Business Toolbox

A recent court decision has clarified how ‘sleepovers’ are treated under the Social, Community, Home Care and Disability Services Industry Award (SCHADS Award).

The ruling is particularly relevant for employers who roster workers for overnight care, such as aged care and disability support providers. 

“Employers who have employees providing in-home care need to be aware of these changes to the interpretation and application of provisions where an employee ‘sleeps’ at the client’s premises for an eight-hour period and performs work as required overnight,” said Laura Fry, Business Law WA Managing Associate, Workplace Relations. 

“Typically, employees are rostered to work either or both sides of a sleepover shift. For example, they may work 6pm-10pm, then have a sleepover from 10pm-6am, then work 6am to 10am.” 

The question at the centre of the Fair Work Ombudsman v Jats Joint case was whether a sleepover should be treated as part of a continuous shift or as a break between two separate shifts. 

This matters because it affects: 

• Whether shift loadings apply 
• How breaks between shifts are calculated 
• Overall payroll costs and rostering practices 

What the court decided 

On March 20, the Full Court upheld an earlier decision that: 

• A sleepover period is not considered active work (unless the employee is required to wake and perform duties) 
• It can be treated as a separate period, rather than part of a continuous shift 
• It can count as a break between shifts under the SCHADS Award 

This means employers are not required to treat the entire period (before, during and after a sleepover) as one continuous shift for the purpose of applying shift loadings. 

Instead, shift penalties apply only to the actual working hours before and after the sleepover. 

Why this matters for employers 

This decision provides some clarity for businesses managing overnight care arrangements, particularly when it comes to: 

• Structuring rosters 
• Managing labour costs 
• Applying the correct pay rates 

However, the court also noted that the SCHADS Award was not clearly drafted, which has contributed to confusion in this area. 

But changes may be coming 

While the court decision currently stands, further changes to the SCHADS Award are expected. 

Proposed changes include: 

• Treating sleepovers as part of a continuous shift (not a break) 
• Allowing longer shifts where a sleepover is included 
• Applying shift penalties only to periods of active work 
• Requiring overtime for shifts exceeding set limits 

These changes are not yet in effect, and the start date is still to be confirmed. 

What should you do now? 

Until the updated SCHADS Award comes into force, the court’s decision remains the key reference point for interpreting sleepover provisions. 

Employers should: 

• Review current rostering practices 
• Check how sleepovers are being paid 
• Stay informed on upcoming SCHADS Award changes 

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.