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SCHADS Award Sleepover Shift Updates from 1 June 2026

Following its review of sleepover arrangements the Fair Work Commission (FWC) made changes to the Social, Community, Home Care and Disability Services Industry Award 2010 (SCHADS Award)  The changes came into effect from the first full pay period starting on or after 1 June 2026. The changes deal with sleepover rostering, overtime, shift structure and pay issues related to work performed before and after a sleepover period. What has changed? Where work is performed immediately before and immediately after a sleepover period, an employer and employee may agree to extend the maximum ordinary hours of work from 10 to 12 hours per shift. While the SCHADS Award does not require this agreement to be in writing, employers should ensure the employee clearly understands and agrees to the arrangement, as it may defer the point at which overtime becomes payable. In these circumstances, a maximum of eight ordinary hours may be worked before the sleepover period, and a maximum of eight ordinary hours may be worked after the sleepover period. This prevents employers from rostering 12 ordinary hours in a row before or after the sleepover. Please see our illustration example of how the 12-hour ordinary hours arrangement and the eight-hour limits before and after a sleepover period apply in practice. Importantly, the minimum engagement requirement remains unchanged. Where work is rostered immediately before and/or immediately after a sleepover period, the employee must be rostered for, or paid, at least four hours for at least one of those periods. Penalties and shift allowance The Fair Work Commission also clarified that while work performed immediately before and immediately after a sleepover period is treated as part of the same shift for rest break purposes, each period of active work must be assessed separately when determining applicable shift allowances and penalty rates. This means different shift allowances may apply before and after the sleepover period depending on the hours worked. This clarification follows the Federal Court's decision and confirms that employers should not automatically apply a single shift allowance across the entire sleepover arrangement. Instead, the work performed before the sleepover and the work performed after the sleepover should be assessed independently under the relevant Award provisions. To help illustrate how this operates in practice, see our example of shift allowances applying before and after a sleepover period. Overtime clarification The Fair Work Commission has also clarified how overtime will apply where a shift spans across two calendar days, such as a sleepover shift. Under the updated SCHADS Award, overtime is triggered when an employee exceeds the relevant ordinary hours limit on either a day or shift basis. This clarification ensures employees do not lose an overtime entitlement simply because a shift crosses midnight, while also confirming the same hours do not attract overtime twice. For sleepover arrangements, overtime will apply once the applicable ordinary hours limit has been exceeded. This means overtime is generally payable after more than 10 ordinary hours are worked in a shift. However, where an employer and employee have agreed to the extended sleepover arrangement, overtime will not apply until more than 12 ordinary hours are worked as part of the shift. This change provides greater certainty for employers and employees when calculating overtime for overnight and sleepover arrangements. Changes to Modern Awards can be difficult to understand. Our specialist team at Peninsula are available 24/7 to answer your questions and offer invaluable advice on the SCHADS Award and sleepover changes. This article is for general information purposes only and does not constitute as business or legal advice and should not be relied upon as such. It does not take into consideration your specific business, industry or circumstances. You should seek legal or other professional advice regarding matters as they relate to you or your business. To the maximum extent permitted by law, Peninsula Group disclaim all liability for any errors or omissions contained in this information or any failure to update or correct this information. It is your responsibility to assess and verify the accuracy, completeness, and reliability of the information in this article.

