Cocoon SDA: NDIS disability support staff lose jobs in savage email

Outraged staff, some who have waited months to be paid and are struggling to pay mortgages, have found out that their scandal-hit employer Cocoon SDA is laying them off.

Disability support staff employed by banned NDIS provider Cocoon SDA Care have lost their jobs effective immediately, according to a company email sent to workers in Victoria.

Staff were already in the lurch with many unable to pay mortgages and fearing they would lose their homes due to not being paid for more than two months as Cocoon’s finances were frozen under a fraud probe. 

Then, on Friday, staff received a sickening email alerting them that they had lost their jobs.

“It is with deep regret that I write to inform you of a decision that has become necessary due to recent developments impacting Cocoons SDA Care,” the message read.

“The company has experienced a significant and unforeseen loss of business and, in addition, has been suspended from operating under the National Disability Insurance Agency (NDIA). These events have severely affected our ability to deliver services and retain staff.

“After careful consideration and having explored all viable alternatives, we must inform you that your employment with Cocoons SDA Care will cease effective immediately.”

Cocoon’s website says it has more than 600 specialist disability homes across all states and territories.

Workers were told that all outstanding payments and entitlements owed would be “processed and issued in due course”.

“Wishing you all the best in your future endeavours,” the email concluded.

Simone, who wished to remain anonymous, was outraged when she received the email on Friday.

“They owe me around $10k in loss wages that I worked for, this isn’t included owed super, or even leave hours,” she said.

“No pay, nothing, I’m personally at risk of being homeless with no job.

“Then they send this email. Disgusting behaviour from a company.”

Corporate strategist for Cocoon SDA Zaffar Khan said approximately 1200 staff had been impacted nationally, with the largest concentration in Victoria.

“This has been an incredibly difficult decision, made only after exhausting all other options,” he said in a statement provided to this masthead.

“We deeply regret the distress this situation has caused and continue to call for an urgent and fair resolution with the NDIA.”

Corporate strategist for Cocoon SDA Zaffar Khan says approximately 1200 staff have been impacted nationally, with the largest concentration in Victoria. Picture: Supplied

Mr Khan confirmed all entitlements and outstanding wages would be paid to staff, but “financial constraints” imposed by the NDIA’s suspension and the withholding of payments had “significantly limited our ability to act as swiftly as we would prefer”. “We are actively working with our legal and financial teams to resolve this and ensure that every staff member receives what they are owed as soon as possible,” he said.

Previous company emails revealed how Cocoon SDA had strung along hard working support workers, claiming to have paid staff, however the money never landed in their account.

Stephen Cooper, who worked for Cocoon in Melbourne’s west, told this masthead last week that he was struggling to pay his mortgage after being shortchanged more than $13,000.

“I’ve got my home loan, my car loan and a personal loan and I can’t pay them,” Mr Cooper said.

“Two of my kids didn’t go to school today because they couldn’t afford the bus fare. My youngest is not going to childcare because we can’t pay the fees.”

Stephen Cooper, who worked for Cocoon in Melbourne’s west, says he is struggling to pay his mortgage after being shortchanged more than $13k

Mr Cooper said he had been calling Cocoon SDA repeatedly to get paid for 304 hours of work, including superannuation.

The NDIS Quality and Safeguards Commission on May 7 said it had suspended the registration of Horizon SolSolutions, which trades as Cocoon SDA Care, for 30 days from May 9.

“NDIS Commission officers recently conducted targeted site visits and identified serious safeguarding concerns,” acting deputy commissioner Mahashini Krishna said.

“The site visits also confirmed information the NDIS Commission had received recently from several concerned persons.

“The NDIS Commission is committed to ensuring the safety and wellbeing of NDIS participants and will not tolerate misconduct by providers that puts participants at risk,” Ms Krishna said.

The suspension prohibits Horizon from providing some National Disability Insurance Scheme services.

Cocoon’s website says it has more than 600 specialist disability homes across all states and territories.

Originally published as Cocoon SDA: NDIS disability support staff lose jobs in savage email