Broken Shift Allowance under the SCHADS Award

If I work a shift with multiple breaks, am I entitled to an additional payment under the SCHADS Award?

Yes, you are entitled to an additional payment for working a broken shift under the SCHADS Award. 

The additional payment is referred to as a shiftwork allowance and is paid at a rate of 20% of your base rate of pay.

What is the broken shift rule under the SCHADS Award?

The broken shift rule under the SCHADS Award states that an employee must be paid an additional amount of 20% of the base rate of pay when they work shifts that are broken up during the day. 

This is applicable to shifts that are broken up into more than one period of work, with more than one break in between. The additional amount is payable for each shift that is broken up, regardless of the duration of the break.

Why is the broken shift rule difficult to manage for employers under the SCHADS Award?

The broken shift rule under the SCHADS Award can be difficult to manage for employers as it requires them to keep detailed records of how long each shift is, how many breaks are taken and how long each break lasts. 

This can be especially challenging for employers with large staff numbers and multiple shifts. Additionally, the additional payment must be paid to all employees who work broken shifts, regardless of their level of experience or other factors, making it difficult to budget for.

How can I manage broken shifts better?

To avoid any errors, employers should ensure that they maintain detailed records of their employees’ shifts and that they are aware of the broken shift rules. 

Employers should also ensure that their employees are clocking in and out at the beginning and end of their shifts, as this will help employers to accurately track the duration of each shift. 

Additionally, employers should use timesheet software like Fairtime that is designed specifically for the SCHADS Award, as this will help to accurately calculate and manage all Modern Award rules.

What happens if I ignore the SCHADS Award for my business?

If you ignore the SCHADS Award and breach workplace laws, you may be liable for penalties under the Fair Work Act 2009. This may include fines and backpay, depending on the severity of the breach.

Additionally, you may be required to rectify the breach and/or enter into an agreement with the relevant employee/s or union representative/s.

Breaching workplace laws can also have a negative impact on your reputation and could result in lost business.

Not sure where to start?

We know that the SCHADS Award can be a minefield to navigate.

At Fairtime, we can give you answers in plain english so you can get to where you need to go. Ask a question below and we will get back to you right away!