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Guide
What is the SCHADS Award?
What is SCHADS? The Social, Community, Home Care and Disability Services (SCHADS) is an Industry Award [MA000100] thst sets out standards, entitlements, and pay rates for a wide range of roles in the social and community sector. Understanding if your business is covered under the SCHADS Award is important as it ensures you are paying your employees accurately, complying with Fair Work legislation, and maintaining a safe and fair workplace for everyone. In this guide, we breakdown the SCHADS Award, focusing on the 2025 updates, pay rates across various levels, and specific considerations for different states including Victoria (Vic), Queensland (QLD), and New South Wales (NSW). The SCHADS Award is a crucial framework in the social and community services sector. It covers a range of professionals, including disability support workers, ensuring fair compensation and work conditions. The award is periodically reviewed to reflect industry changes and economic conditions. SCHADS award coverage The SCHADS award covers employers and employees who fit within the classifications of the award and are in the following sectors: Crisis assistance and supported housing Social and community services Home care Family day care scheme. The social and community sector means the provision of social and community services including: Social work Recreation work Welfare work Youth work or community development work. This sector also includes: Organisations who primarily engage in policy, advocacy, or representation on behalf of organisations carrying out such work The provision of disability services including the provision of personal care and domestic and lifestyle support to a person with a disability in a: community residential setting respite centre and day services. The home care sector means the provision of personal care, domestic assistance or home maintenance to an aged person or a person with a disability in a private residence. The crisis assistance and supported housing sector applies to organisations providing vital support during times of crisis. This includes: Emergency accommodation Supported housing. The SCHADS Award has separate streams (rules) for each of these industries, so it’s essential to determine which stream applies to your business and employees. 2025 SCHADS award update – What you need to know The 2025 update of the SCHADS Award introduces significant changes, particularly in terms of pay rates and conditions for overtime. These changes are crucial for maintaining industry standards and ensuring fair compensation for workers. The SCHADS wage increases are in two stages Stage 1 Stage 2 If the percentage increase for a specific classification level exceeds 3%, half of the total increase was implemented on 1 January 2025 The remaining percentage takes effect on 1 October 2025 If the percentage increase for a specific classification level exceeds 3%, but half of the total increase amounts to less than 3%, a 3% increase was applied on 1 January 2025 The remaining percentage will be implemented on 1 October 2025 If the percentage increase for a specific classification level is less than 3%, the full increase was applied on 1 January 2025 No additional increase will occur on 1 October 2025 SCHADS award pay rates by level The SCHADS Award categorises employees into different levels based on their roles, responsibilities, and qualifications. Here's a breakdown of the pay rates for each level: Level 2 to 8 Pay Rates: Level 2: Generally, for workers with some experience in the sector but not in a supervisory role. Level 3 to 5: These levels include more experienced workers, with Level 5 often involving supervisory responsibilities. Level 6, 7 and 8: These are typically for senior roles that require significant experience and qualifications, with corresponding higher pay rates. SCHADS overtime pay rates The SCHADS Award outlines specific provisions for overtime work, ensuring that employees are fairly compensated for hours worked beyond their normal rostered hours. SCHADS award salary details Salaries under the SCHADS Award vary based on the level, experience, and qualifications of the employee, as well as the specific nature of their role. Disability support workers under SCHADS Disability support workers are covered under the SCHADS Award, with their pay rates determined by the level of their role and responsibilities. SCHADS award in different states Victoria, QLD, and NSW: While the SCHADS Award provides a national framework, there can be state-specific nuances. Employers and employees in Victoria, Queensland, and New South Wales need to be aware of any state-specific conditions or allowances that may apply. Minimum wage 2025 Each year, the Fair Work Commission reviews both the National Minimum Wage and the minimum pay rates under awards (Annual wage review). Most changes begin on the first full pay period on or after 1 July. The National Minimum Wage applies to employees not covered by an award or registered agreement. This is the minimum pay rate provided by the Fair Work Act 2009. As of 1 July 2025, the National Minimum Wage is $24.95 per hour or $948.00 per week. Some awards contain introductory pay rates for new employees in their industry. Major updates in the SCHADS Award Clauses 1. Pay Rate Adjustments: One of the most significant updates in the SCHADS Award is the adjustment of pay rates across various levels. This includes increased base rates for levels 2 through 7, reflecting the growing recognition of the skills and responsibilities in these roles. 