Correct classification under the SCHADS Award is the foundation of a compliant payroll. Every entitlement flows from the classification level and pay point assigned to each employee. Misclassification is one of the most common and costly compliance failures in the care sector.
The SCHADS Award divides covered employees into four streams: Social and Community Services (SACS), Home Care, Crisis Accommodation, and Family Day Care. For NDIS providers, the most relevant streams are SACS and Home Care. Workers whose primary function is delivering personal care in a participant's home generally fall under the Home Care stream. Workers delivering support coordination or community participation typically fall under the SACS stream.
Key classification indicators: Level 1 (no qualifications required, routine tasks under close supervision); Level 2 (Certificate III, experienced support workers); Level 3 (Certificate IV or equivalent, greater autonomy); Level 4 (Diploma-level, supervisory or specialist responsibilities); Level 5 (Degree-level, professional practice, case management); Levels 6-8 (senior professional, management, specialist roles).
Within each classification level there are typically three pay points. Employees commence at pay point 1 and progress to the next pay point on each anniversary of their commencement in the role. Failing to advance employees to the correct pay point on their anniversary is a systemic underpayment that compounds over time. The Fair Work Ombudsman requires back-payment plus interest when underpayments are identified.
If an employee gains a new qualification or takes on substantially different duties, you may need to reclassify them to a higher level. Reclassification requires an assessment of whether the employee's actual duties genuinely meet the descriptors for the higher level. Document all classification decisions at hire and at each reclassification event: record the level and pay point, the basis for the classification, and any qualifications sighted.
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