On 20 March 2026, the Full Court of the Federal Court handed down its decision in Fair Work Ombudsman v Jats Joint Pty Ltd [2026] FCAFC 25. The Full Court dismissed the FWO’s appeal against the primary decision, which found that under the provisions of the SCHADS Award sleepovers are separate and distinct periods of time that do not form part of a shift.

The Full Court confirmed:

• that penalties and loadings are calculated separately for periods of ordinary hours worked on either side of a sleepover, and
• that a sleepover can count as a break between rostered work periods.

The information below has been updated to reflect the outcomes of the Jats Joint decisions.

FWC proceedings

The FWO has been monitoring three applications made to the Fair Work Commission (FWC) to vary the sleepover provisions in the SCHADS Award. On 13 April 2026, the FWC issued a decision and a final determination varying the SCHADS Award, including to provide that a sleepover is not regarded as a break from work. The variations will commence on 1 June 2026, but not take effect in relation to a particular employee until the start of the employee's first full pay period on or after 1 June 2026.

The FWC has indicated that further proceedings are ongoing. We will continue to monitor all proceedings impacting the sleepover provisions.

Review and future updates

We will review and update the information below once the variations to the sleepover provisions take effect. We encourage you to check back regularly for updates.

In the meantime, if you need advice about the sleepover provisions of the SCHADS Award that could be impacted by the upcoming changes, please seek independent legal advice.

A sleepover is when an employee is required to sleep overnight at their client’s premises. It’s different to a 24 hour care shift. The span for a sleepover is a continuous period of 8 hours.

Employees must be rostered or paid for a minimum of 4 hours’ work before or after the sleepover period.

See Hours of work in the Social, Community, Home Care and Disability Services Industry Award for more information.

Is it considered one shift?

No. The sleepover and the hours worked or paid for before and/or after the sleepover are separate.

Example: Work before or after a sleepover

Andrea works in disability support services.

She is rostered to work 4pm-11pm on a Wednesday with a sleepover from 11pm to 7am Thursday.

As the sleepover and the period of work are separate and not considered one shift, Andrea's shift starts at 4pm on Wednesday and finishes at 11pm on Wednesday.

Andrea's shift is an afternoon shift, because it finishes after 8pm and before midnight. She'll be paid the afternoon shift penalty rate for the hours worked on Wednesday.

For the sleepover, Andrea will be paid 4.9% of the standard rate as a sleepover allowance.

Is a sleepover a break?

Yes. A sleepover counts as a break between rostered work periods.

Does a sleepover count as ordinary hours of work?

No. Only work before and/or after the sleepover counts as ordinary hours of work.

What is an employee paid during a sleepover?

See Pay for sleepovers in the Social, Community Services, Home Care and Disability Services Award for more information.

Do shift penalty rates apply?

Shift penalty rates will apply when a shift (not including a sleepover) meets the definition of an afternoon, night or public holiday shift.

Employees are only paid shift penalty rates for the hours they work before and/or after a sleepover.

Example: Sleepover and shift allowances not on a weekend

Orla works from 5pm until 10pm Monday, does a sleepover from 10pm until 6am then works from 6am to 9am on Tuesday.

An afternoon shift is a shift finishing after 8pm and at or before midnight Monday to Friday.

As Orla’s shift on Monday finishes at 10pm, she gets paid the 12.5% afternoon shift penalty rate for the hours worked from 5pm to 10pm on Monday.

For the sleepover Orla gets paid 4.9% of the standard rate as a sleepover allowance.

Orla gets paid her ordinary hourly rate for the hours worked from 6am to 9am on Tuesday. No loadings or penalty rates apply for work during that period.

Are shift penalty rates paid for hours worked on weekends before or after a sleepover?

No. Shift penalty rates don’t apply to hours worked on Saturdays or Sundays. Employees working before or after a sleepover on a Saturday or Sunday get paid:

• 150% of their ordinary rate of pay for work performed between midnight Friday and midnight Saturday
• 200% of their ordinary rate of pay for work performed between midnight Saturday and midnight Sunday.

Casual employees also get their casual loading.

Example: Sleepover and shift allowances on weekends

Bernie has a shift on Friday afternoon from 3pm to 10pm, does a sleepover from 10pm to 6am, and then works from 6am to 9am on Saturday. 

Bernie gets paid:

• 12.5% afternoon shift penalty rate from 3pm to 10pm on Friday
• 4.9% of the standard rate as a sleepover allowance
• 150% of their ordinary hourly rate from 6am to 9am on Saturday.