2. Overtime and Penalty Rates: Changes to overtime and penalty rates have been implemented, ensuring fair compensation for employees working beyond their standard hours. This includes clearer definitions of overtime work and the corresponding rates applicable. 3. Leave Entitlements: The latest update includes revisions to leave entitlements, encompassing annual leave, personal/carer’s leave, and parental leave. These changes aim to provide greater support and flexibility to employees. 4. Work Arrangements: Updates to work arrangement clauses have been made, offering more clarity on part-time and casual work definitions. This also includes provisions for flexible work arrangements, reflecting the changing nature of work in the sector. 5. Disability Support Worker Provisions: Specific updates related to disability support workers have been made, acknowledging the unique challenges and requirements of these roles. This includes adjustments to pay rates and work conditions tailored to this group. 6. State-Specific Adjustments: The SCHADS Award includes state-specific changes, particularly for Victoria, Queensland, and New South Wales. These adjustments consider the regional variations in the industry, ensuring the award remains relevant and applicable across different states. Implications of the SCHADS changes The updates to the SCHADS Award clauses are not just administrative adjustments; they have real-world implications for the daily operations of organizations within the social, community, home care, and disability services sectors. Employers need to carefully review these changes to ensure that their business practices are aligned with the latest standards, while employees should be aware of their rights and entitlements under the updated award. Understanding and implementing the SCHADS Award is key to supporting a fair and equitable work environment in the social and community services sector. As the industry continues to grow and evolve, staying informed and compliant with these rates and conditions is crucial for the success and sustainability of organizations within this sector. Get expert advice for your SCHADS business Peninsula has worked with several businesses in Australia who operate in the SCHADS sector. We have created factsheets, resources, tools, guides, and software for SCHADS businesses in Australia. We understand the challenges affecting your business and know small businesses need hr support and guidance for complicated awards and pay rates. Whether you’re in Victoria, QLD, NSW, or any other part of Australia, our team of experts can provide you with HR advice services and solutions you need to ensure compliance and best practices in your workplace. Contact us to get all your questions answered. 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.
Guide
What is the Probationary Employment Period?
What is the probationary period in Australia? A probationary period is a contractual trial period at the start of employment that allows an employer to assess whether a new employee is suitable for the role. While probation itself is not defined in the Fair Work Act, employees gain access to unfair dismissal protections once they meet the minimum employment period, six months for large businesses and 12 months for small businesses. Generally, an employer decides the length of the probationary period in the employment agreement, but an award or registered agreement may state a specific time period. Employers should also understand how termination in probation period works, as the rules for ending employment during probation differ from standard dismissal processes. How Long Is the Probationary Period? Most probation periods in Australia range from three to six months, depending on the role and the terms of the employment contract. Small businesses often use a six‑month probation period because employees only gain unfair dismissal protections after 12 months of service. Larger employers commonly use three months, as employees gain unfair dismissal protections after six months. Can You Extend the Probationary Period? Employers can extend probation if the employment contract or award allows it. However, extending probation beyond the minimum employment period may not prevent an employee from accessing unfair dismissal protections. Extensions should be communicated in writing and supported by clear performance feedback. Minimum Employment Period and Fair Work Act Requirements The Fair Work Act 2009 (the Act) does not use the term ‘Probation.’ It's a contractual term and there is generally no law covering what is and isn’t a “probation period”. Probation refers to a trial period at the start of full-time or part-time employment that is generally outlined in the employment contract. The Act refers to a Minimum Employment Period, which is determined by how long the employee has worked for the business, and the size of the company. If the employee has met the minimum employment period, they will have access to unfair dismissal protections if their employment ends. How long is a probation period in Australia? For a small business (fewer than 15 employees), this is 12 months. Otherwise it is six months. Peninsula recommends small business employers set a probationary period of 6 months initially - as the employee gains access to unfair dismissal at 12 months. Additionally, Peninsula recommends a 3 month probationary period for large employers, which employees gain access to unfair dismissal at 