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The rules concerning sleepover shifts in the SCHADS Award are changing from the first full pay period on or after 1 June 2026.

The rules around sleepovers have been in a state of flux since a court decision in 2025 () which altered the traditional understanding of how the sleepover provisions in the SCHADS Award operated.

Then in December 2025 the Fair Work Commission (FWC) issued a draft determination (the Draft Determination) setting out actual changes of wording to the sleepover provisions in the Award that it wished to make. 

The Commission has now made a (the Final Determination) which finalises the wording of the changes and sets out the date the changes will take effect, being 1 June 2026.

The Final Determination does not alter how the changes set out in the Draft Determination operate in any material way. Here’s exactly how the new provisions will work.

A sleepover is not a “break”

One of the most significant parts of the amendments to the Award is the FWC’s clarification on whether work periods adjoining either side of a sleepover counts as a single shift, and whether the sleepover itself counts as a break away from work.

Currently, under the Award, employees usually need an 8-to-10-hour break away from work between shifts. The Jats Joint decision also clarified that work periods adjoining a sleepover are to be treated as separate shifts.

This position is changing.

Following the changes being made to the Award, if an employee works before a sleepover and then works immediately after it, those two periods of work will now be considered part of the same single shift. Furthermore, a sleepover period straddling between both periods of work does not count as a break away from work.

At first glance, this would appear to pose challenges to employers who wish to roster employees to work periods of work of more than a few hours both before and after a sleepover, given the current rules that state that the maximum length of a shift (not including the sleeping part of a shift) can only be 8 or 10 ordinary hours.

The FWC has therefore determined to amend the Award to provide some greater flexibility in this area.

New flexibility: The 12-hour agreement

Recognising that many services (especially youth residential care) rely on having the same person present in the evening and the following morning, the FWC will introduce a new flexible option.

From 1 June 2026, employers and employees can agree to extend the “ordinary hours” of a shift that includes a sleepover, as follows:

• The 12-hour rule: By agreement, a shift that includes a sleepover can consist of up to 12 hours of active work (excluding the sleepover itself).
• The cap: You cannot roster more than 8 ordinary hours of work on either side of the sleepover within that single shift. 
• Example: A staff member could agree to work 6 hours before a sleepover and 6 hours after it as “ordinary hours,” provided they’ve agreed to this arrangement.

How to handle pay and penalties

The decision also clarifies how to calculate shift loadings (extra pay for working unsocial hours like late nights) once the variation comes into effect.

1. Split loadings: You will only pay shift loadings for the active work parts of the shift, not the sleepover itself. The two separate parts of the shift (before and after the sleepover) should be treated separately for the purpose of calculation shift loadings .
2. Separate calculation: Practically speaking, this will usually mean that the first part of the shift before the sleepover will qualify for the “afternoon shift” loading of 12.5%, given the definition of afternoon shift is “any shift which finishes after 8.00 pm and at or before 12 midnight Monday to Friday”.

However, the Award will make clear that the part of the shift after the sleepover is treated separately. This means that so long as this part of the shift commences on or after 6:00am, then no afternoon or night shift penalty will apply (given the night shift penalty only applies to “any shift which finishes after 12 midnight or commences before 6.00 am Monday to Friday”.  

This is good news for employers who had interpreted the Award as requiring the night shift penalty to be paid for both the period before and after the sleepover part of the shift.

3. Sleepover allowance: The standard sleepover allowance still applies as a flat fee in addition to the hourly rates for the active work.
4. Overtime: Any active work during the sleepover (e.g., waking up to assist a client) is still paid at overtime rates. Any work beyond the agreed 12 ordinary hours of active work is also overtime.

Practical steps for employers

Once this decision comes into effect, you’ll want to look at each of these areas to avoid non-compliance and backpay risks.

1. Review your rosters: Review your current rostering arrangements, especially if your organisation operates on a 24-hour model. If you have staff working 8 hours before and 8 hours after a sleepover, the final 4 hours of that morning period will be considered overtime moving forward, unless you restructure.
2. Update your documents: Since the 12-hour ordinary shift relies on “agreement,” you should consider updating your standard employment contracts (by agreement with staff). You could also create a simple written agreement form for staff to sign if they are happy to work these extended shifts.
3. Adjust payroll settings: Confirm your payroll software is set up to treat the periods before and after a sleepover as a single shift for the purpose of calculating total daily hours, while still “splitting” the shift loadings correctly for the different times of day.
4. No need for retrospective pay: These changes are not retrospective. This means you only need to comply with these rules from 1 June 2026.

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