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.

How much an employee gets paid for the sleepover period depends on whether they’re required to perform work during the sleepover.

See Sleepovers in the Social, Community, Home Care and Disability Services Award for more information about how sleepovers work, including minimum work periods before and/or after a sleepover.

Minimum pay for a sleepover period

An employee who isn’t required to perform work during a sleepover gets paid the sleepover allowance.

Example - not working during a sleepover

Connie is a social and community services employee - level 2 - pay point 2. She worked a sleepover shift on Monday night but wasn’t required to wake and perform any work. Connie will get the sleepover allowance for the shift.

Sleepover allowance:

4.9% of the standard rate

4.9% x $1224.90 = $60.02

Total pay for the sleepover = $60.02.

Additional pay once work is performed

An employee who is required to perform work during a sleepover gets paid:

• the sleepover allowance
• at least 1 hour’s pay at overtime rates.

The minimum of 1 hour’s pay is for the total time worked by the employee, not for each time they wake to perform work.

If the total time worked during a shift is more than 1 hour, the employee is paid the actual time worked at overtime rates.

Example: working during a sleepover

Connie is a social and community services employee - level 2 - pay point 2.

Minimum pay for work performed

During a sleepover on Tuesday night, Connie was only required to wake once to perform 30 minutes of work. She’ll get paid the minimum payment of 1 hour's pay at overtime rates for work performed and the sleepover allowance.

Calculation of pay:

Payment for time worked is a minimum of 1 hour at overtime rates:

$35.67 x 1.5 = $53.51

Total pay for the sleepover:

Sleepover allowance + minimum payment for time worked

$60.02 + $53.51 = $113.53

Connie gets $113.53 for the sleepover which includes the 30 minutes of work performed during the shift.

More than 1 hour worked

On Thursday night, Connie worked a total of 1.25 hours during a sleepover. Her time worked was recorded as:

• 15 minutes
• 45 minutes
• 15 minutes.

Connie gets paid for her actual time worked because it was more than 1 hour, plus the sleepover allowance.

Calculation of pay:

1.25 hours at overtime rates:

$35.67 x 1.5 = $53.51 (overtime rate)

$53.51 x 1.25 = $66.89

Total pay for the sleepover:

Sleepover allowance + payment for actual time worked

$60.02 + $66.89 = $126.91

Connie gets $126.91 for the sleepover which includes payment for her actual time worked.