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The Comprehensive Guide to Understanding the SCHADS Award
Caoimhe Walsh
The Social, Community, Home Care and Disability Services Industry (SCHADS) Award, also known as the disability services industry award, is a crucial framework that sets the minimum standards for employment conditions in the SCHADS sectors. Whether you’re managing home carers, social service providers, or NDIS disability support workers, understanding the SCHADS award is key to ensuring fair treatment and compliance.
What Does the SCHADS Disability Services Industry Award Cover?
The SCHADS Award outlines a comprehensive range of employment conditions, including:
Minimum Pay Rates: Establishes the lowest amount workers can be paid, depending on their role and experience.
Dispute Resolution Processes: Provides structured methods for addressing workplace disputes fairly and effectively.
Consultation Rights: Grants workers the right to be consulted about significant changes to their work conditions, such as roster changes.
Employment Types: Defines various types of employment, including full-time, part-time, and casual positions, each with its specific rights and obligations.
Termination Processes: Details the procedures for ending employment, ensuring fairness and transparency.
Allowable Expenses: Identifies expenses that workers can claim, such as travel costs incurred while performing their duties.
Hours of Work: Sets standard working hours and conditions, including overtime rates and break entitlements.
Superannuation Conditions: Ensures employees receive superannuation contributions as required by law.
Annual Leave: Specifies leave entitlements, including annual leave and any additional leave for shift workers.
Who Is Covered by the SCHADS Award for Community Services Employees?
The SCHADS Award applies to a wide range of workers in the following sectors:
Crisis Assistance and Supported Housing: Employees working in emergency accommodation services, supported living arrangements, and crisis accommodation employees.
Social and Community Services: Support workers providing essential social services to communities, including counselling, welfare support, and community services employees.
Home Care: Carers offering in-home support to individuals, including personal care and household assistance.
Family Day Care Scheme: Coordinators and providers involved in family day care services.
It also includes organisations that provide policy, advocacy, or representation services to these sectors. Additionally, disability services, encompassing personal care, domestic help, and lifestyle support, fall under this award.
Who Is Not Covered by the SCHADS Award?
However, there are certain exceptions. The SCHADS Award does not apply to:
Family Day Care Workers: Care workers operating within the family day care industry are excluded. This includes family daycare employees who have distinct wage rates, payment structures, and employment terms.
Clerical and Administrative Staff: Those employed in home care, crisis assistance, and supported housing in purely administrative roles.
If another award is more specific to a worker’s role, such as the Aged Care Award, Amusement Award, Children’s Services Award, Health Services Award, or Nurses Award, then that specific award takes precedence over the SCHADS Award.
Support-worker-with-client
Breaking Down SCHADS Award Classifications and Pay Points
The SCHADS Award classifies workers into different levels and pay points, reflecting their responsibilities and experience. The SCHADS award rates are set to increase by 3.75% from 1 July 2024, as determined by the Fair Work Commission's Annual Wage Review. Here’s a simple breakdown:
Level 1: Basic tasks with significant supervision.
Level 2: Tasks with moderate supervision and some decision-making.
Level 3: Higher responsibilities, including independent decision-making.
Level 4: Advanced tasks, often involving supervisory roles.
Level 5: Senior roles, typically involving management and leadership.
Each level has multiple pay points, allowing for progression based on experience, skills, and performance. Typically, an employee moves up a pay point annually, provided they meet the required conditions, such as professional development or additional skills training.
Understanding Pay Points
Pay points are specific wage rates within each award level. They vary based on the type of shift worked. For example, an employee’s ordinary hourly rate might be different from the rate paid for:
Weekend and Public Holiday Work: Higher rates to compensate for working on these days. Any changes to shift arrangements must be based on reasonable business grounds.
Afternoon and Night Shifts: Additional pay for working outside typical business hours.
Overtime: Enhanced rates for hours worked beyond standard shifts.
Back-to-Back Shifts: Extra pay if there’s less than a 10-hour break between shifts.
These pay variations ensure that workers are fairly compensated for the different types of work they perform.
SCHADS Award Levels and Pay Points: An Example
Let’s look at a practical example to clarify how this works:
Level 4 — Pay Point 1: $39.26 per hour
Level 4 — Pay Point 2: $40.29 per hour
Level 5 — Pay Point 1: $44.92 per hour
Level 5 — Pay Point 2: $45.88 per hour
If an employee starts at Level 4, Pay Point 1, they would earn $39.26 per hour. After a year of satisfactory performance and skill enhancement, they could move to Pay Point 2, increasing their hourly rate to $40.29. Over time, they could progress through the levels, potentially reaching a management role at Level 5.
Casual vs Part-Time vs Full-Time Employees
Casual Employees: These support workers do not have guaranteed hours, so their hourly pay is higher to compensate for this uncertainty.
Part-Time Employees: Part-time support workers have the same base pay rate as full-time employees, but some allowances (like the first aid allowance) are prorated.
Full-Time Employees: Full-time support workers receive standard pay rates and full entitlements, including annual leave and superannuation.
Carer with patient
Unique Allowances Under the SCHADS Award
Additionally, the SCHADS Award covers a range of home care services, including domestic assistance, which involves personal care and support for individuals with disabilities or the elderly. The SCHADS Award also includes specific allowances that can catch employers off guard if not managed correctly. These include:
SCHADS Broken Shift Allowances
A broken shift splits an employee’s workday into two or more periods, excluding regular meal breaks. This arrangement is common in home care and disability services. The key rules are:
Maximum Shift Span: A broken shift can last up to 12 hours, including breaks. If it exceeds this, workers must be paid double time.
