Casual employment is widespread in Australia's care sector. The SCHADS Award's casual loading provisions are straightforward in principle but frequently misapplied in practice.
For a casual employee under the SCHADS Award (MA000100), the loading is 25% of the ordinary rate, and the Award states the combined weekend rates itself. The loading is added to the penalty rate. It is not multiplied by it. Each rule below is quoted from the Award with its clause number.
| Casual employee, working | What the Award says | Clause |
|---|---|---|
| Ordinary hours | The ordinary hourly rate plus a loading of 25% of that rate | 10.4 |
| Saturday (midnight Friday to midnight Saturday) | 175% of the ordinary rate of pay, inclusive of the casual loading | 26.4(a) |
| Sunday (midnight Saturday to midnight Sunday) | 225% of the ordinary rate of pay, inclusive of the casual loading | 26.4(b) |
| A public holiday | The public holiday rate (double time and a half), with the casual loading paid in addition | 34.2(a), (c) |
| Overtime | Triggered by hours worked: more than 38 a week or 76 a fortnight, or more than 10 hours in a day or shift | 28.1(b) |
| Each shift or period in a broken shift | A minimum number of paid hours | 10.5 |
"A casual employee will be paid per hour calculated at the rate of 1/38th of the weekly rate appropriate to the employee's classification. In addition, a loading of 25% of that rate will be paid."
The note to the clause explains what the loading is for: "The casual loading is payable instead of entitlements from which casuals are excluded by the terms of this award and the NES."
This is where casual pay most often goes wrong. A common shortcut is to add the 25% loading to the ordinary rate and then apply the Saturday or Sunday percentage to that loaded figure. The Award does not work that way. Clause 26.4 states the casual weekend rates directly:
"A casual employee who works on a weekend will be paid at the following rates: (a) between midnight Friday and midnight Saturday – 175% of the ordinary rate of pay (inclusive of the casual loading); and (b) between midnight Saturday and midnight Sunday – 225% of the ordinary rate of pay (inclusive of the casual loading)."
That is 150% + 25% on a Saturday and 200% + 25% on a Sunday. Applying the loading first and then the weekend percentage would give 187.5% and 250%, which the Award does not provide.
Worked example (illustrative, ordinary rate $30.00 an hour): a casual employee works 4 hours on a Sunday. Under clause 26.4(b) the rate is 225% × $30.00 = $67.50 an hour, so $270.00 for the 4 hours. The compounding shortcut ($30.00 × 1.25 × 2.00 = $75.00 an hour) would overpay by $7.50 an hour, or $30.00 for the shift. On a Saturday the Award rate is 175% × $30.00 = $52.50 an hour.
For public holidays, clause 34.2 says:
"(a) An employee required to work on a public holiday will be paid double time and a half of their ordinary rate of pay for all time worked.
(c) A casual employee will be paid the casual loading in clause 10.4 in addition to the public holiday penalty rate in clause 34.2(a)."
Double time and a half is 250%, and the 25% loading is paid in addition, so a casual employee working on a public holiday is paid 275% of the ordinary rate (the Award itself states 275% for casual remote work on a public holiday in clause 25.10(d)(i)). For $30.00 an hour, that is $82.50 an hour.
The Award does not state a combined figure for casual employees on afternoon and night shifts, where the loadings in clause 29.3 are 12.5% and 15% of the ordinary rate. Confirm with your payroll adviser how the casual loading is paid with them on your roster, rather than assuming.
A casual employee's overtime is triggered by hours worked, not by the roster. Clause 28.1(b)(i) says:
"All time worked by part-time or casual employees in excess of 38 hours per week or 76 hours per fortnight will be paid for at the rate of time and a half for the first 2 hours and double time thereafter, except that on Sundays such overtime will be paid for at the rate of double time and on public holidays at the rate of double time and a half."
Time worked up to the limits is not overtime. Clause 28.1(b)(v) says it is paid "at the ordinary rate of pay (including the casual loading in the case of casual employees)". The daily test (more than 10 hours in a day or shift) is in clause 28.1(b)(ii). The full rules are in our guide to SCHADS overtime.
"Part-time and casual employees will be paid for the following minimum number of hours, at the appropriate rate, for each shift or period of work in a broken shift: (a) social and community services employees (except when undertaking disability services work)—3 hours; (b) all other employees—2 hours."
Short casual bookings are common in home care and disability support. A booking shorter than the minimum is still paid for the minimum. See also the minimum engagement period and the broken shift allowance.
The rules about when a casual employee can change to full-time or part-time employment are in the National Employment Standards, not in the Award. Clause 10.6 says only:
"A pathway for employees to change from casual employment to full-time or part-time employment is provided for in the NES. See sections 66A to 66MA of the Act."
Read those sections of the Fair Work Act 2009 (Cth), or the Fair Work Ombudsman's guidance, before relying on any summary of the pathway, including older ones: the rules for changing casual employment status have been rewritten, so summaries written before the change are out of date.
If a casual employee questions their pay, you need to show the classification, the rate and how each shift was worked out. A record that shows the hours, the day, the rate applied and which Award clause it came from for every shift is easiest to defend.
Related: SCHADS penalty rates explained, casual vs permanent employment, pay rates.
25% of the ordinary rate, paid in addition to the hourly rate (clause 10.4).
175% of the ordinary rate on Saturday and 225% on Sunday, each inclusive of the casual loading (clause 26.4).
No. The weekend rates in clause 26.4 already include the casual loading (150% + 25% and 200% + 25%). Multiplying the loaded rate by the penalty percentage gives a higher figure than the Award provides.
The public holiday rate of double time and a half, with the casual loading paid in addition (clause 34.2).
Yes. Time worked in excess of 38 hours a week or 76 hours a fortnight, or more than 10 hours in a day or shift, is overtime for casual employees (clause 28.1(b)).
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