In a previous article, we provided details on the Full Court's decision of Fair Work Ombudsman v Jats Joint, and how sleepovers are treated under the SCHADS Award. However, at the time, further changes to the Award were yet to come.
Those changes have now been confirmed. Business Law WA explains how this may affect you.
What has changed
The Fair Work Commission (FWC) has confirmed changes to the Social, Community, Home Care and Disability Services (SCAHDS) Award, clarifying how sleepover shifts interact with ordinary hours, overtime, breaks and shift penalties.
- Sleepovers are no longer treated as breaks: Under the varied Award, a sleepover is not a break between shifts. Where an employee performs work immediately before and after a sleepover, those work periods are treated as part of the same shift.
- Longer shifts can be agreed where a sleepover is included: Employers and employees can now agree to shifts of up to 12 ordinary hours where work is performed on both sides of a sleepover period.
- Limits apply to ordinary hours around sleepovers: While a 12‑hour shift is permitted by agreement, a maximum of eight ordinary hours can be worked either before or after a sleepover. Any additional hours must be paid as overtime.
- Overtime clarified for shifts spanning two days: Overtime will apply once ordinary hours are exceeded per day or per shift.
- No double overtime entitlement: The FWC said reference to “day or shift” does not create a double entitlement. Overtime is triggered either by exceeding daily limits or shift limits, not both.
- Shift penalties apply only to active work: Shift loadings apply to the actual hours worked before and after a sleepover, not to the sleepover period. The Award will now include an example to help employers apply this correctly in practice.
Why this matters for SCHADS employers
For disability support, aged care and community services providers, these changes are significant. They provide certainty around:
- how sleepovers fit within a single shift
- when ordinary hours end and overtime begins
- how shift penalties should be applied
- how to roster overnight care lawfully and efficiently
The FWC said uncertainty in the SCHADS Award had contributed to confusion and inconsistent practices across the sector. These variations are intended to provide clearer rules going forward.
When the changes take effect
The Award variations start on June 1, 2026.
This gives employers a short lead time to review rostering practices, payroll settings and employment agreements, and to consult with affected employees.
What businesses should do now
SCHADS employers should:
- review sleepover rostering arrangements
- check how ordinary hours and overtime are currently calculated
- ensure payroll systems reflect the new rules
- plan for consultation where roster changes are required
- review employment contracts and HR policies to ensure consistency with the new rules
- seek advice if unsure how the changes apply to their workforce
Until June 1, 2026, the Full Court decision remains the key reference point. From that date, employers will need to comply with the varied SCHADS Award provisions.
Business Law WA can provide legal advice on Award compliance, interpretation and payroll audits. Please contact [email protected] or call 08 9365 7560 to arrange complimentary consult.
This article is authorised by Business Law WA, an incorporated legal practice and wholly owned subsidiary of CCIWA. The content of this article is general in nature and is not legal or professional advice and should not be relied upon as such.
