Overtime management in the Social, Community, Home Care, and Disability Services (SCHADS) industry often leads to confusion, given the different working conditions and employment types. Employers need to stay compliant with modern awards, especially when it comes to overtime tracking, allowances, and ensuring fair compensation for employees.
The SCHADS Award 2024 outlines clear rules for how overtime should be calculated and paid, but keeping up with them can be a challenge. So, what are the key considerations?
What is overtime under the SCHADS Award?
Overtime refers to any hours worked beyond the normal daily or weekly limits. These limits vary depending on whether an employee is full-time, part-time, or casual, as well as the type of shift work they do.
- Full-time employees: Overtime is worked after 38 hours per week or 10 hours per day.
- Part-time employees: Any hours beyond their agreed rostered hours are considered overtime.
- Casual employees: Overtime applies once they exceed the daily or weekly maximum hours set by the award.
Common problems faced
As mentioned above, managing overtime presents several challenges. Let’s take a look at a few of them:
- Complex Rosters: Employees in the SCHADS sector often work irregular hours, making it hard to track overtime manually. Shifts can vary, and many workers perform overnight duties or split shifts, adding to the complexity.
- Different Overtime Rates: SCHADS Award 2024 specifies varying overtime rates:
- 150% of the base rate for the first two hours of overtime.
- 200% for any additional overtime worked thereafter.
- Allowance Entitlements: Certain allowances apply to workers who perform overtime, such as shift loadings or sleepover allowances. These must be recorded and calculated accurately to avoid compliance risks.
Benefits of automating overtime tracking
Automating the process of tracking overtime offers significant advantages, especially for industries like SCHADS. Here are a few key benefits:
- Automated calculation of overtime rates based on specific hours worked.
- Real-time tracking of employee shifts and schedules.
- Alerts for when employees are nearing overtime thresholds.
How to stay compliant?
To ensure compliance with the SCHADS Award 2024, you should:
- Track hours carefully: Make sure employees’ hours are accurately logged, and any overtime is calculated correctly.
- Pay the correct rates: Always apply the appropriate overtime and allowance rates as per the award.
- Stay updated: Regularly review any changes to the SCHADS Award to ensure your payroll practices are up to date.
To Wrap Up
Managing overtime in the SCHADS sector is critical for both fair compensation and compliance. Automating overtime tracking through a modern payroll system can simplify this process, reducing errors and helping your business meet the requirements of the SCHADS Award 2024.
By understanding how overtime, allowances, and compliance fit together, you can now manage your workforce more effectively and ensure they remain compliant with modern awards.
How Does Workstem Help?
Simplify your payroll process and ensure accurate pay rates with Workstem’s automated payroll system. Our pre-built modern award interpretation software covers 122+ awards and 34 EBAs, and keeps you up-to-date with penalty rates and other award entitlements.
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Read More:
Updated SCHADS Award Pay Rates Guide
Understanding Pay Point Progression in the SCHADS Award
Streamline SCHADS Award Compliance with HR Software
