If you’re an NDIS provider, ensuring payroll and HR compliance is crucial. That’s because most of your staff are covered by the Social, Community, Home Care and Disability Services (SCHADS) Award 2010. This Award sets the rules for pay rates, work classifications, allowances, rosters, and entitlements across the disability and community services sector.
For NDIS providers, understanding the SCHADS Award isn’t just about ticking a compliance box. It’s about making sure your staff are treated fairly, paid correctly, and supported in ways that help you deliver better services to participants.
The SCHADS Award (Social, Community, Home Care and Disability Services Industry Award 2010) is the backbone of workplace rules in this sector. One of the most important things to get right is knowing who the Award applies to and what kinds of employment arrangements it recognises.
In this article, we’ll focus on one of the most important starting points: who the SCHADS Award applies to and the types of employment relationships it recognises. Getting this right ensures that staff are correctly classified, fairly paid, and given the right entitlements from the outset.
Recommended Reads
Who is Covered Under the SCHADS Award?
The SCHADS Award applies to a wide range of employers and employees across Australia in the social and community services, home care, crisis assistance and supported housing, and family day care sectors. This includes employees who work directly in these areas and those in specific classifications listed under the Award. For NDIS providers, this means most frontline staff and support workers providing direct care and assistance to participants are covered.
Coverage examples include:
- Disability support workers providing personal care and support
- Home care employees assisting with daily living tasks
- Crisis accommodation and family violence support staff
- Case managers, counsellors, and social workers
- Some administrative staff whose roles are directly linked to service delivery
Who is Not Covered?
The SCHADS Award does not cover all employees in these sectors. Key exclusions include:
- Employees who are covered by another modern award, such as the Aged Care Award, Nurses Award, Health Professionals and Support Services Award, Amusement, Events and Recreation Award, or Fitness Industry Award
- Family day care workers who have their own specific arrangements
- Employees in purely administrative or clerical roles not directly linked to service delivery
- Senior managers and executives whose roles fall outside the Award classifications
Additional points to keep in mind:
- If an employer supplies labour on an on-hire basis in these industries, those on-hire employees are also covered under the SCHADS Award while performing work in the relevant sectors.
- Where an employer is covered by more than one award, each employee is covered by the award classification that is most appropriate to the work they actually perform and the environment in which they normally work.
Misclassifying employees, such as treating someone as a contractor when they are actually covered by the SCHADS Award, is a common compliance risk and can lead to underpayment and legal penalties.
Always verify the correct award coverage and classification for each employee before finalising employment arrangements.
Types of Employment
The SCHADS Award recognises three main types of employment: full-time, part-time, and casual. Each type comes with specific rules and entitlements that NDIS providers must understand to ensure compliance and fair treatment of staff.
Full-Time Employment
-
Full-time employees are engaged to work 38 hours per week or an average of 38 hours across a roster period.
-
They are entitled to the full range of leave and benefits under the Award, including annual leave, personal/carer’s leave, public holidays, notice of termination, and redundancy pay.
-
Full-time employees have a stable and predictable schedule, making workforce planning simpler for providers.
Part-Time Employment
-
Part-time employees work less than 38 hours per week, but their hours are regular and predictable.
-
Before starting, employers and employees must agree in writing on a regular pattern of work, including the number of hours, the days they will work, and start and finish times.
-
Any changes to these hours require agreement from both parties in writing.
-
If a part-time employee has regularly worked more than their agreed hours for at least 12 months, they can request an increase in guaranteed hours.
-
The employer must respond and can only refuse on reasonable business grounds after discussion with the employee.
-
Part-time employees receive the same entitlements as full-time staff, but on a pro-rata basis, reflecting their reduced hours.
Casual Employment
-
Casual employees do not have guaranteed hours and are engaged as needed.
-
They are paid hourly, including a 25% casual loading instead of paid leave entitlements like annual or personal leave.
-
Casual employees are still entitled to superannuation and other mandatory benefits
Part-time and casual employees must be paid for a minimum number of hours for each shift or broken shift, calculated at their standard rate.
-
For social and community services employees, the minimum is usually three hours per shift, except when they are providing disability services.
-
For all other employees, the minimum payment is two hours per shift.
When engaging staff, employers need to clearly explain the type of employment at the start. Each employment type comes with its own rules for notice, working hours, pay, and leave entitlements.
-
Casual employees enjoy flexibility and typically receive higher hourly rates, but they don’t get paid leave or redundancy.
-
Full-time and part-time employees, on the other hand, have more predictable schedules and access to all entitlements.
