SCHADS Award — Casual vs Permanent Employment for NDIS Support Workers

The Three Employment Types Under SCHADS

Full-Time

A full-time employee works an average of 38 ordinary hours per week. They receive all leave entitlements — annual leave, personal/carer's leave, compassionate leave, long service leave — and have the protections of ongoing employment. Full-time employment is rare in NDIS disability support because the nature of shift work makes fixed hours difficult to guarantee.

Part-Time

A part-time employee works fewer than 38 hours per week on a regular, predictable basis — agreed hours are documented in the employment contract. They receive the same leave entitlements as full-time employees on a pro-rata basis. Part-time employees have set hours and days agreed in advance; hours outside these are paid at overtime rates.

Casual

A casual employee has no guaranteed hours and is engaged on a shift-by-shift basis. They receive a casual loading on top of the base rate as compensation for the lack of leave entitlements and job security.

Why Most NDIS Providers Use Casual Employment

The dominant employment model in NDIS disability support is casual. The reasons are practical:

• Participant support needs change — a SIL participant may need extra hours some weeks and fewer others
• Shift patterns are often irregular and cannot be guaranteed in advance
• Many support workers want flexibility — students, parents, and people with other jobs prefer casual arrangements
• Providers managing variable NDIS funding cannot always guarantee consistent hours

The tradeoff is that casual workers cost more per hour because of the loading — but the absence of leave accruals and redundancy obligations provides offsetting flexibility.

Casual Conversion Rights

Under the Fair Work Act, casual employees who have worked on a regular and systematic basis for a qualifying period have the right to request conversion to permanent employment. The specific qualifying period and process are set in the Fair Work Act and may be affected by enterprise agreements or the National Employment Standards.

Providers with long-term casual workers who work regular and predictable hours need to understand these rights and manage them proactively — including offering conversion where the eligibility criteria are met.

The True Cost Comparison — Casual vs Permanent

Many providers assume casual is always cheaper. This is not always true. Consider:

• Casual loading adds to every hour worked, including ordinary time
• Leave accruals for permanent staff are a future liability, but annual leave has to be paid regardless — it is deferred cost, not a saving
• Turnover costs are typically higher for casual workers — advertising, screening, and onboarding are expensive when staff leave frequently
• Engagement and reliability are often higher among permanent staff, reducing no-shows and last-minute cancellations

For core, ongoing positions where hours are predictable, a part-time permanent arrangement may be more cost-effective over time than casual employment.

Setting Up Payroll for Both Employment Types

Your payroll system must handle both employment types correctly:

• Casual workers: base rate + casual loading applied to every hour; no leave accruals
• Part-time permanent: base rate without casual loading; leave accruals at the actual hours worked each period
• Full-time permanent: base rate; leave accruals at 38 hours per week

Applying the casual loading to a permanent employee (or forgetting to apply it to a casual) is a payroll error with potential underpayment or overpayment consequences.