The collapse of United Employment, a labor-hire company, has left disability workers in New South Wales facing a significant financial shortfall. The company, which employed around 480 staff, owed employees over $6 million in wages, superannuation, and other entitlements when it went under. This includes a failure to pay superannuation, which was a critical warning sign for workers.
Senior disability support worker Nathan Secomb, who had previously witnessed a similar situation with another NDIS provider, noticed the signs of financial trouble early on. The company's offer for workers to move to a new entity within 48 hours, with less than 48 hours to sign up, was met with skepticism. The new contract included a "consideration payment" for the value of the previous two weeks' wages, but without superannuation or recognition of outstanding leave and entitlements.
This transition left workers in a vulnerable position, with some, like 28-year-old Stephanie Shoobert, facing a devastating financial hit. Shoobert, who worked at a supported living home, had accrued over 130 hours of leave, which was not recognized in the new contract. She alleges that superannuation and tax were not paid, resulting in a loss of around $10,000.
The administrators' report revealed a complex business structure involving multiple companies, with United Employment operating as the labor hire arm for a private NDIS-funded provider, We United Aus (WUA). The company failed to invoice its clients, leading to significant debt and a failure to meet statutory obligations. This has resulted in a loss of workers' entitlements, with the Australian Services Union representing affected workers in their efforts to recover what is owed.
The Fair Work Ombudsman, Anna Booth, confirmed an investigation into outstanding entitlements owed to former workers. The regulator has seen a significant increase in complaints about missing pay and superannuation in the disability sector in the past five years, recovering over $68 million for workers. The NDIS has shifted disability work from a community-based model to a vast, fragmented, and largely unregulated free-market model, with a growing number of providers, many of which are for-profit companies. This shift has led to a need for better regulation and protection for workers and clients in the sector.
