COURT ACTION FOLLOWS LATE PAY, MISSING SUPER, MASS RESIGNATIONS
Dec 31 2024
United Workers Union.
A Federal Circuit Court action lodged as a test case seeks to recover money for low-paid early educators, among hundreds of workers across five states owed unpaid superannuation worth an estimated $7 million* by early childhood education and care provider Genius Childcare.

The United Workers Union court action lodged last week adds to issues facing Genius, which operates 39 centres in all mainland states and the ACT with about 850 employees, including mass resignations from centres in the ACT and NSW due to late-paid wages and unpaid super, causing centre collapses in the ACT and end-of-year chaos for families and children.

The Federal Circuit Court action claims compensation for unpaid superannuation, late wage payments and financial penalties for breaches of the Fair Work Act on behalf of early educators in Victoria and Queensland.
The fines sought across six alleged breaches of the law are up to $18 million against Genius Education Group and two subsidiaries, and almost $1.2 million against its sole director Darren Misquitta – capping a turbulent couple of years for Genius as it has faced angry landlords, furious workers and disappointed families as it repeatedly fails to pay its bills on time, or sometimes at all.   

Interests owned by Mr Misquitta have a poor track record including the pursuit by a landlord for a $9 million rent bill on a Melbourne Collins Street property and a mortgagee-in-possession sale of a Mornington Peninsula Estate.

Families are scrambling to find alternative early education and care in NSW and the ACT as Genius Centres are unable to find staff due to late pay and unpaid superannuation, with some centres closing because of mass staff resignations.

QLD Early Educator Felicity says working for Genius was incredibly stressful:

“Every fortnight our pay was late. It was supposed to be in our accounts Friday but was usually Monday and sometimes Tuesday. My mortgage payment is due Monday and I was always worried. I’ve had payments dishonoured.   

“The churn of educators starting and leaving the centre was terrible.

“There was a constant cycle of new educators starting, because they didn’t know what it was like. It affected the children, new faces all the time, losing connections with the people they knew.

“I’d tell a new educator to run a mile from Genius.

“They forget we’re people too, with bills to pay, kids to get through school.I understand it’s a business, but without education and educators, it’s not a business.”

United Workers Union National President Jo Schofield said Genius had failed to live up to its responsibilities to families, children and early educators:

“Members backed by United Workers Union are taking court action to fight for unpaid super and late wages, and this will stand as a test case for hundreds of other workers at Genius.   

“It’s about a company breaching its most basic legal duties to the workers who keep their doors open.

“The issue we see with cowboys like Genius in early childhood education and care is that there are poor outcomes for families, children and early educators.

“Clearly a for-profit company that is failing to meet the most basic legal requirements towards early educators is incapable of offering the environments that families and children deserve in a quality early childhood education and care setting.

“This is why we have repeatedly called for universal care in the early years, to provide the best possible framework for children and families to experience the benefits of early learning.

* Unpaid super estimated based on 39 centres requiring 850 employees with an average annual wage of $60,500 facing unpaid super of $7.5 million since July 1, 2023.