Should home care workers miss out on being paid for late cancellations?

Susan’s thoughts immediately turned to her pay packet.

Aged care workers are among the lowest paid employees in the country, so every appointment counts. 

Susan called her employer, who said she would only be paid for the appointment if she was already on her way when the client cancelled. 

In the end, Susan’s fears were realised – she was not paid for the cancelled appointment.

Lauren Hutchins, from the Health Services Union’s (HSU) Aged Care Branch, told HelloCare the award requires much more notice than that. 

The award requires clients who cancel or change their rostered home care appointments to inform the employee of the change by 5pm the day prior. If the client doesn’t cancel within that tim frame, they have to pay – and the employee, the home care worker, gets paid.

Tim Hicks, General Manager Policy, Advocacy and Advisory, Leading Aged Services Australia (LASA), told HelloCare, “If they are not notified before 5pm on the day before the period of service, they would still be eligible for payment under the award.

“Full-time/part-time employees are usually paid or redeployed for the lost shift.”

However, Hutchins has seen that aged care providers often don’t charge their clients for late cancellations for fear of losing the client and in an effort to “remain competitive” in a competitive marketplace.

Casual staff must try to negotiate their own terms

Susan wrote about her non-payment for the late cancellation in a post on HelloCare’s Aged Care Worker Support Group on Facebook. Other members of the group revealed a range of policies in their workplaces in relation to cancellations, from requiring 24 hours’ notice to only requiring an hour’s notice. 

While permanent employees have a roster and there’s a requirement for those hours to be paid for, it’s less clear cut for casuals.

“Usually, a provider will at the very least pay for the first hour of a cancelled service for a casual worker,” Hicks said. 

“Casual workers need to be aware of the terms in the hiring contract or arrangement they agreed to, particularly if they are utilising a private hiring platform.”

Staff with concerns about their working conditions should talk to their employer, explained Hicks.

“Demand for home care workers is very high, and there are many providers offering above award entitlements to attract desperately needed staff, including paying casual staff for cancelled shifts,” he said.

Home care’s poor working conditions

Hutchins believes, in many ways, working conditions in home care are more difficult than in residential aged care.

“Split shifts” – blocks in the middle of the day where workers are not paid – are common, putting “a lot of pressure” on home care staff. 

“Low-hour contracts” are another significant problem in aged care, with staff guaranteed, for example, only four hours of work a week, said Hutchins.

“And then on top of that, you can be told with an hour’s notice that you’re no longer required,” she said.

Cafe staff, who don’t have anywhere near the same level of responsibility as aged care workers, are paid as much as $29 per hour, whereas a starting rate in aged care is about $22 per hour.

If the wages in cafes and restaurants are significantly higher than aged care, “then we will never meet the need in terms of workforce,” said Hutchins.

“You can understand why it’s really hard to attract people to the sector,” she added.

Workforce crisis

A report last year by the Committee for Economic Development of Australia estimated that Australia’s aged care workforce will have a shortage of more than 400,000 workers by 2050 without government intervention.

Australia will need at least an extra 17,000 direct aged care workers every year over the next decade “to meet basic standards of care”. 

Low wages, poor training and the lack of career progression combined with “negative public perceptions” of the industry are stopping people from entering the sector, according to CEDA.

The aged care sector will need to offer higher wages and better conditions “in line with comparable sectors” and for the government to pull “all available levers,” including increased sector funding, to ensure an adequate supply of workers, CEDA said.

Staff shortages in regional areas are particularly dire. 

Balancing the needs of clients, staff and business

Hicks said older people cancel home care services “regularly”, for example, if they go into hospital or to a day clinic, for medical appointments, for social outings or they go shopping, if they forget they won’t be home, or they transfer to another provider, or if they go into residential respite care.

This poses a “challenge” for providers, Hicks admitted. 

“Providers need to balance their obligations to both clients and staff, whilst ensuring their viability as a whole,” he said.

Cancellations are happening “much more often” during the COVID-19 crisis, Hicks noted. “Clear communication between all parties is vital to getting through this difficult time.”

Erosion of working conditions

Susan’s skills and experience as a care worker mean her services are in high demand. Not being paid for the late cancellation was the last straw with the aged care sector, and she has taken on a new role as a disability worker.

She has been hired as a subcontractor with a large care provider doing three 12-hour shifts per week.

Hutchins warned that subcontracting with regular hours “rings alarm bells” and could be an indication of sham contracting.

Employer-controlled working hours are generally an indication of employee status, whereas contractors have control over the hours they work. However, there are a range of factors that determine if a worker is a contractor or employee, and all factors need to be taken into account when determining the correct definition of the working relationship.

“Absolutely,” she replied when HelloCare asked her if a permanent role would be her preference.

‘Out of sight, out of mind’

Aged care employers support more competitive pay and conditions for staff, Hicks said. LASA and other members of the Australian Aged Care Collaboration have called on the government to address the problem of pay and conditions in aged care.

HSU Secretary, Gerard Hayes, told HelloCare the “uberisation” of home care through technology companies that “skim money off the top” and “treat workers really badly” is “dangerous” and “frightening”.

Ultimately, it’s older Australians who suffer. 

“You get the result you get for the people who need care,” he said.

Susan said she is “sad” to leave aged care after 15 years, but found working in home care “awful” and “unfulfilling.” 

Despite her extensive experience, she was mostly just cleaning. Her roster was changed at random, she worked in extreme heat at times, and she was subject to verbal abuse. 

Not being paid for the late cancellation was a step too far.

Another passionate, experienced aged care worker has left the sector.

*Not her real name.