Award Rules - Shift Component Limit Capping
Overview
To support the changes in the Social, Community, Home Care and Disability Services Award (SCHADS) modern award effective 1st June 2026, Definitiv can now apply limits to the shift components that make up a wider grouped overnight shift.
Whilst this has been built to support working before and after a sleepover, this functionality can be used if it fits your needs.
Key Benefits:
Limits can be enforced on the whole shift or on each individual timesheet within it, on the same award policy.
No change required to how overnight shifts are combined for other rules.
Reduces the risk of a limit being applied too broadly across a merged overnight shift.
Getting Started
Prerequisites
Before you can use the Shift Component period, your system administrator must update the relevant limit rules in the award policy.
For System Administrators:
Access to Award Policy configuration.
Understanding of which overnight shifts in your organisation are entered as more than one timesheet.
Knowledge of which limit rules currently apply at the whole-shift level, and which of those should instead apply per timesheet/shift component.
For Payroll Officers:
No additional permissions required.
The Shift Component limit is applied automatically once configured in the award policy.
No change to how timesheets are entered or approved.
Note: Shift Component is an optional new period option. Existing limit rules using Shift, Day, or any other period continue to work unchanged unless they are explicitly changed to Shift Component.
Understanding the Change
The Problem with Whole-Shift-Only Limits
When an overnight shift is entered as more than one timesheet, Definitiv combines them into a single shift so that whole-shift limits can be calculated correctly. This meant a limit configured on that shift could only ever be checked against the combined total, never against the individual timesheets that made it up. Some limits need to apply per timesheet instead, so that each portion of the shift is capped on its own merits.
Example: Whole-Shift Limit vs Shift Component Limit
Suppose an overnight shift is entered as a 9 hours pre sleepover and 4 hours post sleepover timesheets, and a limit caps each shift component at 8 ordinary hours and a combined shift total of 12 ordinary hours.
| Hours | Whole-Shift Limit Result | Shift Component Limit Result |
Timesheet 1 | 9 | Shares one 8 hour cap over all worked timesheets | 8 hours at ordinary rate, 1 hour at overtime rate |
Timesheet 2 | 5 | Shares one 8 hour cap over all worked timesheets | 4 hours at ordinary rate, 1 hour at overtime rate |
Total | 14 | 8hours at ordinary rate, 6hours at overtime rate | **12 hours at ordinary rate, 2 hours at overtime rate ** |
With a whole-shift limit, only 8 hours across the entire combined shift receive the ordinary rate. With a Shift Component limit, each timesheet is capped at 8 hours on its own and 12 hours combined, so 12 hours in total receive the ordinary rate.
How the Shift Component Limit Works
Definitiv identifies the individual timesheets that make up a merged overnight shift.
Where a limit rule is set to the Shift Component period, each timesheet is checked against the limit separately.
Any other rule on the same shift that is set to the Shift period continues to evaluate the combined shift as a whole, unaffected.
The result for each timesheet is applied to that timesheet's pay, without affecting the totals calculated for other timesheets in the same shift.
Configuring the Shift Component Limit in Award Policies
Navigate to Payroll, Award Policies.
Select the award policy you wish to configure.
Locate the limit rule you want to apply per timesheet, rather than per grouped shift.
Set the rule's period to per Shift Component.
Save the award policy.
Note: This period option is currently available on limit rules only.
Example - The below set up is to cap the shift components at 8 hours, shift at 12hrs and the week at 38hrs of ordinary tagged time.
How Pay Runs Use the Shift Component Limit
Automatic Application
Once configured, the Shift Component limit is applied automatically whenever an overnight shift made up of multiple timesheets is processed in a pay run. Payroll officers require no additional steps.
During pay run calculation:
The system identifies the individual timesheets making up each merged shift.
For any limit rule set to Shift Component, each timesheet's totals are checked against the limit separately.
The amount within the limit is paid at the relevant rate. Any amount above the limit for that timesheet is paid at the base or fallback/overflow rate.
Rules still set to the Shift period continue to evaluate against the whole combined shift, unaffected.
Reviewing the Result
When reviewing a pay run, you can confirm which period was used by:
Opening the pay run.
Reviewing the employee's pay details for the shift.
Checking the limit's pay item on each timesheet to confirm the per-timesheet result where Shift Component is used.
Current Scope and Limitations
This is currently available on limit rules only.
Only applies to overnight shifts made up of more than one timesheet. Shifts entered as a single timesheet are unaffected.
Shift Components are considered as a singular individual timesheet which are then grouped with other timesheets.
Does not change how overnight shifts are combined for any other purpose, such as whole-shift limits or reporting.
Does not retrospectively recalculate pay runs processed before Shift Component was configured on a rule.
Backward Compatibility
Existing Award Policies
Implementation of the Shift Component period does not affect existing limit rules that are not configured to use it.
Key points:
Existing limit rules using Shift, Day, or other periods continue to work unchanged.
Shift Component must be explicitly selected on a rule for that rule's behaviour to change.
There is a clear distinction between rules configured to use Shift Component and those that are not.
No existing functionality is broken by this enhancement.
Important: Changing an existing limit from Shift to Shift Component may change pay outcomes for employees whose overnight shifts are split across multiple timesheets. Review and communicate any changes to affected employees as required.
Troubleshooting
Limit Still Applying to the Whole Shift
Problem:
A limit still appears to apply across the combined shift rather than per timesheet.
Solution:
Confirm the rule's period is set to Shift Component, not Shift.
Confirm the shift in question is actually made up of more than one timesheet.
Check for other rules still set to the Shift period that may be affecting the same pay item.
Limit Not Applying at All
Problem:
A timesheet-level limit doesn't appear to be applying.
Solution:
Confirm the limit rule is configured on the correct pay item.
Confirm the timesheet in question is part of a merged overnight shift.
Frequently Asked Questions
Q: Does Shift Component apply automatically to all overnight shifts?
A: No. It must be explicitly configured on the relevant limit rule. Only rules with Shift Component selected will apply per timesheet.
Q: What happens to shifts entered as a single timesheet?
A: They are unaffected. There is nothing to split, so the limit is simply checked against that one timesheet.
Q: Can I use Shift Component and Shift period rules together?
A: Yes, different rules on the same award policy can use different periods independently.
Q: Is this available on rule types other than limit?
A: Not currently. Shift Component is only available on limit rules at this time.
Q: Will this recalculate historical pay runs?
A: No. This enhancement applies going forward only. It does not produce a retrospective recalculation of pay runs processed before it was configured.
Q: Does this change how overnight shifts are combined?
A: No. The combining of timesheets into a shift is unchanged. Shift Component only changes what a limit rule can be checked against after that combining has happened.
Getting Help
If you experience issues or have questions about the Shift Component period:
Review this guide for configuration and troubleshooting information.
Contact your system administrator for award policy configuration questions.
Check which limit rules in your award policy use the Shift or Shift Component period.
Contact support if you need assistance with configuration or calculations.
Summary
Limit rules can now use a new period, Shift Component, to apply a limit to each individual timesheet within a merged overnight shift, rather than only to the shift as a whole.
This is currently implemented on limit rules only.
Does not apply to shifts entered as a single timesheet.
Does not apply to shifts entered as multiple timesheets.
Must be explicitly configured on the relevant rules; existing rules using Shift or other periods are unaffected until changed.
No retrospective recalculation of historical pay runs is provided.