Rest Between Shifts: There must be at least 10 hours between broken shifts, or 8 hours if the previous shift was a sleepover.
Allowance Rate: Employees are entitled to an additional allowance depending on the number of unpaid breaks within the shift. For one break, the allowance is $19.39; for two breaks, it’s $25.67.
SCHADS Sleepover Shifts
Sleepover shifts require a support worker to stay overnight at a client’s home, being on call to assist if necessary. Key aspects include:
Shift Duration: A sleepover shift can span up to 8 continuous hours. Any work beyond this should be paid as overtime.
Facilities: Workers must have access to proper facilities, including a separate room, bed, bathroom, and kitchen/kitchenette.
Overtime Pay: If any duties are performed during the night, workers must receive at least one hour of overtime pay.
Minimum Pay: If a worker is scheduled before or after the sleepover, they must be paid for at least four hours, even if they work less.
For instance, if Lucy works from 8 p.m. to 8 a.m. (including a sleepover), she would be paid:
A sleepover allowance of $55.89 for the 10 p.m. to 6 a.m. period.
At least one hour of overtime if she’s required to work during the sleepover.
A minimum of four hours’ pay if she works before or after the sleepover shift.
Why Employers Struggle with These Allowances
Many employers find these allowances challenging due to their complexity. For example, it’s easy to overlook the need to pay a sleepover allowance even when the worker sleeps uninterrupted. Managing these manually can lead to errors, resulting in underpayments and potential penalties from Fair Work.
Using automated tools like ShiftCare can simplify compliance by ensuring accurate scheduling and payroll processing. Properly configured software reduces the risk of mistakes and helps maintain compliance with the SCHADS Award.
SCHADS Award Compliance: Navigating Common Challenges
As an NDIS employer or manager, staying compliant with the SCHADS Award can feel overwhelming. The award’s numerous classifications, SCHADS award pay rates, and rules can easily lead to mistakes, even with the best intentions. The Fair Work Ombudsman provides current rates and compliance information to help ensure adherence to wage standards in the sector. Here are some common compliance issues and how technology can help:
1. Timesheets and Billing Requirements
Manual timesheets can be inaccurate and hard to verify, leading to errors in pay. Switching to digital scheduling and time-tracking tools ensures precise records and compliance with the award. It is also important to check timesheets for the latest 'union won pay rise' to ensure all entitlements are accurately reflected.
2. Incorrect Pay Classifications
With nine pay levels, assigning the correct classification is tricky. Misclassifications or outdated pay rates can result in underpayments. Automated payroll systems can help manage these classifications and keep everything up-to-date.
3. Managing Sleepover Shifts and Allowances
Sleepover shifts have specific rules around shift spans and allowances. Manual management often leads to mistakes. Automation ensures these shifts are managed correctly, avoiding non-compliance.
4. Handling Broken Shifts and Minimum Engagements
Employees are entitled to allowances for broken shifts, but manual management can result in errors. Digital tools ensure each part of a broken shift is paid correctly, and minimum engagement periods are met. Properly managing shifts is especially crucial in the supported independent living (SIL) sector, where providing essential services and assistance during crises is vital.
5. Ensuring Adequate Time Between Shifts
The SCHADS Award mandates a minimum of 10 hours off between shifts. Manual rostering can accidentally breach this rule, leading to underpayments. Automated scheduling helps ensure workers get the rest they need and are paid fairly.
6. Calculating Annual Leave for Shift Workers
Shift support workers often accrue additional leave, which can be complex to calculate. Missing out on these entitlements can lead to underpayments. Automated tracking and payroll systems can manage these calculations accurately.
7. Keeping Accurate Records
Accurate record-keeping is essential for compliance, but paper records are prone to errors. Digital records ensure transparency and reduce the risk of non-compliance.
The Role of Technology in Simplifying SCHADS Award Compliance
Automation is key to simplifying SCHADS Award compliance. Tools like ShiftCare integrate payroll and workforce management, ensuring accurate scheduling, pay rates, and allowance calculations. By reducing the risk of errors, automation helps NDIS providers avoid underpayments and costly penalties.
With the right technology in place, NDIS providers can focus on what matters most—delivering quality care—while ensuring their staff are treated fairly and paid correctly.
By understanding these aspects of the SCHADS Award, employers can better navigate its complexities and ensure they provide fair, compliant, and supportive working conditions for their carers.
ShiftCare’s automated care management software simplifies SCHADS Award compliance, helping you manage pay points, shift allowances, and support workers without the hassle.
Stay compliant and keep your focus on delivering quality care—explore how ShiftCare can streamline your operations today.
Sign up for a free 7-day trial with ShiftCare today
Want to more information about the SCHADS Award? Explore the resources we’ve gathered for you on our website.
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Top SCHADS Award FAQs for Employers in the Community Services Sector
Here are some frequently asked questions about the SCHADS Award:
What is the SCHADS Award?
The SCHADS Award sets minimum employment standards for workers in social, community, home care, and disability services.
Who does the SCHADS Award apply to?
It applies to workers in crisis assistance, supported housing, social services, home care, and disability support roles.
How are workers classified under the SCHADS Award?
Workers are classified into levels based on their duties and experience, with pay points reflecting their progression.
How can employers ensure SCHADS Award compliance?
Employers and support workers can use tools like ShiftCare to manage payroll, scheduling, and compliance, ensuring accurate adherence to the award.