Employers also have a responsibility to handle requests from casual staff fairly, whether it’s about increasing hours or converting to a permanent role, responding in writing and negotiating in good faith to ensure transparency and fairness.
Understanding these employment types under the SCHADS Award is crucial for NDIS providers. It ensures correct pay, compliance with the Award, and fair treatment, which in turn supports staff satisfaction, retention, and quality of care for participants.
Notice Periods for Termination of Employment
For different awards, just as rules around pay and entitlements can vary, the required notice periods for ending employment can also differ. Therefore, it’s important to look specifically at how the SCHADS Award handles notice and redundancy.
The notice period an employer or employee must give when ending employment depends on the employee’s continuous service.
Continuous service means the total length of time an employee has been employed by the business. It includes things like authorised unpaid leave (for example, unpaid parental leave). It does not include unauthorised absences or leave taken without approval.
The minimum notice periods are:
- Up to 1 year of service - 1 week’s notice
- More than 1 year and up to 3 years - 2 weeks’ notice
- More than 3 years and up to 5 years - 3 weeks’ notice
- More than 5 years - 4 weeks’ notice
Keep in Mind:
- Notice must always be given in writing, clearly stating the final working day.
- If an employee (over 18) resigns without giving the correct notice, the employer may deduct up to one week’s wages from their pay.
- This deduction must not be unreasonable, and it can only be taken from wages owed under the award, not from leave balances or other entitlements.
- However, if the employer agrees to accept a shorter notice, then no deduction can be made
- Employees who are terminated by the employer are entitled to reasonable paid time off (up to one day) to attend job interviews.
Redundancy Provisions under SCHADS
Redundancy applies when an employee’s role is no longer required due to business changes. In these cases, employees are entitled to redundancy pay and support to transition into new work
- If an employee is moved to a lower-paid position because of redundancy, they must either receive the proper notice or be paid the difference in wages for the notice period.
- Employees who resign during their redundancy notice period are still entitled to redundancy benefits for the time they worked.
- Employees facing redundancy can take up to one day of paid leave per week (during their notice period) to attend interviews and search for new work. Employers may request proof of attendance.
Redundancy and notice periods are often overlooked in the disability sector. Make sure these are factored into your HR and financial planning.
Individual Flexibility Agreements (IFAs)
While the SCHADS Award sets standard rules for hours, pay, and entitlements, sometimes employers and employees may want arrangements that suit their specific needs.
Individual Flexibility Agreements allow them to make these adjustments, provided the changes benefit the employee overall and are genuinely agreed upon by both parties
The Award allows employers and employees to enter into Individual Flexibility Agreements to vary certain conditions (e.g. hours, penalty rates, allowances). But:
- The agreement must benefit the employee overall compared to the Award.
- It must be in writing and signed by both parties.
- It can’t be forced - must be genuinely agreed.
Why This Matters for NDIS Providers
Understanding who is covered and the types of employment under SCHADS is more than just compliance. It helps you:
- Pay staff correctly and avoid costly underpayment claims.
- Attract and retain workers by offering the right employment options.
- Plan rosters effectively without breaching Award rules.
- Build trust with staff by being transparent about rights and entitlements.
In a sector where workforce shortages are a real challenge, getting these basics right can give you a big advantage.
Quick Questions
- Who is covered under the SCHADS Award?
Most frontline staff in disability, home care, and community services roles. Excludes contractors, nurses, and senior executives. - Are contractors covered under SCHADS?
No. Contractors are not employees and are not covered. But if you misclassify a worker as a contractor, you may still owe them employee entitlements. - What’s the difference between a part-time and a casual worker?
Part-time staff have regular agreed hours and access to leave. Casuals work irregular hours, get a loading, but no paid leave. - Do casuals get redundancy pay?
No. Only full-time and part-time employees are entitled to redundancy. - Can I change an employee’s status from casual to permanent?
Yes. If a casual has worked regular hours for 12 months, they may request conversion to permanent. Employers must seriously consider the request. - Does SCHADS cover admin/office staff in NDIS?
Only if their role is directly linked to service delivery. Senior managers or purely corporate staff are usually not covered.
Conclusion
Understanding the SCHADS Award doesn’t have to be overwhelming. For NDIS providers, it’s about getting the basics right: knowing who’s covered, classifying roles properly, and choosing the right employment type. This protects your business from legal risks and helps build a fair, transparent workplace where staff feel respected and supported. In a sector where retention matters, compliance isn’t just a legal box: it’s a strategic advantage.
