Disability support labour hire provider United Foundation has entered voluntary administration, raising concerns about the future of services for more than 1,000 NDIS participants and the employment security of approximately 480 support workers across New South Wales and South Australia.
The registered charity informed staff this week that administrators from Mackay Goodwin had been appointed in an effort to stabilise the organisation's finances while allowing it to continue operating. The company stressed that administration did not automatically mean closure, but acknowledged that its long-term future remained uncertain.
United Foundation said the decision was driven by several factors occurring simultaneously, including rising workforce costs, delays in receiving NDIS payments, and the impact of new provider registration requirements due to come into effect from July 1. According to an internal message sent to employees, management described voluntary administration as an opportunity to restructure the business while maintaining support services and preserving jobs where possible.
The organisation employs around 480 disability support workers who provide care for participants living in supported independent living arrangements. Many of these employees had previously transferred to United Foundation after the collapse of another labour hire provider, United Employment, which entered liquidation last year owing millions of dollars in unpaid wages, superannuation and employee entitlements.
While administrators have advised that employee wages will continue to be paid during the administration process, 27 staff members classified as non-essential employees were made redundant shortly after the appointment. Administrators said the difficult decision was necessary to reduce operational costs and improve the likelihood of maintaining services for NDIS participants.
The Australian Services Union (ASU) expressed concern about the impact on workers, particularly those who had already experienced financial hardship following the collapse of United Employment.
ASU NSW Secretary Angus McFarland said some employees were still waiting for outstanding entitlements connected to the previous company's failure.
"We're really worried about the same group of workers being churned through the system," he said.
The union has called for stronger oversight of labour hire providers operating within the disability sector, arguing that existing regulatory frameworks have not adequately protected workers or participants.
The administration has also renewed broader debate about the sustainability of the National Disability Insurance Scheme (NDIS) and the financial pressures facing disability service providers.
Administrators from Mackay Goodwin will now assess whether United Foundation can be successfully restructured, sold to another operator or ultimately wound up. During this process, the company says support services will continue and participants should not experience immediate disruptions.
The National Disability Insurance Agency (NDIA) had not publicly commented on the administration at the time of publication.
For the thousands of participants and families relying on disability support services, the announcement has created uncertainty about the continuity of care. For workers, many of whom endured the collapse of United Employment less than a year ago, it has reopened concerns about job security, unpaid entitlements and the stability of Australia's rapidly evolving disability sector.
The outcome of the administration process is expected to have significant implications for both employees and NDIS participants connected to the organisation.
