Navigating SCHADS Award Classifications
At NGO Training Centre, we have been getting questions about the SCHADS Award and compliance, and we understand how complex it can be to try and navigate through these changing conditions.
There was an update to the SCHADS award in July 2023 which meant some big changes for some organisations. Each year, rates of pay can change so keep a close eye out for those updates. Here’s some information to get you started in understanding Awards and what you need to know as an organisation about changes to the SCHADs. We’ll also point you in the direction of further information and resources to help.
So why do we need to know about awards?
It’s simple really, an “Award” is a legal document that sets down the minimum pay rates and conditions for people employed 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 adhere to the pay and conditions outlined in the SCHADs award to ensure employees are receiving the right pay and conditions. You can access the most recent SCHADs Award here: https://shorturl.at/EGQT1
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, and there are approximately 3,000 pay points under it, along with various allowances. It is crucial that as an employer, you have an understanding of the SCHADs award categories, pay points and additional allowances your employees are entitled to such as ‘broken shift allowance’. Know what the categories for different pay points are for each role.
To get you started let’s walk through some important information about 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 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 an 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 showcasing satisfactory performance and using new or improved skills. Consequently, the incorporation of a performance appraisal scheme is essential for adhering to award compliance.
It is important to get these Award classifications as accurate as possible, and this can be done by determining an employee’s:
- tasks or duties and job titles
- skills and competence
- qualifications and training
- amount of experience (this can include the number of years at a particular classification level)
- the amount of supervision required or performed
To find the right classification, make sure you read the definitions in full and consider all the factors together. These are important for so many reasons, and an accurate and updated position description considering the staff member’s actual duties in each role will help to determine the correct 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 in this area.
The Fair Work Commission has some great tools and information which is broken down into helpful steps to get you started:
https://www.fairwork.gov.au/employment-conditions/awards/award-classifications
Here, you can find out how to read and apply classification descriptions in awards.
Minimum Pay Rates
Employers must pay their employees under the SCHADS Award at least the pay rates and entitlements contained in the award weekly or fortnightly, depending on their pay cycle.
The Fair Work website has various tools and resources to help you calculate your wage obligations. Alternatively, you can access the pay guide summaries, which contain information about pay rates, penalties and allowances.
Summary
NGO Training Centre wish you all the best in navigating the SCHADS Award, and we remind you to please stay vigilant on SCHADS Award compliance, keep track of any updates to the award and ensure minimum entitlements for your staff.
Make sure that you update payroll systems to align with Modern Award changes to mitigate any risks. You can always reach out to Fairwork if you have any questions, they are very helpful!
Here are some key takeaways
- Keep up to date with any changes to the SCHADS Award
- Maintain clear and transparent systems for determining award levels and pay points
- Engage systems to track pay increases and additional entitlements
- Ensure that you have reliable HR support to interpret 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.
