As noted in our earlier blog, the Fair Work Commission (FWC) released a decision on
Tranche 2 substantive claims were raised through the review of the SCHADS Award in June 2021.
Since then, there has been a review undertaken in August and October, with some changes from the October decision being reflected in the SCHADS awards as of June 2022. There will be another decision in relation to SCHADS as submissions closed on 12th of November 2021.
SCHADS Award New Changes
Following the Annual Wage Review 2021, the FWC announced a 2.5% increase to the
national minimum wage and all Award wages. The increase to Award wages is happening in 3 stages, commencing from 1 July 2021. The FWC has also issued decisions to change some terms and conditions in several awards. See here
To determine pay for casuals, the hourly pay is usually 1/38 of the weekly pay plus 25% casual loading [see clause 10.4 of SCHADS Award].
SCHADS Award Proposed Changes Update
Last update: 18 October 2021
Currently, a date has been set for some of the following proposed changes to come into effect.
Minimum Payment Periods
An introduction of a minimum payment period for part-time employees and casual
employees) to be paid. These minimum payment periods will be transitional from 1 February 2022 and come into effect from 1 July 2022.
3hrs - Social and community services employees (excl. disability.)
2hrs - All other employees covered under SCHADS
2hrs minimum payment to apply to each part of a broken shift
Also, a minimum hourly rate is to be included (as minimum weekly pay divided by 38).
Broken Shifts and Broken Shift Allowance
It is noted that Broken Shifts are only allowed to employees that undertake disability services and home care. The award defines ‘broken shift’ as either:
A shift having 2 separate periods with a single ‘break’ (other than a meal
break)
A shift of 3 separate periods of work with 2 unpaid ‘breaks’ (other than a meal
break). This is subject to:
The agreement of employee, and
Additional payment
Broken Shift Allowance
1 ‘break’ - 1.7% of the standard rate per broken shift ($17.10 per broken shift)
2 ‘breaks’ - 2.25% of the standard rate ($23.20 per broken shift).
Day worker who is working outside normal hours (including part of work in broken shift) is entitled to overtime
Travel Time
It is proposed that accepted employees should be compensated for travel between clients
Roster Changes
It is proposed that there is merit in allowing the employer and employee to
mutually agree on variation to the roster, where the variation is proposed by
the employee to agree to swap shifts with another worker
Remote Response / Recall to Work Overtime
It has been agreed by both employer groups and unions that there needs to be a provision
addressing work being performed by employees outside their usual working hours and
location where they are based. This includes:
Responding to calls, messages and emails.
Should include a mechanism for ensuring time spent working remotely is recorded and communicated to the employer.
Payments for Remote work:
Remote response work done between 6am-10pm - 15 minutes minimum payment
Remote response work done between 10pm-9am - 30 minutes minimum payment
Remote response work where not on call - 1 hour minimum payment
Remote work involving participating in staff meetings/training - 1 hour minimum payment
Rates for Remote Work
The only circumstances where remote work is not paid at the employee’s minimum hourly
rate is:
Where it is performed outside of 6am-8pm
Permanent employees will be entitled to 150% of their minimum hourly rate for the first 2 hours and 200% afterwards
Casual employees will be entitled to 175% of their minimum hourly rate for the first 2 hours and 225% afterwards
Where it is in excess of 38 hours a week or 76 hours a fortnight paid overtime rates
Where remote work is in excess of 10 hours a day
Permanent employees will be entitled to 150% of their minimum hourly rate for the first 2 hours and 200% afterwards
Casual employees will be entitled to 175% of their minimum hourly rate for the first 2 hours and 225% afterwards
Remote work on weekends to be paid at penalty rates.
On-Call Allowance
Where an employee is required to be on call by the employer (that is being available to be on duty at the employer/client’s premises AND/OR remote work), they will be paid an allowance of:
2% of standard rate ($20.63) for any part of or a 24 hour period in Monday-Friday time frame for completing ‘ordinary duties’
3.96% of standard rate ($40.84) for any part of or a 24 hour period on Saturday-Sunday or on a public holiday
Client Cancellation (provisional view)
Cancellation of a shift with a minimum 12 hours’ notice allows for a make-up
shift within 6 weeks of cancelled shift
Clothing and Equipment
It has been found that employees are entitled to reimbursement of reasonable costs associated with cleaning or replacement of personal clothing which has been damaged or stained during the course of employee’s work
Notify their employer of the ‘soiling’ as soon as possible AND if requested provide evidence of ‘soiling’ and/or how it happened, AND;
Comply with reasonable requirements of employer to wear PPE that is provided or paid for by employer, AND;
Damage or ‘soiling of employees clothing was not caused through an employee’s negligent conduct.
Also, employees are to be paid an allowance of 32 cents per shift where their personal clothing has been ‘soiled’ during course of employee’s work. For this to happen, they must:
Notify their employer of the ‘soiling’ as soon as possible AND if requested provide evidence of ‘soiling’ and/or how it happened, AND;
Comply with reasonable requirements of employer to wear PPE that is provided or paid for by employer
It is noted that such allowances and reimbursements are not to occur if the employee has been provided with a work uniform.
Overtime for Part-Time Employees
Establishment of a mechanism where employees who regularly work extra hours can request an annual review of their guaranteed hours, in which an employer cannot refuse
24 Hour Care
This provision only applies to Home Care employees. It is noted that:
The employer can only require an employee to work a 24 hour care shift if the employee agrees to work the shift
If an employee is required to perform more than 8 hours work in a 24 hour period, they are entitled to overtime at:
1.5 times pay for first 2 hours (except on Sundays where they will be entitled to double-time pay and public holidays being 2.5 times normal pay)
Double time pay for anything more than 2 hours (except on Public holidays where they will be entitled to 2.5 times normal pay
An employee is guaranteed an opportunity:
to sleep for a continuous 8 hours and to be provided:
a separate room with a bed and clean linen
use of appropriate facilities (not limited to food preparation areas where existing)
accommodation to be free of rent/board for each night the employee sleeps over
Sleepover allowance
Payment for 8 hours of work at 155% of the appropriate rate per 24 hours
Employees can refuse to work more than 8 hours’ worth of work in 24-hour care where additional hours are unreasonable.
Shift Workers and Annual Leave
Shift workers are entitled to an additional week of an annual leave if:
they work a minimum of 8 24-hour care shifts per year OR
they work more than 4 hours on a minimum of 10 weekends,
If you have further questions regarding these changes or any changes regarding Award compliance or interpretation, please contact us at Karen Ansen Consulting at enquiries@karenansen.com.