Care sector employers operate in a complex workplace environment. From disability support and aged care to community health and allied health services, organisations must balance quality service delivery with workforce pressures, changing employment obligations and tight funding arrangements.
Getting workplace relations and payroll compliance right helps protect employees, reduce organisational risk and support sustainable services.
Workplace Plus provides practical HR, workplace relations and payroll compliance support to help care sector employers navigate these responsibilities with confidence.
The unique HR challenges facing care sector employers
Payroll compliance is a particular challenge for care sector employers, where complex award provisions and varied working arrangements can make it difficult to calculate employee entitlements correctly.
Awards commonly relevant to care sector employers include:
Managing workforce shortages, recruitment and retention.
Supporting managers to handle performance concerns and employee conflict.
Responding to complaints and maintaining a safe, respectful workplace.
Managing psychosocial risks, including excessive workloads, poor support and workplace conflict.
Keeping workplace practices compliant as employment obligations change.
Employers need to understand how the Fair Work Act 2009, National Employment Standards, applicable awards or enterprise agreements, and relevant workplace health and safety and anti-discrimination laws apply to their organisation.
The right approach depends on the organisation’s services, workforce and employment arrangements. Practical HR support can help employers address issues early and reduce the risk of workplace problems escalating.
Payroll compliance and modern award obligations
Payroll compliance involves more than paying employees the correct hourly rate. Employers need to apply the right industrial instrument and classification, interpret entitlements correctly, maintain accurate records and ensure payroll systems reflect the rules that apply to each employee.
Awards commonly relevant to care sector employers include:
Social, Community, Home Care and Disability Services Industry Award 2010 (SCHADS Award) [MA000100]
Health Professionals and Support Services Award 2020 [MA000027]
Aged Care Award 2010, [MA000018]
Nurses Award 2020 [MA000034]
Aboriginal and Torres Strait Islander Health Workers and Practitioners and Aboriginal Community Controlled Health Services Award 2020 [MA000115]
The applicable award depends on the employer’s operations and the employee’s role. Some employees may instead be covered by an enterprise agreement or another industrial instrument.
Common areas to review include:
Award coverage, classifications and pay-point progression.
Ordinary hours, overtime, penalty rates and shift loadings.
Allowances, including travel and vehicle allowances.
Broken shifts, sleepovers and minimum engagement requirements.
Part-time employment agreements and agreed hours.
Leave entitlements, record keeping and payroll processes.
Payroll errors can accumulate over time, particularly where rosters, classifications or employment arrangements change. Regular reviews can help identify issues early, correct errors and improve confidence in payroll processes.
Payroll changes care sector employers need to monitor
Several recent and upcoming changes make regular compliance checks particularly important.
Payday Super
Since 1 July 2026, employers have been required to pay superannuation guarantee contributions alongside wages rather than quarterly. Contributions must generally reach employees’ super funds within seven business days of payday. Employers should check that payroll, reporting and payment processes meet the new requirements.
Health Professionals and Support Services Award changes
Minimum rates for certain health professional classifications under the Health Professionals and Support Services Award changed from 1 October 2026 as part of the Fair Work Commission’s gender-based undervaluation review. Employers should check the updated rates and confirm whether the changes affect their employees.
Upcoming SCHADS Award changes
From 1 December 2026, eligible home care disability employees covered by the SCHADS Award are scheduled to receive an initial increase of up to 15% to minimum award rates. Further changes, including a new classification structure, are scheduled to begin from 1 October 2027.
Employers should identify affected employees, review their classifications and payroll settings, and plan for the changes before they take effect. The increase does not apply uniformly to every employee covered by the SCHADS Award.
Temporary vehicle allowance increase
From the first full pay period starting on or after 1 September 2026, the vehicle allowance under the SCHADS and Aged Care Awards increased to $1.05 per kilometre for a six-month period ending 28 February 2027. Employers paying this allowance should confirm that the updated rate is being applied where required.
Government funding to support care-sector pay increases
On 13 October 2026, the Australian Government announced $630 million in funding to support pay increases for more than 460,000 health, disability and community services workers following Fair Work Commission findings about the historical undervaluation of work in these sectors.
Eligible government-funded organisations may receive support through relevant funding programs. Employers should check whether their organisation and funding arrangements are covered rather than assume the funding applies automatically.
These changes are a useful prompt to review award coverage, employee classifications, pay rates, allowances, superannuation processes and payroll systems.
