The lawsuit stands as a 'test case for hundreds of other workers at Genius'
Early childhood education and care provider Genius Childcare is facing a Federal Circuit Court action filed by the United Workers Union that seeks to recover unpaid superannuation and wages for hundreds of early childhood educators.
The union claims that Genius, which operates 39 centres across five states and the ACT, owes an estimated $7 million in unpaid superannuation since July 1, 2023.
The Federal Circuit Court action seeks compensation for unpaid superannuation, late wage payments, and financial penalties for breaches of the Fair Work Act.
The lawsuit targets Genius Education Group, two of its subsidiaries, and the company's director, Darren Misquitta, who could face fines of up to $18 million. Misquitta himself may be liable for almost $1.2 million in penalties.
"[The case is] about a company breaching its most basic legal duties to the workers who keep their doors open," said United Workers Union National President Jo Schofield in a statement.
"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."
According to the union, the situation at Genius has led to poor outcomes for workers, who reported frequent delays in their pay and high turnover.
Felicity, an early educator from Queensland, shared her experience of working for Genius: "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 financial instability at Genius has contributed to high turnover rates, with mass resignations plaguing centres in the ACT and New South Wales.
"The churn of educators starting and leaving the centre was terrible," Felicity said. "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."
The United Workers Union has raised concerns that the company's inability to meet its legal obligations is harming both the workforce and the families relying on its services.
"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," Schofield said.
The lawsuit adds to a growing list of problems for the company, which has seen widespread dissatisfaction among employees. The situation has led to operational disruptions and closures of some centres, affecting families and children in the affected regions.
