‘Who can afford to work for free?’: Taylors Lakes educators speak out on Genius Childcare scandal

Devastated childcare workers who haven’t been paid for weeks have been dealt another blow, with a third Genius Childcare subsidiary entering administration on Wednesday afternoon.

Genius Childcare Taylors Lakes staff have detailed the emotional and financial toll they’re enduring after not being paid.

Devastated childcare workers who haven’t been paid for weeks have been dealt another blow, with a third Genius Childcare subsidiary entering administration on Wednesday afternoon.

WLP Restructuring has been appointed as administrators of Abacus 49 Pty Ltd, the owner and operator of a dozen Genius Childcare early learning centres, including one in Taylors Lakes.

It’s also responsible for centres in Queensland, NSW, the ACT, and Western Australia.

Nicholas Charlwood, Alan Walker and Glen Livingstone will take over the company’s operations for the 12 centres, with their appointment coming two days after administrators took control of sister company Vertical 4 Pty Ltd.

In a statement, WLP Restructuring said the appointment brings the total number of Genius Childcare early learning centres under its control to 25.

“All 12 centres will remain open, with the administrators taking over the centre operations,” the statement said.

“In line with the administration process for Vertical 4, the Administrators will continue to trade the centres on a business-as-usual basis while urgently assessing the financial affairs of Abacus 49.

“The Administrators’ intention is to commence the process to sell or recapitalise the entity.”

The five team members allege they’re owed more than $18,000 in unpaid wages.

Staff at the Taylors Lakes centre, who spoke to the Herald Sun on the condition of anonymity last week, feared Abacus 49 Pty Ltd would enter administration after they were not paid for four weeks.

They made the decision to close the centre on February 27 as they could no longer pay for goods and services, and it wasn’t viable for them to “work for free”.

It’s not known at this stage whether they will reopen now they have gone into administration.

The FairWork Ombudsman is also investigating the subsidiary and wider Genius Childcare group – which is run by director Darren Michael Misquitta – after staff made complaints about their employer.

A third Genius Childcare subsidiary Horizontal Pty Ltd went into administration last year, with a statutory report by B K Taylor and Co liquidator Paul Vartelas, stating it has an asset deficiency of more than $18.5m.

Mr Misquitta has not responded to the Herald Sun’s attempts to contact him.

One Taylors Lakes staff member said she was filled with relief after hearing her centre had gone into administration.

“I could not be happier to finally have an end to this tragedy and hopefully get back to some normality … I’m feeling really positive,” she said.

A second staff member said: “hopefully it will mean the workers are taken care of after the diabolical way we have been treated”.

Devastated childcare staff speak out on Genius Childcare scandal

Devastated childcare staff have revealed how they’re borrowing money from their own parents and are digging into their superannuation to afford bills and groceries, after their employer failed to pay four-weeks’ worth of wages.

Educators from national early learning chain Genius Childcare, who were based at the now closed Taylors Lakes centre in Melbourne’s northwest, have detailed the financial and emotional toll they’re enduring as authorities investigate the company.

The centre on the Old Calder Hwy is one of 16 centres owned by Genius Childcare across the state, with a further 29 centres operating under the same name nationally, according to its website.

It’s also one of several Genius Childcare providers across the nation in financial turmoil, with multiple of director Darren Michael Misquitta’s businesses being investigated or have gone into external administration after having money problems.

Staff made the “difficult decision” to shut the Taylors Lakes centre’s doors on February 27, as they could no longer afford to pay for goods and services and it wasn’t viable for them to continue “working for free”.

The five team members, who spoke to the Herald Sun on the condition of anonymity in fear of retribution, allege they’re collectively owed more than $18,000 in unpaid wages from the company.

The Taylors Lakes centre is now shut as it wasn’t viable for staff to continue “working for free”.

Some members of the Taylors Lakes team have resorted to applying for new jobs, while others have been left in the lurch over the centre’s future.

All of them said they were waiting on four-weeks’ worth of wages and counting.

“With no income coming in, I feel completely stuck. My savings aren’t enough to cover everything,” one staff member said.

“Meanwhile, pay slips are still being generated, tax is still being deducted, but there’s no actual money being received.

“Families are blaming staff (for closing), assuming we are being unfair, but in reality – who can afford to work for free?”

Another staff member said the company’s failure to pay her has put a halt on plans to build her family a house.

“We’ve received absolutely no communication from (the company) and we’ve basically been left in the dark,” she said.

Her partner added: “I see her break down daily, so I’m worried about her mental and physical health more than anything else at the moment.”

A third educator is attempting to access her superannuation so she can pay for bills and groceries, while a fourth has had to ask her parents for money so she can meet her mortgage repayments.

Another staff member on maternity leave doesn’t know if she’ll get her leave entitlements.

The Herald Sun can also reveal these staff members had to put their own health and safety at risk prior to the centre closing, as they couldn’t afford to pay maintenance workers or cleaning staff.

One staff member said they were required to fix any maintenance issues themselves and were also required to clean areas usually tended to by cleaners.

“We used to have two incursion companies that would come in and do a weekly program with the children but that got cancelled due to no payments,” the staff member said.

“Other centres haven’t been able to get Woolworths deliveries or nappy disposal services – all that stuff has been cut off numerous times because (Genius Childcare) hadn’t paid the bills.

“We would get maintenance people in who wouldn’t get paid and then I would be absolutely flooded with debt collectors contacting us for invoices from back in March last year.”

The staff have made complaints to the Fair Work Ombudsman, with a spokeswoman for the regulator saying an investigation into Genius Childcare group, including its subsidiary Abacus 49 Pty Ltd, is ongoing.

“It is not appropriate to comment further at this time,” she said.

Genius Childcare staff have set up a GoFundMe to support their fellow employees who are struggling to purchase essentials such as food and pay bills, or rent.

One of the Taylors Lakes team members who was taking stress leave, said “it was hard watching the last four years of your life go down the toilet over something you can’t control”.

“Early childhood education is already one of the lowest paid industries around, let alone having to try and support a family,” she said.

“There’s really no one we can go to, to support the team.”

The Herald Sun has contacted Genius Childcare and Mr Misquitta for comment.

Originally published as ‘Who can afford to work for free?’: Taylors Lakes educators speak out on Genius Childcare scandal