The Fair Work Commission (FWC) has released a decision on Tranche 2 substantive claims raised through the review of the SCHADS Award. The most recent FWC review took place in June 2021, and another SCHADS review will be conducted later in the year. This blog outlines what changes have recently come into effect, and which ones are provisional (under review) and are not yet in place.
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.
To determine pay for casuals, the hourly pay is usually 1/38 of the weekly pay plus 25% casual loading [see cl 10.4 of SCHADS Award].
SCHADS Award Proposed Changes Update
Last update: 25 June 2021
Currently, a date has not been set for the following proposed changes to come into effect as they are still under review, however, it is likely that this will occur later in the year.
Minimum Payment Periods
An introduction of a minimum payment period for part-time employees (and modifications for casual employees)
Social and community services employees (excl. disability.) 3hrs
All other employees (disability work; work in the crisis assistance and supported housing sector and employees in family daycare) 2hrs
2hr minimum payment to apply to each part of broken shift
Broken Shifts & Broken Shift Allowance
Definition of broken shift:
Shift having 2 separate periods with a single ‘break’ (other than a meal break)
An occasional broken shift that has more than 1 unpaid break is subject to:
Maximum of 2 ‘breaks’ in the shift
The agreement of employee, and
Broken Shift Allowance (provisional view):
1 ‘break’ - 1.7% of the standard rate per broken shift ($17.10 per broken shift)
2 ‘breaks’ - 2.5% of the standard rate ($25.15 per broken shift).
Day worker who is working outside normal hours (including part of work in broken shift) is entitled to overtime
It is proposed that accepted employees should be compensated for travel between clients
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.
Remote response work done between 6am-10pm incurs 30 minutes minimum payment
Remote response work done between 10pm-9am incurs 1hr minimum payment
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 (provisional view):
Reimbursement of reasonable costs associated with cleaning or replacement of personal clothing which has been damaged or stained during course of employee’s work
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
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
Double time pay for anything more than 2 hours
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
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.
For shift workers :
Where employee works a minimum of 8 24-hour care shifts per year OR
works more than 4 hours on a minimum of 10 weekends, they are entitled to an extra week of annual leave.
If you have further questions regarding these changes or any changes regarding Award compliance or interpretation, please contact us at Karen Ansen Consulting at firstname.lastname@example.org.