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Federal Court of Australia - Full Court · [2026] FCAFC 25

Fair Work Ombudsman v Jats Joint

A Full Court employment case about SCHADS Award sleepovers, night shift loading and how care-sector rosters should be classified.

Federal Court of Australia - Full Court20 Mar 2026

Plain-English explainers, not legal advice. Check the linked official source before you rely on a specific section, and get advice for your situation.

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Quick read

  • Rostering sleepovers is not just an operations question.
  • A Full Court employment case about SCHADS Award sleepovers, night shift loading and how care-sector rosters should be classified.

Use this to check

  • Sleepover periods under the SCHADS Award are not automatically ordinary hours of work.
  • The sleepover allowance and overtime during a sleepover are separate from night shift loading.
  • Rosters should show the start and end of ordinary work, sleepover periods and any call-out work.

Decision snapshot

  1. 1

    What happened

    • Jats Joint employed Ms Kim Richards as a part-time Social and Community Services Employee Level 2 in the home care context.
    • Between January 2020 and December 2021 she was rostered to sleep overnight at a client's premises on 123 occasions.
    • The sleepovers appeared in three patterns: after ordinary hours, before ordinary hours, or between two separate periods of ordinary hours.
    • She was not rostered to work ordinary hours between midnight and 6 am on Monday to Friday.
  2. 2

    What the court had to decide

    • The Full Court had to decide whether, on the proper construction of the SCHADS Award, a sleepover formed part of the same shift as work performed immediately before or after it, so that the surrounding ordinary hours attracted the night shift loading under clause 29.3(b).
  3. 3

    What the court decided

    • The Full Court dismissed the FWO's appeal.
    • It accepted that the employee was not entitled to the 15 percent night shift loading merely because ordinary hours were worked before or after a sleepover, and the compliance notice based on the contrary construction did not stand.

Practical impact

Practical read

  • Rostering sleepovers is not just an operations question.
  • Employers covered by the SCHADS Award need to separate ordinary hours, sleepover allowances, overtime during a sleepover and shift loadings, then document the roster so payroll can apply the right category.

Useful next steps

  • Sleepover periods under the SCHADS Award are not automatically ordinary hours of work.
  • The sleepover allowance and overtime during a sleepover are separate from night shift loading.
  • Rosters should show the start and end of ordinary work, sleepover periods and any call-out work.
  • Compliance notices can turn on the construction of the relevant award clause.
  • Care-sector payroll systems should be tested against real roster patterns, not ideal examples.

Practical read

This case is useful for any care, support, disability, home-care or community-services business that uses sleepover rosters. The dispute was not about whether the employee should receive something for the sleepover. The SCHADS Award separately provides a sleepover allowance, and overtime can apply if the employee is required to perform work during the sleepover. The question was whether the sleepover also made the surrounding rostered hours a night shift for the 15 percent loading.

The Full Court accepted that the Award drafting was not perfectly clear, but preferred Jats Joint's construction. A sleepover period was treated as distinct from work performed before or after it. The sleepover was not ordinary hours of work merely because the employee was required to stay at the client's premises and be available if needed. The Court also treated the sleepover provisions and shiftwork provisions as separate parts of the Award that needed to operate together.

For small providers, the lesson is to build payroll around the Award categories rather than informal roster labels. If a roster includes afternoon work, a sleepover and morning work, payroll should be able to show which hours were ordinary hours, which period was the sleepover allowance, whether any overtime was triggered during the sleepover, and whether any shift loading applies independently of the sleepover.

Checks to run

Key points

  • Map each sleepover roster into ordinary hours, sleepover allowance and any overtime.
  • Check whether ordinary hours actually finish after midnight or start before 6 am.
  • Keep payroll notes explaining how sleepover and shift clauses were applied.
  • Review compliance notices by testing the legal construction of the award, not just the arithmetic.
  • Train rostering teams not to use one label for several different pay categories.

Key takeaways

  • Sleepover periods under the SCHADS Award are not automatically ordinary hours of work.
  • The sleepover allowance and overtime during a sleepover are separate from night shift loading.
  • Rosters should show the start and end of ordinary work, sleepover periods and any call-out work.
  • Compliance notices can turn on the construction of the relevant award clause.
  • Care-sector payroll systems should be tested against real roster patterns, not ideal examples.

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Update history

Case8 June 2026

Current workplace, credit and marketing cases added

Six current Federal Court explainers were added for workplace awards, Fair Work costs, credit declarations, therapeutic goods marketing and urgent finance guarantees.