Going from "just me" to your first employee is a big step — and one that comes with real legal obligations. Get the paperwork right and you protect yourself, your worker and your participants. Get it wrong and you're exposed to underpayment claims, unfair dismissal risk and audit problems.

Start with the right award: SCHADS

Most disability support workers are covered by the Social, Community, Home Care and Disability Services (SCHADS) Award. It sets minimum pay rates, penalty rates for evenings and weekends, casual loading, overtime, broken-shift rules and minimum engagement periods. Paying "a fair hourly rate" you made up yourself is how providers accidentally underpay — and the penalties are steep.

SCHADS classifications explained simply

SCHADS uses a classification structure to determine pay rates. The level you assign to your worker determines their minimum hourly rate, so it's important to get it right from day one. In simple terms:

Check the current SCHADS Award on the Fair Work Ombudsman website — it has a summary of each level and what it covers. When in doubt, get advice. Misclassifying a worker (usually classifying them too low to save money) is one of the most common compliance failures in the sector, and the Fair Work Ombudsman does investigate complaints.

Casual vs permanent: the trade-offs

Many new providers default to casual because it feels flexible. But there are real trade-offs:

There's also a provision in SCHADS around "regular casual" workers — if a casual has been engaged on a regular, systematic pattern for a period of time, they may have the right to request conversion to permanent employment. This is worth being aware of as you build your team.

The documents you need before day one

Onboarding and induction: what to cover

Your induction isn't just a paperwork exercise — it's your worker's first real understanding of how your service runs. Cover these areas before their first shift with a participant:

Record all of this on a signed induction checklist. Keep it in the worker's personnel file. This document is one of the first things an auditor asks for.

Probation and supervision

The probation period exists for a reason — it's your opportunity to assess whether the worker is a good fit before the full rights of ongoing employment apply. A few things to know:

After probation, continue regular supervision — at least quarterly for most workers, more frequently for new or developing workers. Supervision records are an audit requirement in the governance quality area.

Why this matters for your audit too

Your staff documents aren't just an HR formality — auditors check them. "How do you make sure your workers are suitable and supported?" is a standard audit question, and your contracts, screening records and induction checklists are the answer.

Record-keeping for audits

For each worker, maintain a personnel file that includes:

Store these files securely. Personnel records are confidential. If you're using paper files, they need to be in a locked cabinet. If digital, in a password-protected system with controlled access.

Your first hire is the foundation of your team culture. Build it right from day one.

Don't build these from scratch. Our HR & Workforce Pack includes SCHADS-aware employment contracts, position descriptions, rosters, timesheets and induction checklists — personalised to your business. It comes bundled in our complete toolkit alongside your full document pack and every compliance tool.

See the complete toolkit →

Common hiring mistakes small providers make

Beyond the first hire: building a team culture from the start

The way you hire and onboard your first worker sets the tone for every hire after that. Providers who take the time to do it properly — clear expectations, thorough induction, regular supervision, documented everything — tend to retain their workers better, have fewer HR problems, and find audits much less stressful. Providers who rush it tend to spend a lot of time fixing things later.

Your team culture starts with how you treat your first employee. Pay them correctly. Induct them properly. Supervise them regularly. Be clear about expectations and open about problems. Workers who feel supported and respected deliver better support to participants — and that's the whole point.

Your first hire is the foundation of your team culture. Build it right from day one.

Want to see what good workforce documentation looks like? Our free Audit Readiness Self-Assessment includes a workforce section — so you can check where you stand before your first hire starts.

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What to do if a worker isn't working out

Even with a careful hire, sometimes it doesn't work out. If a worker's performance is a concern, deal with it early and document everything. Here's the general approach:

Performance management done well protects you, protects the worker, and protects your participants. Done poorly, it creates liability and bad feeling. When in doubt, seek advice.

Hiring well: a simple checklist before day one

The real cost of getting it wrong

Getting the paperwork wrong with your first hire can be expensive in ways that aren't immediately obvious. Underpayment claims under the Fair Work Act can be backdated for years — a worker who was paid $2 an hour under the SCHADS rate for two years represents a significant liability. Unfair dismissal claims for workers who weren't managed properly through a documented process can result in compensation payments and reputational damage. NDIS Commission concerns about a worker who was allowed to work without a valid screening check can jeopardise your registration.

None of these are hypothetical. They happen to small providers regularly. The paperwork burden can feel heavy at the start, but it's far lighter than the alternative.

Hiring well starts with the boring stuff done right. Get the paperwork sorted first and your first hire becomes an asset, not a liability.

Hire your first worker the right way

The HR & Workforce Pack gives you SCHADS-aware contracts, rosters and induction checklists, bundled with the complete toolkit.

See the complete toolkit →