6 months. If the employer is still unsure, they can extend or edit the length of the probationary period - however it's pointless to set it longer than the minimum employment period that applies to the specific employee. During the minimum engagement period, an employer may decide not to continue the employment relationship, provided they give written notice in line with the National Employment Standards (NES), industrial instrument, or contract. Employee entitlements on probation A probationary period is not a separate period of employment. Employees on probation receive the same entitlements as full-time and part-time employees. An employee may be able to initiate a general protection claim regardless of the length of their employment if the dismissal is due to discrimination based on race, age, gender, and other such attributes, or because the employee exercised a workplace right. For this reason, it's a good idea to seek formal advice from an employment relations professional or legal practitioner before terminating an employee. Performance management during probation During the probation period, you may consider holding regular meetings with the employee to review their performance and conduct. It also provides an opportunity to address any problems or raise concerns on either side. If the employee knows what is expected of them, it gives them the best chance of passing probation successfully. Extending the probationary period If you are unsure whether a new employee is suitable for the job, but you are not ready to dismiss them, you may want to extend their probation period. This can be done by agreement between you and the employee, or if stated in the terms of the employment agreement. However, you can only extend the probationary period by whatever time is stated in the contract, depending on how the clause in the contract is worded, e.g. it may state an ‘initial period of 6 months’ and ‘subject to change’ etc. For example, if you put an employee on probation for six months and the agreement allows you extend the period by an extra three months, then you would be allowed to do so under those conditions. Failing the probationary period If an employee does not pass their probation, they are entitled to receive written notice of their employment ending. They must be paid any accrued unused annual leave hours as part of their final pay. If the probationary period is less than six months, or 12 months if you are a small business with fewer than 15 employees at the time of dismissal, the employee will not be able to succeed in the event of lodging an unfair dismissal claim. Unfair dismissal claims If you choose to dismiss an employee on an extended probation period, and that employee has worked long enough to surpass the minimum employment period of six months (12 months for small businesses) they will be entitled to make an unfair dismissal claim against your business if the circumstances warrant it. A business is classified as a small business, depending on the number of employees employed at the time of the dismissal, which includes: The employee and any other employees being dismissed at that time. Any regular and systematic casual employees employed by the business at the time of the dismissal (so not all casual employees). Any employees of associated entities, including any based overseas. So, in some cases, choosing to extend the probationary period of an employee may serve no purpose, as the employee will have surpassed the minimum employment period and will have access to an unfair dismissal claim. Notice and Resignation During the Probation Period When an employee on probation resigns, they should give notice of their intention to leave, because they have the same responsibilities as a full-time or part-time employee. The length of the notice period will depend on the terms of their employment agreement or the relevant award or registered agreement. The employer should pay out any wages owing, unused annual leave, and notice (if applicable) as part of the employee’s final pay. What happens at the end of the probationary period? Before the probationary period ends, you should meet with the employee and inform them whether they have passed probation. If they are unsuccessful, you can extend their probationary period if the contract, award, or registered agreement allows it, or choose to end their employment. If you are ending their employment, it is best practice to meet with the employee to provide feedback about their performance or conduct and explain why the probation period was unsuccessful. Under the National Employment Standards set out in the Fair Work Act 2009, you need to give an employee written notice to end their employment. The written notice should specify the period of notice given (or payment instead of notice), and the date the employment will end. Always confirm the outcome of the meeting in writing to the employee. Whether they are successful or unsuccessful and whether you are extending the probation or terminating their employment. Keep a written record of the discussion during the meeting. Boost your staff management with Peninsula Being an employer in Australia means keeping up with complex legislation, awards, pay rates, and intense recruitment and hiring processes. Peninsula has a team of expert advisors that can handle all your tricky questions, offer support, and provide documentation for everything from hiring, onboarding, and probation, to pay rates, management, and dismissal. 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.