SCHADS Award Sleepover Changes: What You Need to Know Before the Rules Catch You Out

If you employ support workers in disability, home care or community services, the Fair Work Commission has just changed the rules on sleepover shifts. These changes took effect from the first full pay period on or after 1 June 2026, which means they apply now.

This is not a minor tweak. There are five changes in total, and some of them will affect your payroll, your rostering and how you document shifts. If you have not already reviewed your arrangements, now is the time.

First, a quick recap: what is a sleepover shift?

Under the Social, Community, Home Care and Disability Services Industry Award 2010 (SCHADS Award), a sleepover is when an employee is required to stay overnight at the same location as the client. They are allowed to sleep but must remain on-site and respond if needed.

Up until now, there has been a lot of ambiguity around how these shifts should be structured and paid, particularly when an employee works both before and after the sleepover period. The Fair Work Commission has now stepped in to clear things up.

What has changed?
1. A sleepover shift is one shift, not two

If an employee works before and after a sleepover, that entire arrangement must now be treated as a single shift. You cannot split it into two separate shifts. For most employers this reflects what you were already doing, but if you have been treating the pre- and post-sleepover periods as separate shifts, that approach no longer works.

2. A sleepover is not a rest break

The Award has been varied to make clear that the eight-hour sleepover period cannot be used as a rest break between shifts under clause 25.4. This was a contested area for years. It is now settled. The sleepover period sits outside the shift, but it does not act as an off-duty break either.

3. Longer sleepover shifts are now permitted (with conditions)

Employees and employers can now enter into a written agreement to extend ordinary hours on a sleepover shift to up to 12 hours total, up from the previous limit of 10. However, no more than eight ordinary hours can be worked on either side of the sleepover. So the options look like this:

• Eight hours before the sleepover and four hours after, or
• Six hours before and six hours after.

Overtime does not apply until the 12-hour mark on these extended shifts. This gives providers more rostering flexibility, but the eight-hour cap on each side must be respected.

4. Shift loadings are now calculated separately for each period of work

This is where the change may actually save some employers money. Previously, many businesses were applying the night shift loading to work performed both before and after the sleepover. Under the new rules, each period of work is assessed separately for shift loading purposes.

In practical terms, work done before the sleepover (say, 9pm to 11pm on a weeknight) will likely attract an afternoon shift allowance. Work done after the sleepover in the morning will generally not attract any shift loading at all, because it does not meet the definition of a night shift.

If you have been applying blanket night shift rates to the full arrangement, you may be overcalculating. Run your numbers.

5. Overtime for part-time and casual employees is now calculated per shift

For part-time and casual employees, overtime used to be calculated on a per-day basis. From now on, it is calculated per shift. Overtime applies once an employee works more than 10 hours in a shift (or more than 12 hours on an extended sleepover shift).

This sounds straightforward, but it can create payroll complexity depending on how your rosters are structured. Some providers may see additional overtime costs depending on their current working patterns.

What should you do now?

The changes are already in effect. Here is what to focus on:

• Check how your payroll system is calculating shift loadings and overtime for sleepover shifts
• Review your rosters to make sure you are not exceeding eight ordinary hours on either side of the sleepover
• Update any employment agreements or rosters that refer to pre- and post-sleepover periods as separate shifts
• Talk to your payroll vendor if your system needs reconfiguring
• Get written agreements in place with any employees you want to roster on extended 12-hour sleepover shifts

The bottom line

These changes resolve years of uncertainty in the sector, and that is a good thing. But clarity only helps if you actually implement things correctly from here. Providers who have been running their sleepover arrangements without much scrutiny now have a clear framework to work within and less room to get it wrong.

If you are not sure whether your current arrangements stack up, or you want someone to sense-check your payroll settings and rostering, we can help.

Need help getting your sleepover arrangements right?

HR Gurus works with disability and community care providers across Australia to make sure their award compliance is solid and their rostering actually works in the real world. Get in touch at hrgurus.com.au/contact.