Aged care, disability and veterans care service provider Annecto Incorporated has entered voluntary administration, putting entitlement payouts for hundreds of staff in doubt.
Last month Annecto, which has more than 1,000 employees and 4,400 clients across four states, announced it would stop its community services by the end of July.
On Monday, the Annecto board put the organisation into voluntary administration, saying the organisation was either insolvent, or was likely to become insolvent in future, according to administrators McGrathNicol.
A Melbourne-based Annecto worker worries they may have to farewell up to two-thirds of their clients. (Supplied)
In a letter to staff, the administrators said all staff would be made redundant, and if there were insufficient funds to pay all wages, entitlements or redundancy packages, they would be paid on a pro rata basis.
If the organisation went into liquidation, McGrathNicol said employees could apply for payouts under the federal government’s Fair Entitlements Guarantee Act.
‘Bit scary’ for Annecto workers
An Annecto carer based in Melbourne, who asked to remain anonymous out of concern for future job opportunities, said no precise stop work date had been given to staff, but work hours…