinary hours of duty.
- A sliding scale will help you calculate the minimum payments for employees who perform remote work outside of their rostered hours and designated shifts.
VisiCase’s Award Technology
VisiCase’s Award Awareness changes and Award Interpretation features help providers apply up-to-date and accurate award management easily and consistently—this includes changes to the SCHADS award changes. 
Payroll Module
VisiCase’s Payroll and Award Module has to be set up in a way that is aligned with the external payroll system that your organization is using to pay employees.
Award Awareness (AAW)
VisiCase can be set up for simple collection of timesheet hours, allowances, and other entitlements. Using our Award Awareness (AAW) feature, the system refers to the use of Awards in the context of rostering—future / planned activities such as 1 to 1 sessions, group activities, and house / facility shifts.
Because it’s based on rostering, AAW provides estimates. This means VisiCase calculates the rates at the time of rostering, and any interpretation needs to be done manually or by your payroll system.
AAW Functions:
- Supports the SCHADS Award or other awards such as nurses or enterprise agreements.
- Support for contracted hours per employee.
- No support for allowances.
- Calculates overtime status for allocation.
- ‘Optimized employee utilization’ based on contracted hours.
- ‘Optimized employee allocation’ based on their hourly rates.
- Collection of worked hours on mobile timesheets.
- Timesheet reporting (without allowances).
- Standard timesheet extract (without allowances).
Award Interpretation (AIN)
AIN is a more accurate calculation as it’s based on actuals (because the data is historical), such as the daily amounts that someone will be actually paid.
VisiCase can interpret working hours based on award rules. can calculate payments based on different variables, including knowing when the employee’s shift starts and finishes; whether the employee was on call, had breaks, or had a sleepover; and if there were certain entitlements to be taken into account.
AIN Functions:
- All functions from AAW
- Support for award allowances
- Collection of Allowances on mobile timesheets
- Support for public holidays
- Timesheet reporting – w allowances
- Interface to the payroll system
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To keep up with ongoing compliance requirements, VisiCase recommends its partners at Amergin who monitor regulatory and legislative changes visit Amerginhub.
For more information and a full list of the changes, we recommend visiting the Fair Work Commission’s Determination (Jan 2022).
Frequently Asked Questions
What are the minimum shift changes under the SCHADS Award Changes?
The minimum shift duration for casual and part-time disability support workers is 2 hours. Social and community services employees retain a 3-hour minimum engagement, while all other covered employees have a 2-hour minimum shift rule.
How are broken shifts paid under updated SCHADS rules?
Broken shifts are paid at ordinary rates plus penalty rates for weekends, public holidays, or overtime. Employees earn an added allowance of 1.7% of the standard rate per broken shift, or 2.25% for shifts with two unpaid breaks over 12 hours.
Can an employer withhold pay for a cancelled shift under the SCHADS Award Changes?
No, employers cannot withhold payment for a cancelled shift. However, employers can direct the employee to perform alternative work during those rostered hours, provided the pay rate for the alternative work is equal to or higher than the original rate.
How is remote on-call work calculated under the SCHADS Award Changes?
Employees working remotely outside their ordinary rostered hours must receive compensation for that time. Payments are calculated using a sliding scale based on the specific duration and timing of the remote work performed outside designated shifts.
How does VisiCase assist with SCHADS Award Changes compliance?
VisiCase automates award management through Award Awareness and Award Interpretation features. It tracks rostered hours, captures allowances via mobile timesheets, handles complex break or shift rules, and interfaces directly with your external payroll system for accurate pay calculations.
