Aged care, disability, and veterans care service provider Annecto Incorporated has entered voluntary administration, raising concerns over entitlement payouts for hundreds of staff. The organization, which previously announced it would cease its community services by the end of July, has now confirmed its insolvency status, according to administrators McGrathNicol.
This decision has left many employees and clients in a state of uncertainty. A Melbourne-based Annecto worker expressed fears of having to bid farewell to up to two-thirds of their clients. In a letter to staff, administrators indicated that all employees would be made redundant. Should there be insufficient funds to cover wages, entitlements, or redundancy packages, payments would be made on a pro-rata basis. In the event of liquidation, employees could seek payouts under the federal government’s Fair Entitlements Guarantee Act.
Impact on Workers and Clients
The sudden collapse of Annecto has left its workforce facing difficult choices. Most support workers serve a diverse clientele, including aged care, NDIS, and veterans affairs. The abrupt end to these relationships has been particularly distressing, as highlighted by a Melbourne-based carer who chose to remain anonymous. They noted that without a precise stop work date, work hours were dwindling as clients transitioned to new providers, leaving workers under financial and emotional strain.
“The veterans’ clients have already been transitioned to other providers — they’re gone,” the worker lamented. “You build a rapport, you build a routine, you know where you’re going every day. It’s very jarring for people to break that routine and go into a bunch of different houses and have to restart.”
Client Concerns and Continuity of Care
Peter Smith, a Melbourne-based Annecto client, is among those deeply affected. With specific needs due to a long-term brain injury and post-polio syndrome, he fears losing contact with support workers who understand his requirements. “I feel devastated,” Mr. Smith shared. “I have multiple disabilities and my support team … I’ve trained them up to be aware of my needs.”
“The opportunities for staff to move with any of the clients they look after is really up to the new provider to assist with that transition,” said Annecto’s interim chief executive Tyrone McCuskey.
McCuskey emphasized that the continuity of care depends on the new providers. “The clients all have choice and control and they have a choice in provider and choice in the individuals who support them,” he stated. He encouraged clients like Peter to discuss continuity of care with their new providers.
Future Prospects and Industry Implications
The collapse of Annecto highlights the precarious nature of the care service industry, where financial instability can have widespread repercussions for both workers and clients. The situation underscores the need for robust financial oversight and support mechanisms to ensure continuity of care and job security in similar organizations.
As Annecto works to transition its clients to new service providers by the end of July, the focus remains on maintaining the quality and consistency of care. The broader industry will be watching closely, as this case may set a precedent for how similar situations are handled in the future.
Meanwhile, affected workers and clients are left navigating the uncertain terrain, hoping for a seamless transition and the preservation of essential support networks.
