SCHADS Client Cancellation Pay Rules 2025-26 (cl.25.5(f))
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Client & Shift Cancellation Pay

When an NDIS client cancels a rostered service, the worker does not automatically lose their pay. Under clause 25.5(f) of the SCHADS Award (in force since 1 July 2022), the employer must either pay the worker for the cancelled service or direct make-up time — and it can only do the latter with at least 12 hours' notice. Getting this wrong is one of the most common underpayment exposures in disability and home-care payroll, because the old pre-2022 rule that let employers withhold pay no longer exists.

Quick Facts

Cancellation Clause
cl.25.5(f) 'Client cancellation' (a sub-clause of 25.5 Rosters)
Make-up Time Threshold
At least 12 hours' notice before the rostered start
Pay if Notice < 12h
Worker must be paid for the cancelled service in full
Make-up Shift Notice
At least 7 days' notice of the new shift (unless agreed)
Make-up Window
Worked within 6 weeks of the cancelled service
Does Not Apply To
Casual employees are excluded from the cancellation provisions
In Force Since
1 July 2022 (current for 2025-26 MA000100)

Tools & Resources

The rule: pay the worker OR direct make-up time (cl.25.5(f))

When a client cancels or changes a rostered service, clause 25.5(f) 'Client cancellation' gives the employer two — and only two — options:

  • Pay the worker for the cancelled service as if they had worked it; or
  • Direct make-up time, where the worker performs substitute work instead of being paid for the lost shift.
The employer cannot simply cancel the shift and pay nothing. Since 1 July 2022, the option to withhold pay for a cancelled shift has been removed — the old rule that allowed no payment if notice was given by 5pm the day prior is gone. So the question is never "do we pay?" but "do we pay, or do we lawfully direct make-up time instead?" — and that turns entirely on notice. Cancellation sits within the broader SCHADS rostering rules in clause 25.5.

Note: one widely-cited tertiary source mislabels this rule as clause "25.6" — but 25.6 is actually Broken shifts. The cancellation provision is 25.5(f), which sits immediately before 25.6 in the consolidated award.

The 12-hour notice threshold

The figure that decides whether you pay or can direct make-up time is 12 hours. An employer may only direct a worker to perform make-up time — instead of paying for the cancelled service — if it gives the worker at least 12 hours' notice before the service was rostered to start.

  • 12 hours or more notice: the employer may direct make-up time (subject to the make-up conditions below) or choose to pay.
  • Less than 12 hours' notice: the worker must be paid for the cancelled shift. Make-up time is not available.
This is the real meaning of the "12 hours" figure that circulates online. It is not a blanket "pay only if cancelled within 12 hours" rule — the worker is entitled to be made whole regardless; the 12 hours simply determines whether that happens through pay or through directed make-up work.

Make-up time: pay rate and conditions

Where the employer lawfully directs make-up time, several conditions in clause 25.5(f) protect the worker:

  • Higher-of pay: the worker is paid the higher of (a) the amount they would have been paid for the originally cancelled service, or (b) the amount that applies to the make-up work actually performed. They can never be worse off.
  • 7 days' notice of the new shift: the worker must receive at least 7 days' notice of the make-up shift, unless they agree to less.
  • 6-week window: the make-up time must be worked within 6 weeks of the date of the cancelled service.
  • Consultation: the employer must consult the worker about the change.
  • Different client or role: make-up work may involve different clients or a different role, provided the worker has the skills and experience to do it.
If any of these conditions cannot be met, the practical effect is that the employer should pay for the cancelled service rather than try to force unsuitable make-up work.

Worked example

A support worker is rostered for a 3-hour personal-care service starting 9:00am Tuesday. The client cancels.

Scenario A — cancelled at 6:00pm Monday (15 hours' notice): the employer has more than 12 hours' notice, so it may direct make-up time. It offers a substitute 3-hour shift the following week, gives 7 days' notice, consults the worker, and schedules it within the 6-week window. The worker is paid the higher of the original shift or the make-up shift.

Scenario B — cancelled at 8:00pm Monday, but only notified to the worker at 11:00pm (10 hours' notice): less than 12 hours before the 9:00am start, so make-up time is not available. The worker must be paid for the full 3-hour cancelled service as if worked.

