Aged Care Award 2010 - A Simple Guide for Your Business

Apr 7

Who Does This Award Cover?

The Aged Care Award applies to employers across Australia involved in the "aged care industry." This specifically relates to providing accommodation and care for aged persons.

Common workplaces covered include:

Nursing homes and hostels.
Aged care independent living units and serviced apartments.
Retirement villages and garden settlements.

The Award covers both the people providing the care and the support staff who keep the facility running. It is divided into two distinct streams: General Employees (like admin, laundry, and maintenance) and Direct Care Employees (those providing personal care or lifestyle services).

Common roles covered include:

Direct Care: Personal Care Workers (PCWs) and Recreational/Lifestyle Activity staff.
General - Support Services: Cleaners, laundry hands, gardeners, and maintenance.
General - Food Services: Cooks, chefs, and food service assistants.
General - Administration: Receptionists, clerks, and pay clerks.

Employment Basics: Full-time, Part-time, and Casual

Full-time: These employees work 38 hours per week (or an average of 38).
Part-time: These employees work less than 38 hours on a regular, predictable schedule. Crucial Tip: You must agree on their hours, days, and start/finish times in writing before they start. Any changes to these hours must also be in writing.
Casual: These employees have flexible hours (up to 38 per week) but do not receive paid leave. To compensate, they receive a 25% loading on top of the base hourly rate. The National Employment Standards (NES) also provide a pathway for casuals to transition to permanent roles if they meet certain criteria.

Minimum Engagement

To protect staff from being called in for tiny shifts, the Award sets a minimum payment for any single engagement:

Full-time staff: At least 4 hours of pay.
Part-time and Casual staff: At least 2 hours of pay.

Rostering Rules

The standard work week is 38 "ordinary hours." How you schedule these hours is key to both compliance and operational success.

You must display your roster in an accessible place (on a noticeboard or electronically) at least two weeks in advance. If you need to change a roster, you generally must give 7 days' notice, unless there is an emergency or a staff member is away due to illness.

Broken Shifts and Sleepovers

Broken Shifts: You can agree with a part-time or casual employee to work a "broken shift." This means the shift is split into two parts (e.g., morning and evening) with a break in the middle. The total span of the shift cannot exceed 12 hours.
Sleepovers: This is when an employee stays overnight to be on call for emergencies. You must provide a separate room and bed, free board and lodging, and pay a specific Sleepover Allowance. No work other than emergencies should be performed; if they are called to work, they must be paid for that time.

Taking Breaks: Keeping Your Team Refreshed

Regular breaks are vital for safety. Use this table as a quick reference for your scheduling:

Break Type

Eligibility

Duration & Pay Status

Meal Break - Shifts over 5 hours. 30–60 minutes (Unpaid).

Tea Break - Shifts of 7.6 hours or more. Two 10-minute breaks (Paid).

Tea Break - Shifts under 7.6 hours. One 10-minute break for every 4-hour period (Paid).

Rest Gap - Between all shifts.Minimum 10 hours off between shifts.

Compliance Tip: If you require an employee to work through their meal break, you must pay them at overtime rates from the start of the break until they finally get to take it or their shift ends.

Shiftwork and Weekends

The Award defines a Day Shift as any work performed between 6:00 am and 6:00 pm, Monday to Friday. Working outside these hours or on weekends triggers "penalty rates" (extra pay):

Afternoon and Night Shifts: Shifts starting or ending outside the 6 am–6 pm window attract extra percentages on top of the base rate.
Weekends and Public Holidays: Saturday, Sunday, and Public Holiday work attracts significantly higher pay than standard weekday shifts.

Why Correct Classification is Critical

You are required to assign every employee a "Level" in writing. Getting this wrong is a major compliance risk. Following recent updates, there are now two separate structures:

General Employees (Levels 1 to 7): Covers admin, food, and maintenance.
Direct Care Employees (Levels 1 to 6): Specifically for those providing personal care.

The 2025 Direct Care "Experience Rule"

Effective January 1, 2025, there are specific rules for new care staff:

Level 1 (Introductory): For staff with less than 3 months of experience.
Level 2: Staff must move to Level 2 once they have 3 months of experience.
Level 4 (Senior): This now requires a Certificate III plus 4 years of experience at Level 3.

Tip: Use a Qualification Register to stay ahead of pay increases, keep a register of your team’s qualifications and start dates. When an employee hits their 3-month milestone or completes a Certificate III/IV, they are often legally entitled to a higher pay level immediately.

Common Compliance Pitfalls for Employers

The "Handshake" Agreement for Part-timers: Forgetting to put a part-time employee’s regular hours and days in writing is the #1 mistake.

Ignoring the 10-hour Rest Rule: Frequently scheduling staff for a "late-early" (a late shift followed by an early morning) without a 10-hour gap can lead to penalty rate claims.

Mixing up the Streams: Placing a Direct Care worker on the General Employee pay scale (or vice versa) often results in incorrect pay.

The Right to Disconnect: Since August 2024 (and 2025 for small businesses), employees have a legal right to refuse to monitor or respond to contact outside of work hours unless it’s "unreasonable." Calling to offer an emergency roster change is generally okay, but routine admin calls might not be.

Practical Tips for Staying Compliant

Provide the Paperwork: When you hire someone, you must give them a copy of the Award (or easy digital access) and the Fair Work Information Statement.
Use IFAs Wisely: You can use an Individual Flexibility Arrangement to change how some award terms apply (like when work is performed), but only if the employee is "better off overall" and agrees to it in writing.
Future-Proof Your Payroll: Ensure your payroll system is updated for the January 2025 classification changes, especially the automatic move from Level 1 to Level 2 for care staff after 3 months.

If you’re ever unsure about a specific situation or an employee’s level, FiveSeven can help make sure you’re on the right track. Staying proactive is the best way to keep your business running smoothly!

The information above forms part of our Understanding Your Award series and provides a high-level overview only. Further obligations may apply depending on your business and workforce. This Information is current at the time of publication Jan 2026. Workplace laws and awards may change.