The labor-hire company United Employment, which supplied staff for the National Disability Insurance Scheme (NDIS), has collapsed, affecting approximately 480 staff in New South Wales. The company entered voluntary administration in June, with workers alleging unpaid superannuation and other entitlements.
Company Collapse and Worker Impact
Senior disability support worker Nathan Secomb reported that superannuation payments ceased from November until the company's collapse in June. Upon United Employment entering administration, workers were offered transfers to a new entity within the same business structure, with a less than 48-hour deadline to sign new contracts.
Workers were reportedly offered a "consideration payment" equivalent to two weeks of owed wages if they signed the new contracts. However, this offer did not include recognition of outstanding superannuation, leave, or other entitlements. A company spokesperson stated the short timeframe was "unavoidable" to maintain service continuity for NDIS participants and uninterrupted income for staff.
Stephanie Shoobert, another worker, stated that over 130 hours of her accrued leave were not recognized by the new contract. She alleges significant unpaid superannuation and tax, estimating a total loss of approximately $10,000. Conversely, a United Foundation spokesperson claimed no awareness of any outstanding wages owed to employees from that period, stating all salaries were paid on time and in full.
Financial Irregularities and Investigations
An administrator's report by Olvera Advisors indicated that United Employment, in operation for less than a year, owed employees over $6 million in wages, superannuation, and other entitlements at the time of its collapse. The company also failed to pay over $5 million to the Australian Tax Office. United Employment is now in liquidation.
The report revealed that United Employment functioned as the labor hire arm for We United Aus (WUA), which publicly operates as United for Care and receives federal government NDIS funding. Administrators reported that United Employment routinely failed to invoice WUA for all payroll costs, including PAYG tax and superannuation, instead billing only for net wages. Preliminary investigations suggest the company "may have been insolvent from inception" due to this failure to invoice for all payroll costs, which left it with insufficient funds to meet its statutory obligations.
Angus McFarland of the Australian Services Union is representing affected workers in the liquidation process, seeking to recover the estimated $6 million in missing entitlements.
Broader Sector Scrutiny
Fair Work Ombudsman Anna Booth confirmed an ongoing investigation into outstanding entitlements owed to former United Employment workers. Ms. Booth stated that inquiries regarding missing pay and superannuation in the disability sector have significantly increased over the past five years, with 75,000 inquiries resulting in over $68 million recovered for workers.
The Fair Work Ombudsman is currently investigating over 100 disability support service providers and conducting a broader inquiry into workplace experiences within the sector. Fiona MacDonald, Interim Director of the Centre for Future Work, observed that the NDIS has transformed disability work from a community-based model to a fragmented, largely unregulated free-market system. There are now approximately 270,000 service providers, with less than 10% registered with the National Disability Insurance Authority (NDIA).
MacDonald highlighted concerns about the changing worker profile, which includes more casual, younger, and less-experienced staff. She noted that the current system may not provide adequate protection for workers or clients.