SCHADS Award compliance remains a key focus
The SCHADS Award is particularly complex for organisations delivering disability support, community services and home care. Its rules can interact with rosters, client needs, travel, sleepovers and varying work patterns.
Common areas of risk include incorrect classifications, missed pay-point progression, incorrect overtime and penalty calculations, and errors involving broken shifts, allowances or sleepover arrangements.
Changes to sleepover provisions took effect from the first full pay period starting on or after 1 June 2026. Employers should check that their rostering and payroll practices reflect the current requirements, including the treatment of ordinary hours, rest breaks and applicable shift allowances.
With further SCHADS changes scheduled for December 2026 and October 2027, employers should avoid relying on outdated pay guides or payroll settings.
Fair Work compliance and enforcement risks are increasing
Employers that underpay employees or fail to meet workplace obligations may face back-pay liabilities, penalties, compliance notices and reputational damage. In serious cases, enforcement action can have a significant financial and operational impact.
The Fair Work Ombudsman is also examining compliance across the disability support services sector through its Disability Support Services Sector Inquiry. The inquiry is exploring where non-compliance occurs, what drives it and how organisations can build and sustain a culture of compliance. Its engagement with employers, HR professionals, managers and payroll staff highlights the practical challenges involved in meeting workplace relations obligations.
Care sector organisations should pay particular attention to whether their payroll systems apply the correct award or enterprise agreement, whether employees are classified correctly, and whether changes to rates and entitlements have been implemented on time.
A payroll review can help identify discrepancies before they become larger problems. Where an issue is found, employers should assess its scope, take appropriate steps to rectify it and consider what changes are needed to prevent it recurring.
Read more about enforceable undertakings and workplace compliance >
Building compliant and healthy workplaces beyond payroll
Payroll is only one part of an organisation’s workplace obligations. Employers also need practical ways to manage workplace conflict, employee complaints, performance concerns, investigations and risks to workers’ health and safety.
Psychosocial hazards can arise from how work is designed, managed and supported. Examples include excessive workloads, poor support, bullying and harassment, unresolved conflict, unclear roles and poorly managed organisational change.
Under applicable state and territory workplace health and safety legislation, employers must manage risks to workers’ health and safety, including psychosocial risks.
A proactive approach may involve reviewing workplace systems, clarifying responsibilities, supporting managers, responding appropriately to concerns and addressing issues before they escalate.
Practical HR and workplace relations support for care sector employers
Care sector employers need support that recognises the realities of their operations, workforce and funding arrangements. Workplace Plus works with organisations to address workplace issues and build more consistent, compliant practices.
Our services include:
Payroll compliance reviews: Assess award coverage, classifications, pay rates, allowances and other employment entitlements.
Everyday HR support: Get practical advice on employment contracts, workplace policies, performance management and employee relations.
Workplace investigations and conflict resolution: Address complaints and workplace concerns through independent workplace investigations, mediation and conflict resolution.
Training and coaching: Build managers’ confidence and capability in workplace relations, award obligations and handling workplace issues.
Workplace culture and risk support: Review workplace practices and help organisations address conflict, psychosocial hazards and other people-related risks.
We also provide SCHADS Award training to help employers and managers better understand their obligations and apply the award in practice.
Why proactive compliance is important
Employment obligations continue to change, and payroll or workplace issues can become more difficult to resolve the longer they go unchecked.
Regular reviews, accurate records and clear processes help employers identify risks early, respond consistently and make informed decisions. They can also give leaders greater confidence that workplace obligations are being managed alongside service delivery and financial pressures.
For care sector organisations, a practical compliance approach supports both the people delivering services and the organisations responsible for employing them.
Frequently asked questions
What workplace laws apply to care sector employers?
Care sector employers may need to comply with the Fair Work Act 2009, National Employment Standards, applicable Modern Awards or enterprise agreements, superannuation requirements, workplace health and safety laws and anti-discrimination laws. The specific obligations depend on the organisation, its workforce and the roles employees perform.
What is the SCHADS Award?
The Social, Community, Home Care and Disability Services Industry Award 2010 sets minimum employment conditions for eligible employees in parts of the social and community services, disability support and home care sectors. It covers matters such as classifications, minimum pay rates, hours of work, overtime and allowances. Employers need to confirm that the award applies and interpret its provisions correctly for their workforce. Learn more >
How can Workplace Plus help care sector employers?
Workplace Plus has extensive experience providing practical HR support to care sector employers. We help care sector employers navigate workplace obligations, address people-related risks and build safer, stronger and more compliant workplaces.
