Encompass managers could keep services alive, advice for staff entitlements outlined

Administrators in charge of Encompass Community Services have told staff how thousands in leave and pay might be repaid as its future is considered.

Encompass Community Services chief executive Elaine Robb. Picture: Encompass annual report.

Encompass Community Services managers will be expected to assist administrators to minimise impacts on the organisation’s operations, which including training, job help, and disability care, according to a letter.

Administrators Worrells, which met with some of Encompass’ 300 staff on Friday after the service went into voluntary administration, sent a letter to outline attempts to keep the organisation’s services running.

“(Encompass’s) management team will continue to assist us during the administration process to ensure that disruptions to the ongoing operations and to employees will be kept as minimal as possible,” a letter from Worrells’ administrator Scott Andersen to staff, obtained by the Geelong Advertiser, read.

“The decision to appoint us as administrators followed a prudent concern from the board of (Encompass’s) potential to become insolvent.”

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Mr Andersen told staff owed entitlements they may be able to have those paid out via the federal government’s Fair Entitlements Guarantee (FEG) scheme if the organisation was put into liquidation.

Encompass Community Service office at East Geelong. Inset: Encompass chief executive Elaine Robb, top, and board chair Alyson Miller.

This week Encompass was put into voluntary administration, a step which may lead to liquidation.

“The FEG may be of assistance to you if the association is placed into liquidation at the second meeting of creditors in about 5 weeks time,” Mr Andersen wrote.

“The FEG scheme does not apply while the (Encompass) is under administration.

“The scheme applies to employees whose employment ends as a result of the insolvency of their employer and who have unpaid employee entitlements that are not able to be paid through another avenue.

“In particular, you may be entitled to an advance of the following unpaid employee entitlements: wages up to 13 weeks; annual leave; long-service leave; payment in lieu of notice (up to five weeks); and redundancy pay (up to four weeks per year of service).”

“Superannuation is not dealt with via FEG. The ATO is responsible.”

The Advertiser understands the audit of pay to former Encompass staff between 2015 and 2021 due to start last year had stalled in recent months as Encompass failed to provide data required for a consultant to complete its work.

A long-time Encompass manager said the collapse of the organisation followed management seemingly moving away from its “core business.”

“There’s been no real accountability for anything. The finance team have taken the lead on everything, it seems we have forgotten our core business.”

The manager feared for the future of Encompass services, despite major Geelong disability service provider genU offering to keep some afloat as Worrells look into Encompass’s books.

Lisa Holdsworth, who worked at Encompass for 13 years, said management had “instigated a policy of obfuscation and a lack of transparency.”

“We’ve been trying to get clarity and information (about the wage audit) and it hasn’t been forthcoming,” Ms Holdsworth said.

“The last couple of years have taken a huge mental health toll on its workers.”

This week, before Encompass was put into voluntary administration, management offered staff access to a support program which included counselling.

Encompass chief executive Elaine Robb has not return calls and texts from the Geelong Advertiser this week.

Do you know more? Contact Chad Van Estrop on 0456 841 349 or [e-mail]

Originally published as Encompass managers could keep services alive, advice for staff entitlements outlined