The Fair Work Commission has announced significant changes to the SCHADS Award, coming into effect on 1 June 2026.
With only six weeks to prepare, employers in the social, community, home care and disability services sectors should act now to review their rostering practices and payroll systems.
These updates bring important clarifications and new flexibilities but also introduce complexity that requires careful implementation.
What’s Changing?
Extended Ordinary Hours Around Sleepovers
Employees can now work up to 12 ordinary hours (by agreement) when work is performed before and after a sleepover.
- A maximum of 8 ordinary hours can be worked before or after the sleepover period
- Any hours worked beyond 12 will attract overtime
- Work performed before and after a sleepover is now treated as one continuous shift
- Do not lose overtime entitlements when shifts cross over two calendar days
- Hours before a sleepover may attract afternoon shift penalties
- Hours after a sleepover may attract:
- Night shift penalties (if commencing before 6:00am), or
- Ordinary day shift rates
- Reviewing rostering practices to align with the new ordinary hours framework
- Updating payroll systems to correctly apply overtime and penalty rates
- Ensuring employee agreements are in place where extended hours are used
- Training payroll and HR teams on the updated Award interpretation
If there is no agreement from the employee, existing rules on ordinary hours and overtime continue to apply.
Why this matters:
This provides greater flexibility for service delivery but requires clear employee agreement and careful tracking of hours.
Sleepovers Are Not Breaks
The Commission has clarified that sleepover periods are not considered breaks between shifts.
Why this matters:
This impacts how employers calculate shift lengths, overtime thresholds, and compliance with minimum break requirements.
Overtime Protections Strengthened
New wording has been added to overtime clauses to include “or shift”, ensuring employees:
While many employers have already applied this approach following guidance from the FWO, it is now formally embedded in the Award.
Why this matters:
This removes ambiguity and ensures consistent application across the industry.
Penalty Rates Around Sleepovers
Work performed before and after a sleepover will now be treated separately for penalty rate purposes.
For example:
Why this matters:
Payroll calculations will become more nuanced, particularly for overnight and extended shifts.
What Employers Should Do Now
With the implementation date fast approaching, employers should prioritise:
Failure to correctly implement these changes could lead to underpayments and compliance risks.
These changes represent a meaningful shift in how working hours around sleepovers are managed under the SCHADS Award. While they introduce greater flexibility, they also require precision in both rostering and payroll.
Now is the time to act before 1 June arrives.
Read the full decision from the Fair Work Commission: https://www.fwc.gov.au/documents/decisionssigned/pdf/2026fwcfb79.pdf
Read the Determination here:
https://www.fwc.gov.au/documents/awards/variations/2023/pr798459.pdf
