SCHADS Award Sleepover Changes: What NDIS Providers Need to Know from 1 June 2026
The Fair Work Commission’s changes to sleepover provisions under the SCHADS Award came into effect on 1 June 2026 and may have significant implications for NDIS providers, particularly in relation to rostering, payroll calculations and compliance obligations.
The Fair Work Commission’s changes to sleepover provisions under the SCHADS Award came into effect on 1 June 2026 and may have significant implications for NDIS providers, particularly in relation to rostering, payroll calculations and compliance obligations.
While sleepover shifts remain a common feature of disability support services, the way they are treated under the Award has now changed. Providers should review their current practices to ensure they remain compliant and understand the impact these changes may have on labour costs.
The most significant change is that a sleepover is no longer considered a break between two separate shifts.
Instead, work performed before and after a sleepover is now treated as part of a single continuous shift, with the sleepover period sitting within that shift.
This change effectively reverses the earlier interpretation. Joint decision and creates a new framework for managing sleepover arrangements.
- Up to 12 hours of active work in a single shift (excluding sleepover time);
- No more than 8 ordinary hours worked before the sleepover; and
- No more than 8 ordinary hours worked after the sleepover.
For example:
For many providers, this creates greater flexibility in workforce planning and service delivery. However, it also requires careful consideration of payroll and compliance obligations.
One of the areas likely to cause the greatest confusion is the application of shift penalties and overtime.
- Hours worked in the evening that extend beyond 8:00 pm may attract the applicable afternoon shift loading.
- Hours worked after the sleepover that commence after 6:00 am may not attract any shift loading.
This means payroll systems must be configured correctly to ensure penalties are calculated accurately.
The sleepover allowance remains payable in addition to ordinary wages and continues to apply under the Award.
- An employee is required to perform work during the sleepover period, such as responding to participant needs; or
- The total active work exceeds the agreed limits under the Award provisions.
Providers should carefully review their payroll settings and rostering practices to ensure overtime is identified and paid correctly.
Examine all existing sleepover arrangements and identify situations where employees are working before and after a sleepover.
Consider whether the combined shift structure could create overtime obligations under the new provisions.
Where organisations intend to utilise the new 12-hour arrangement, written agreements should be reviewed and updated to reflect the Award requirements.
- Recognise the sleepover arrangement as a continuous shift for hours calculations;
- Apply shift penalties correctly to active work periods;
- Calculate sleepover allowances appropriately; and
- Identify overtime where required.
Those responsible for workforce planning should understand the changes and how they impact roster design and labour costs.
There is no requirement for backpay arising from these changes.
The changes to sleepover provisions may appear straightforward, however many providers will need to review rostering arrangements, employment agreements and payroll settings to ensure compliance.
Taking proactive steps now can help minimise payroll errors, employee disputes and compliance risks in the future.
- Draft employee communications explaining the changes;
- Payroll and rostering implementation checklists;
- Guidance materials for managers and coordinators; and
- Practical support for reviewing compliance with the SCHADS Award.