According to Fair Work, the NDIS award is particularly complex due to its multiple streams, classifications, and allowances.
Payroll management is a critical yet challenging task for businesses, especially in industries like disability care where the SCHADS Award governs employee pay rates and conditions. With 26 clauses to consider, the SCHADS Award is widely regarded as one of the most complex modern awards in Australia. For payroll teams, achieving flawless accuracy is non-negotiable, yet the risk of underpayment remains high due to the intricate nature of the rules.
The SCHADS Award is A Complex Framework
The SCHADS Award (Social, Community, Home Care, and Disability Services Industry Award) sets the minimum pay rates and employment conditions for workers in the disability care sector. According to Fair Work, this award is particularly complex due to its multiple streams, classifications, and allowances.
Common Causes of Underpayment in Disability Care
Underpayment issues often arise from seemingly minor errors that accumulate over time. Some of the most frequent causes include:
- Incorrect Stream Determination: Misclassifying employees under the wrong award stream, leading to incorrect pay rates and entitlements.
- Employee Misclassification: Incorrectly identifying workers as full-time, part-time, or casual, resulting in errors in leave and overtime entitlements.
- Day Workers vs. Shift Workers: Failing to distinguish between day workers and shift workers, causing incorrect shift allowances or penalties.
- Penalty Rates & Overtime: Not applying the correct rates for overtime, late shifts, or public holidays, leading to underpayments.
- Travel Allowances: Incorrectly calculating travel reimbursements, resulting in underpayments or disputes over travel expenses.
- Broken Shifts & 24-Hour Care: Failing to manage shifts with breaks or continuous care requirements, misapplying pay rates, or rest entitlements.
- Remote & On-Call Work: Inaccurately compensating employees for being available outside standard hours, violating on-call or standby pay rules.
Fair Work has identified the disability care sector as a priority area for compliance, emphasising the importance of getting payroll right. Underpayments can result in hefty penalties, reputational damage, and recently serious legal actions.
The Role of Data and Systems in Payroll Accuracy
Accurate payroll calculations start with robust data collection. Every decision must be backed by evidence, such as proof of correct award conditions, properly recorded breaks, and accurate allowance payments. Manual processes, however, often fall short. Tight deadlines and reliance on manual reviews leave little room for error detection, increasing the risk of underpayments.
To mitigate these risks, businesses need strong systems and processes in place. This includes:
- Automated compliance checks: Reducing reliance on manual reviews and minimising human error.
- Transparent tracking: Documenting decisions and changes to ensure accountability.
- Proactive management: Moving from reactive error-fixing to proactive compliance strategies.
How Workstem Simplifies Payroll & Compliance
Workstem streamlines payroll and workforce management with:
- Employee Self-Onboarding: A paperless process where employees enter their details directly, ensuring accurate records.
- Smart Workforce Rostering: Easily manage shifts, locations, and adjustments via the HR mobile app while staying compliant with modern awards.
- Accurate Attendance Tracking: GPS, QR codes, and facial recognition ensure real-time shift tracking and seamless payroll integration.
- Compliant Award Interpretation: Automate SCHADS award calculations, customise attendance rules, and generate tax-compliant payslips.
- ATO-Accredited STP2 Reporting: Submit wages, taxes, and superannuation directly to the ATO with a few clicks.
With Workstem, payroll teams can confidently navigate the complexities of the SCHADS Award, ensuring fair pay while reducing administrative burden.
The Cost of Getting It Wrong
The consequences of underpayment extend beyond financial penalties. Employees in the disability care sector often work in demanding roles, and fair compensation is essential for their well-being. For businesses, non-compliance can lead to audits, fines, and damage to their reputation. As Fair Work continues to crack down on underpayments, the cost of getting it wrong is only increasing.
To Wrap Up
In an industry where there’s no margin for error, Workstem empowers your payroll team to operate with precision and confidence. You can simplify complex awards like SCHADS with automated pay calculations, custom attendance rules, and AI-driven data collection. Ensure compliance across 122 awards and 34 EBAs while generating tax-compliant payslips effortlessly.
Ready to transform your payroll processes? Discover how we can help you stay in compliance and keep your peace of mind.
Read more:
Streamline SCHADS Award Compliance with HR Software
SCHADS Overtime Tracking: A Quick Guide
SCHADS Rostering for Part-Time and Casual Workers
A Look into Payroll Processing for SCHADS Award
What Can We Learn from Businesses : SCHADS Award 2024 Compliance