The trap is Scenario B: payroll systems frequently drop the shift entirely because "no work was performed," producing a silent underpayment. Remember the cancelled service must also satisfy any applicable minimum engagement — you pay the rostered hours, not less.

7 days vs 12 hours: don't confuse the two figures

Both "12 hours" and "7 days" are real SCHADS figures, but they mean different things, and conflating them is the single most common source of confusion:

  • 12 hours = the cancellation / make-up trigger. With at least 12 hours' notice the employer can direct make-up time; with less, it must pay.
  • 7 days = the notice the worker must receive of the new make-up shift, which mirrors the general roster-change notice period in clause 25.5.
Some AI-generated summaries describe cancellation as triggering pay "within 7 days." That framing wrongly imports the make-up-shift notice into the cancellation pay test. The cancellation pay trigger is the 12-hour threshold — not 7 days. When auditing your roster software, check that it keys cancellation pay on the 12-hour cut-off, not a 7-day window.

Separately, Fair Work Ombudsman guidance indicates the cancellation provisions are engaged where the cancellation occurs within 7 days of the scheduled service. This is an applicability window, not the pay trigger — confirm the exact wording against the current clause 25.5(f) before relying on it.

Scope: which workers and services are covered

The client-cancellation provisions in clause 25.5(f) apply to:

  • Home care employees; and
  • Social and community services employees undertaking disability services work.
Casual employees are excluded from the client-cancellation provisions — per Fair Work Ombudsman guidance, the pay / make-up-time regime applies to full-time and part-time employees, not casuals (whose casual loading is treated as compensating for this kind of irregularity). Disability services were brought within the client-cancellation provisions from 1 July 2022 — before that, the rule applied to home care only. This is significant for NDIS providers: if your support workers are classified as community-services employees doing disability work, the 12-hour / make-up-time / no-withholding regime applies to them in full. The same 1 July 2022 variation that extended scope also removed the employer's ability to withhold pay for a cancelled shift. No further substantive change to the cancellation rule was identified for 2025-26; it remains in force in the current consolidated MA000100. To see how cancellations interact with rest periods and roster changes, read the rostering rules guide.

Common Questions

Frequently Asked Questions

If a client cancels a shift, does the worker still get paid under SCHADS?
Yes — unless the employer lawfully directs make-up time. Under clause 25.5(f) the employer must either pay the worker for the cancelled service or direct make-up work. It can only direct make-up time if it gave at least 12 hours' notice before the rostered start; with less than 12 hours' notice the worker must be paid for the cancelled shift in full. (The cancellation provisions apply to full-time and part-time employees, not casuals.)
What is the 12-hour notice rule for SCHADS cancellations?
The 12-hour threshold determines whether an employer can direct make-up time instead of paying. If at least 12 hours' notice is given before the service was rostered to start, the employer may direct make-up work; if less than 12 hours, the worker must be paid for the cancelled service (cl.25.5(f)).
How much is a worker paid if they perform make-up time?
They are paid the higher of (a) what they would have been paid for the originally cancelled service, or (b) what applies to the make-up work actually performed. They can never be left worse off by accepting make-up time (cl.25.5(f)).
Does the SCHADS cancellation rule apply to NDIS disability support workers?
Yes, for full-time and part-time employees. Since 1 July 2022 the client-cancellation provisions cover both home care employees and social and community services employees undertaking disability services work. Before that date the rule applied to home care only, so disability providers must apply it for the current 2025-26 award. Casual employees are excluded from these provisions.
Can an employer just cancel a shift and pay nothing?
No. Since 1 July 2022 the employer can no longer withhold pay for a cancelled shift. The old pre-2022 rule allowing no payment if notice was given by 5pm the day prior was removed. The only alternative to paying is lawfully directing make-up time with at least 12 hours' notice (cl.25.5(f)).
Is the SCHADS cancellation clause 25.6?
No. Client cancellation is clause 25.5(f), a sub-clause of clause 25.5 (Rosters). Clause 25.6 is actually Broken shifts. Some online sources mislabel cancellation as 25.6 — but in the consolidated award, 25.5(f) sits immediately before the 25.6 broken-shift provisions.

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