SCHADS Award Level Explained – Navigating SCHADS classifications
At NGO Training Centre, we have been getting questions about SCHADS Award levels and compliance, and we understand how complex it can be to navigate SCHADS classifications and levels.
With the recent update to the SCHADS Award in July 2023, some big changes impacted many organisations. Each year, SCHADS Award level pay rates can change, so it’s essential to keep a close eye on those updates. Here’s some information to get you started in understanding SCHADS Award levels explained and what your organisation needs to know about the recent changes to SCHADS. We’ll also point you toward additional information and resources to help.
So, why is it important to understand SCHADS Award classifications?
Simply put, an “Award” is a legal document that sets the minimum pay rates and conditions for employees under that award. The Social, Community, Home Care, and Disability Services (SCHADS) industry award applies to people working in the disability sector, including Disability Support Professionals. Organisations must follow the pay rates and conditions outlined in SCHADS Award levels to ensure employees receive fair compensation. You can access the most recent SCHADS Award here: link.
Many of us have heard or been involved in the horror stories of employers not getting it right when it comes to Award Classifications, and being liable for hundreds of thousands, and sometimes millions of dollars in back pay liabilities and penalties. It’s sadly not uncommon.
The SCHADS Award is complex, with approximately 3,000 pay points and multiple allowances. It’s essential that employers understand SCHADS Award levels, categories, and allowances such as the ‘broken shift allowance’ to ensure compliance. Knowing the SCHADS Award level classifications and pay points for each role helps organisations accurately meet employee entitlements.
To get you started, let’s walk through some key information about SCHADS Award classifications and how they can be applied.
The SCHADS Award Classifications include:
An Award Level:
An Award level refers to the classification or grade assigned to a particular job or position within the industry. These SCHADS levels are often based on factors such as the complexity of the work, the level of responsibility, and the qualifications and skills required for the role.
A Pay Point:
The pay point under the SCHADS Award refers to the specific level or step within a pay scale that corresponds to an employee’s experience, qualifications, and/or length of service.
Each staff member must be assigned a SCHADS Award level and a pay point, e.g., level 3 — pay point 4 or level 7 — pay point 2.
After a year of employment, staff members can qualify for an increased pay point by demonstrating satisfactory performance and using new or improved skills. Consequently, incorporating a performance appraisal scheme is essential for adhering to SCHADS Award compliance.
It is important to get these SCHADS Award classifications as accurate as possible, and this can be done by assessing an employee’s:
- Tasks or duties and job titles
- Skills and competence
- Qualifications and training
- Amount of experience (including the number of years at a particular SCHADS classification level)
- The amount of supervision required or performed
To find the correct classification, make sure you review the definitions in full and consider all these factors together. An accurate, updated position description that reflects the staff member’s actual duties will help determine the correct SCHADS Award classification.
If you do not have a dedicated Human Resources Manager or Department, or in-house expertise, it is best to outsource this to professionals.
The Fair Work Commission offers helpful tools and information, broken down into useful steps to get you started.
Here, you can find guidance on how to read and apply classification descriptions in SCHADS Awards.
Minimum Pay Rates
Employers must pay their employees under the SCHADS Award at least the minimum pay rates and entitlements specified in the award, whether weekly or fortnightly, depending on the pay cycle.
The Fair Work website provides various tools and resources to help you calculate your wage obligations. Alternatively, you can access SCHADS pay guide summaries, which include information about pay rates, penalties, and allowances.
Summary
The NGO Training Centre wishes you all the best in navigating SCHADS Award compliance. We encourage you to stay vigilant about SCHADS Award updates and ensure that minimum entitlements for your staff are met.
Be sure to update payroll systems in line with any Modern Award changes to mitigate risks. The Fair Work Commission is a helpful resource if you have questions.
Key Takeaways
- Keep up to date with any changes to the SCHADS Award
- Maintain clear and transparent systems for determining SCHADS award levels and pay points
- Engage systems to track pay increases and additional entitlements
- Ensure that you have reliable HR support to interpret SCHADS award information
- Ask questions along the way
Written by Amanda Robinson, B.A., MMentalHealth Prac.
Amanda is a professional with over a decade of dedicated experience in the fields of Mental Health and Disability. Her extensive expertise lies in navigating the intricate landscape of the Disability Sector. She brings a unique perspective to her work, being both a person with lived experience of disability and a compassionate carer. She has a passion for advocacy, making her a staunch champion for the rights and well-being of individuals facing similar challenges.
