NDIS labour hire company enters administration, 480 jobs in limbo

United Foundation employs about 480 disability support workers for NDIS participants in supported independent living. (Pixabay: Klimkin; licence)

NDIS labour hire provider United Foundation has entered voluntary administration citing rising costs and payment delays from the scheme.

The registered charity took on the labour hire work after company United Employment went into liquidation last year, displacing 480 workers.

The company says worker pay will continue as normal with the administrator expected to contact staff in coming days.

A disability services labour hire company has entered voluntary administration and laid off 27 staff blaming regulatory changes, withheld NDIS payments and rising workforce costs.

United Foundation notified staff this week that administrators from Mackay Goodwin had been appointed in a move it described as a step to "keep trading while we sort the finances out".

The move does not mean the company will necessarily wind up, but it does not guarantee survival either.

The company employs about 480 disability support workers for more than 1,000 NDIS participants in supported independent living settings in New South Wales and South Australia.

Many of the participants were caught up in the shock collapse of United Employment last year.

United Foundation, which is registered as a not-for-profit charity, took on the labour hire work after United Employment went under.

Up to 500 workers are fighting to recoup pay, super and entitlements after the collapse of a large disability support provider operating in New South Wales.

The director of United Foundation, Karim Amin, is separately contesting the validity of ASIC documents that show he was a director of United Employment for eight months. The case is being heard in the Federal Court.

In an internal email to employees Mr Amin said the decision was driven by "three things hitting at once": NDIS provider registration changes due to take effect from July 1, delayed payments from the scheme, and rostering costs exceeding the funding received for services.

"Voluntary administration is the opposite move [to liquidation]. It lets us keep trading while we sort the finances out so the business survives and your jobs continue," Mr Amin said.

The company told workers their pay would continue as normal and that superannuation, leave entitlements and visa sponsorship arrangements would not be affected.

Mackay Goodwin is expected to contact staff in the coming days with a formal notice of the administration to follow.

The administrators said they would continue operating the busine