Changes to SCHADS Award Sleepover Provisions

CHAMBER NT BUSINESS NEWS

20 May 2026

 The Fair Work Commission has made changes to the sleepover provisions in the Social, Community, Home Care and Disability Services Award 2010 (SCHADS Award), with effect from 1 June 2026. 

Background
In April 2026, a Full Bench of the Fair Work Commission issued a determination to clarify how sleepover shifts are treated under the SCHADS Award. The changes aim to remove uncertainty in the current provisions and ensure the Award continues to provide a fair and relevant minimum safety net.

This update follows the Full Federal Court decision in Jats Joint Pty Ltd v Fair Work Ombudsman [2026] FCAFC 25, which also considered the interpretation of sleepover shifts and related penalty entitlements.

Key Changes
The updated provisions confirm the following:

         🔸 Ordinary hours and shift length
               Employees may work up to 12 ordinary hours in a shift where work is performed before and/or after a sleepover period. This includes up to 8 ordinary hours worked on either side of the sleepover by agreement.

         🔸 Single shift treatment
                A sleepover is not considered a break between shifts. Instead, work performed before and after the sleepover is treated as part of one continuous shift.

         🔸Application to part-time and casual employees
              Part-time and casual employees can also work up to 12 hours in these circumstances without triggering overtime.

         🔸 Shift penalties
               Penalty rates are applied separately to the hours worked before and after the sleepover, depending on when those hours are worked.

Example:
Where an employee works from 8.30pm to 11.00pm before a sleepover, and then from 7.00am to 10.00am after the sleepover, the applicable shift penalty (e.g. afternoon shift loading) will apply only to the relevant portion of the shift—in this case, the pre-sleepover hours.

Commencement Date
The changes take effect from 1 June 2026, applying from the first full pay period on or after this date.

What This Means for Employers
Employers in the Social, community, home care and disability services sector should:
          🔸 Review rostering practices involving sleepover shifts
          🔸 Check payroll configurations for correct application of ordinary hours and penalties
          🔸 Ensure compliance with the revised Award provisions ahead of the commencement date