Disability care, employment help at Encompass Community Services switched, current staff owed $1.89m

The latest domino in the Encompass collapse has fallen after the announcement another of its services will stop.

Encompass Community Service administrators Nathan Deppeler, left, and right, Scott Andersen. Both work with Worrells.

More than 35 years of community service from Encompass will end next week when the organisation is axed.

Disability support, employment help, in-home care and some other services run by Encompass will be rescued by genU and gforce but Encompass will close permanently from February 5.

The move will cast doubt on the future of the jobs of about 300 people.

Encompass’s NDIS clients will have the choice to transfer to services run by genU.

Encompass’s farm at Leopold, called The Paddock, which provides day programs for people with disabilities, will shut on February 1.

All participants at the The Paddock have been offered places in genU programs and some staff have been offered new roles.

Staff at The Paddock are trying to start a new venue separate to Encompass.

Encompass went into administration on January 12 and will almost certainly go into liquidation next month.

Administrator Nathan Deppeler from Worrells said Encompass’s financial situation was “not recoverable.”

“This is a sad end for an organisation that has done a lot of good in the community but unfortunately the financial situation is not recoverable,” Mr Deppeler said.

“We know this is a hard time for clients and also for staff. We have been communicating regularly with those impacted and will continue to do so as we work through this difficult time.”

Mr Deppeler said The Paddock was well-known in the community and was a leader in social and therapeutic horticulture in the region.

“We have not been able to find an immediate transitional solution for this valuable community asset so must unfortunately close The Paddock from next Wednesday. We are still working hard to find an alternative solution.

“There has been quite a bit of interest and we are engaged with several interested parties who have sought more information to assist with their decision making.”

The Paddock to shut

The latest domino in the Encompass collapse has fallen after the announcement another of its services will stop.

Day programs for people with disabilities and other services at The Paddock, a six-acre farm at Leopold, will stop on February 1.

The Paddock is likely to be sold off to pay Encompass Community Services’ $4m debt.

Encompass went into administration this month and is likely to go into liquidation next month.

In a Facebook post management at The Paddock said the move was heartbreaking.

“The Paddock is unfortunately coming to an end, last day being next Wednesday 1st February. Some of you may already be aware of this as word travels fast, and for some this is quite a shock,” the post said.

“This is very heartbreaking for our amazing participants who attend The Paddock and see it as a sanctuary and safe place to come to everyday.

“Our wonderful staff are also very sad to be leaving behind what we have all created, along with the participants who have put in so much hard work to make it what has become today.”

“Thank you from the bottom of our hearts to everyone who has supported us over the years, the community groups and individuals, the wonderful participants and families we have created great relationships with and the staff who have put in so much love into what they do.

The Paddock will be truly missed by all of us.”

Crew members from the much-loved facility The Paddock took to social media to announce plans for a new venture separate from Encompass.

Manager at the Paddock Chris Evans said the Facebook page “You and the Paddock Crew” had been set up to follow the early stages of the venture and scope out community interest for a new home.

“It’s going to be an information line we can put out to let people know what is going on in this space,” he said.

We wanted to reach out to the community to see if there’s any support or if anyone had a community space or somewhere we could base ourselves for a little while.”

“We wanted to get some kind of continuation. It’s been a special place that’s allowed participants, staff and families to work together quite closely.”

Service owes millions

Beleaguered community services organisation Encompass, which likely owes more than $4 million to creditors, will get a helping hand from two Geelong organisations which have decided to rescue some of its operation, and provide new jobs to some staff of its 300 staff.

Encompass will have its disability employment services program, which assists about 150 people at four sites, taken over by gforce.

While genU will offer a “substantial portion” of Encompass’ NDIS clients an opportunity to transfer to its services.

The move, and the financial outlook for Encompass, is likely to increase the likelihood the organisation, which has provided services since 1985, will go into liquidation next month.

Encompass, which operates at 16 sites, and has 400 clients, 64 full-time staff, 71 part-timers and 163 casuals, went into voluntary administration on January 12.

According to a preliminary report prepared by administrator Worrells, obtained by the Geelong Advertiser, Encompass as of January 12 owed $1.89m to current staff including 457,000 in backpay; was losing $250,000 per month; owed $1.09m to the tax office; and had $212,000 in the bank.

Encompass has paid current staff more than $500,000 since it began to repay money owed to them in backpay last year, following a six-year wage bungle where employees where paid under the wrong award.

According to Worrells about 400 former staff may be impacted by the wage bungle.

Worrells has received a valuation for Encompass’s six-acre farm at O’Halloran Rd, Leopold but its value was withheld from staff during a meeting this week.

Worrells administrator Nathan Deppeler said genU would continue Encompass’ NDIS support co-ordination, housing, in-home support, options and connections program, and recreation and travel program.

“The choice of NDIS provider is entirely up to the client but with this arrangement all individuals who need to secure continuing services can do so via genU and that’s been our focus,” Mr Deppeler said.

“In conjunction with the transition service of Encompass’s clients, discussions will be held with staff on the front line providing direct client service as these staff are critical to the ongoing delivery of services to their clients.”

Administrator Nathan Deppeler from Worrells

Administrator Scott Andersen from Worrells

Mr Deppeler said it would not be possible for all Encompass staff to be transferred to other organisations.

“We are also in contact with the NDIA to co-ordinate information sessions to assist Encompass’s clients who are seeking an alternative option to the genU proposal, as well as other service providers who have offered to assist where they can to transition the balance of Encompass’s clients.”

gforce chief executive Keith Baillie said it had used Encompass as a subcontractor for its disability employment service (DES) since 2018 across sites at Geelong West, Whittington, Werribee and Bannockburn.

Mr Baillie said the transfer of Encompass’s DES to gforce was immediate and gforce had enough staff to meet demand.

“We appreciate this is a difficult time for participants and their families, and for Encompass staff, and we thank Encompass for its dedication to our community over many decades,” Mr Baillie said.

“Gforce is committed to helping people who live with a disability. We will promptly reach out to participants so we can continue to support their journey into employment.”

Worrells is meeting Encompass staff regularly to provide updates on the administration process.

It has told Encompass staff it will investigate the conduct of the Encompass board in relation to the underpayment of wages, and “potential dysfunction” among board members.

Originally published as Disability care, employment help at Encompass Community Services switched, current staff owed $1.89m