Guide

Fair Work Information Statement

Business owners and employers in Australia have to meet legislation and follow the law to avoid risks of non-compliance. One of their key duties under employment legislation is to provide employees with relevant documents such as Fair Work Information Statement. What is a Fair Work Information Statement? A Fair Work Information Statement (FWIS) is a document issued by the Fair Work Ombudsman (FWO) that gives new employees a general overview of the National Employment Standards (NES) and conditions of employment. As a business owner and employer, you have a legal obligation to give new employees a copy of the FWIS before or as soon as practical after they start employment. You can give them a copy of the statement in-person or by email, email link to the FWO website, mail, or fax. Under the Fair Work Act 2009 employers who do not distribute copies of the Fair Work Information Statement may face a financial penalty for a breach of the NES. Information Statements Employers must give every new employee one or more information statements when they start work. All new employees must receive the Fair Work Information Statement regardless of their employment type. If the employee is casual, they must also receive the Casual Employment Information Statement. If the employee is employed for a fixed term, they must also receive the Fixed Term Contract Information Statement. Information contained in the Fair Work Information Statement The FWIS sets out an employee’s main rights and entitlements at work. The statement also contains information about the Fair Work Commission (FWC) and Fair Work Ombudsman (FWO). Each year the FWO updates the FWIS and publishes a new version of the statement on or around 1 July. All employers are required to distribute the most up-to-date version of the statement to new employees. Inside the FWIS is useful information about the following: The 10 National Employment Standards (NES) Modern Awards Agreement-making under the Fair Work Act 2009 Right to freedom of association Role of the Fair Work Commission and the Fair Work Ombudsman Termination of employment Individual flexibility agreements Right of entry Protection from discrimination and other adverse action Flexibility in the workplace and the right to request flexible working arrangements What are the National Employment Standards? The National Employment Standards (NES) set out the minimum employee rights as they apply under Australian workplace law. Below are the 11 National Employment Standards: Maximum weekly hours of work: for a full-time employee, this is 38 hours per week unless their award or enterprise agreement specifies different hours, plus reasonable additional hours. Requests for flexible working arrangements: Certain employees have the right to ask for a change to their current working arrangement. Parental leave and related entitlements: Up to 12 months of unpaid leave and the right to ask for an extra 12 months of unpaid leave. Also includes adoption-related leave. Annual leave: Four weeks paid leave per years. Some shift workers are entitled to an extra week of annual leave. Personal/carer’s leave, compassionate leave, and family and domestic violence leave: 10 days of paid personal/carer’s leave, two days unpaid carer’s leave as required, two days compassionate leave as required, and 10 days of paid family and domestic violence leave each year (in a 12-month period). Community service leave: Unpaid leave for voluntary emergency activities and leave for jury service. Full-time and part-time employees are entitled to ‘make-up pay’ (the difference between any jury duty payment from the court and their base rate of pay for the hours they would have worked) for the first 10 days of jury duty. Long service leave: Paid leave for employees who have been with the same employer for a long time. Public holidays:A paid day off on a public holiday (unpaid for casuals), except where the employee is reasonably asked to work. Notice of termination and redundancy pay: Up to five weeks of notice of termination and up to 16 weeks of redundancy pay, both based on length of service. Provision of a Fair Work Information Statement: Must be provided by employers to all new employees. Superannuation contributions: Employers must make contributions to eligible employees'super funds under the super guarantee laws. These standards apply to all employees covered by the national workplace relations system. But only a select number of workplace entitlements apply to casual employees. The terms of a modern award or enterprise agreement cannot offer less than the minimum standards set out by the NES. However, a Modern Award or Enterprise Agreement is allowed to offer superior entitlements. Consequences of non-compliance Under the Fair Work Act 2009, providing the FWIS is a legal requirement for employers. Every employer must ensure the statement is provided to new employees as soon as practicable after commencement of employment. Failure to comply with these obligations can lead to penalties and workplace disputes. Updating the FWIS Employment laws and regulations in Australia are subject to change. It is essential you keep up to date with the latest legal requirements. Business owners and employers should review the FWIS periodically to ensure any legislative changes are reflected. Changes can include: Changes to the National Employment Standards Updates in Modern Awards Amendments in agreement-making or other employment legislation Regular reviews and updates help protect your business from potential compliance issues. Staying compliant also reduces the likelihood of matters escalating to Fair Work conciliation New employee checklist Preparing a new employee checklist is a great way to streamline the induction process and make sure new employees have all the information and guidance they need to transition smoothly into their new job. Besides giving new employees a copy of the Fair Work Information Statement, you should also give them a copy of your official employee handbook containing information about the employee’s job description, tasks and duties, company culture, and policies and procedures. Other important documents you should give inductees include banking, Tax File Number and superannuation details, and Workplace Health and Safety policy. Make sure the new employee has carefully reviewed all of these materials and they clearly understand the contents of each document. You can confirm this by having the new employee sign an acknowledgement form. All documents signed by the new employee must be stored in a secure place which complies with privacy laws. Know your obligations Business owners and employers in Australia have many obligations and duties. Staff management, recruitment, performance management, health and safety are just some of them. Peninsula offers tailored support and resources developed to help you meet your obligations and minimise the risk non-compliance. Call our expert team to learn how we can help you.

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WFH Policy Template for Employers

Working from home (WFH) has become the norm in Australia now. Businesses have to be flexible and adapt to changing working styles to ensure employee retention. But what are your responsibilities when an employee works from home? Do you know your health and safety obligations around WFH? How do you communicate the employee's responsibilities and duties? Peninsula has put together a detailed work from home policy template that is ideal for Australian SMEs and employers. Find essential information around provision and use of company equipment, managing remote staff, and protecting your business.