Every entitlement under the SCHADS Award flows from correct classification. Duties, skills, and autonomy determine the classification, not the job title. For dual role employees who work across streams, the dominant function test sets the pay, shift by shift. If the functions sit genuinely equal, the higher classification rate applies.
Key takeaways
- Classification errors flow through to underpayments of wages, loadings, overtime, and allowances. They can also amount to wage theft under the Fair Work Act, with criminal and civil consequences.
- The SCHADS Award has four streams: social and community services, home care, crisis accommodation, and family day care. Dual role employees commonly work across two of them.
- The dominant function test identifies the primary nature of work in each shift or roster cycle. If the functions sit genuinely equal, the higher rate applies.
- When an employee disputes their classification at the Fair Work Commission, the employer bears the onus of proving it correct.
- Annual classification reviews and accurate position descriptions remain the two cheapest insurance policies against misclassification claims.
Why is classification the threshold issue under the SCHADS Award?
Because every entitlement flows from it. Pay rates, loadings, overtime, and allowances all depend on the classification under the award’s schedules. So an error made at engagement does not stay contained. Instead, it compounds into systemic underpayment across every pay run until someone finds it.
The exposure has also sharpened. Underpayments caused by misclassification can amount to wage theft under the Fair Work Act. Recent legislative changes added criminal consequences for intentional underpayment, alongside the existing civil penalties. Employees can also dispute their classification through the Fair Work Commission. In those disputes, the employer bears the onus of proving the classification and level correct.
What are the four streams of the SCHADS Award?
The SCHADS Award classifies employees into four streams: social and community services, home care, crisis accommodation, and family day care. Within a stream, the duties performed, the skills required, and the level of autonomy determine the classification. The job title does not.
Job titles mislead constantly in this sector. For example, two workers can share the title “support worker” while performing materially different care. One does clinic-based social and community services work, another provides in-home care, and a third supports crisis accommodation. Each situation carries different classification consequences.
Also worth noting: the Fair Work Commission may yet amalgamate the streams because classifying across them causes so many problems. However, nothing has appeared in print so far. Until it does, classify against the award as it stands.
What is a dual role employee under SCHADS?
A dual role employee performs duties that correspond to more than one classification stream. The most common overlaps pair social and community services with home care, or with crisis accommodation. The situation also arises when a support worker moves into a supervisory role but keeps frontline duties.
Dual roles sit at the core of how community services and disability organisations operate, not at the edge. For instance, a worker might support clients at a clinic in the morning, then provide in-home care in the afternoon. Similarly, a team leader might supervise for three days and deliver care for two. Both situations need a deliberate classification decision, documented at the time. Reverse-engineering one after a dispute lands rarely ends well.
How is pay set for dual role employees? The dominant function test
The dominant function test identifies the primary nature of the work in a given shift or roster cycle. Pay then follows that classification. If the functions sit genuinely equal, the higher classification rate applies. Also, employers cannot artificially split rosters to dodge the higher rate.
Three practical rules follow:
- Assess by shift or roster cycle. The test looks at what the employee actually did on that shift, not what their contract vaguely anticipates.
- Equal means higher. If the split runs genuinely even, you pay the higher classification. Splitting rosters specifically to engineer a lower rate breaches the award.
- Document the basis. A classification decision without a written rationale becomes very hard to defend, because the onus sits with you.
How do employers stay on top of classifications?
First, classify correctly at engagement. Then reclassify whenever duties change. Also run an annual classification review, especially after a restructure or a new contract win. Those events quietly change what employees actually do day to day, so the paperwork drifts out of date fast.
Position descriptions remain the most neglected control. In this sector they often read broad and generic. Consequently, they fail at the one job that matters in a dispute: describing the real environment and nature of the work. A position description that says “provides support to clients” defends nothing. However, one that specifies care types, settings, supervision, and autonomy gives your decision a documented foundation.
Keeping that documentation current across hundreds of employees becomes an administrative problem as much as a legal one. So put the records where they maintain themselves. A central employee database holds positions, position descriptions, and role history in one place. Add document e-signing for updated position descriptions, plus automated workflows that trigger a review when someone changes roles. As a result, classification evidence accumulates as a by-product of normal operations rather than a yearly scramble.
Related reading: SCHADS Award Changes June 2026: What NDIS Providers Need to Do Now covers the wider 1 June changes that classification decisions feed into.
Frequently asked questions
What determines an employee’s classification under the SCHADS Award?
The nature of the duties performed, the skills required, and the level of autonomy exercised determine the classification, assessed against the award’s schedules. The job title does not. In fact, identical titles across a workforce often hide materially different classification outcomes.
What is the dominant function test in the SCHADS Award?
The dominant function test identifies the primary nature of the work an employee performs in a given shift or roster cycle. Pay then follows that classification. If the functions performed sit genuinely equal, the higher classification rate applies instead.
Can an employee challenge their SCHADS classification?
Yes. Employees can dispute their classification through the Fair Work Commission. When that happens, the employer bears the onus of proving the classification and level correct. So a documented basis for each classification decision becomes your primary defence.
Is misclassification under SCHADS considered wage theft?
It can be. Underpayments that result from misclassification can amount to wage theft under the Fair Work Act. Also, legislative changes introduced criminal consequences for intentional underpayment, alongside the civil penalties. Prompt correction and back-payment materially reduce the exposure.
How often should SCHADS classifications be reviewed?
Review classifications at least annually. Also review immediately after any restructure, new contract win, or change in an employee’s duties. Classification reflects what employees actually do, so any event that changes day-to-day work should trigger a fresh look at the affected roles.
About the author
Graham Martin is the co-founder of Worknice, an Australian HRIS for NDIS and community services providers. The platform automates onboarding, document acknowledgements, and compliance tracking. This article draws on a June 2026 webinar Graham co-presented with Isabella Turner, workplace lawyer at Chamberlains. It is general information, not legal advice.
Sources
- Fair Work Commission. “Social, Community, Home Care and Disability Services Industry Award 2010 (MA000100).” https://library.fairwork.gov.au/award/?krn=MA000100
- Fair Work Ombudsman. “Award classifications.” https://www.fairwork.gov.au
- Turner, I. and Martin, G. “Getting SCHADS Right in 2026.” Chamberlains Law Firm and Worknice webinar, June 2026.
