Close to 900 jobs are hanging in the balance after a prominent national labour hire firm collapsed into administration, leaving behind a trail of at least $8m in debt.
Sydney-based Momentum Consulting Group provides on-hire labour services, which involves supplying both temporary and permanent staff across a variety of roles and industries.
They service both national and state-based clients, with their placement staff operating across New South Wales, Queensland, Victoria, Western Australia, South Australia, and the Northern Territory.
Around 800 casual on-hire employees and 93 full-time internal staff are owed over $2m in entitlements, including wages, superannuation, and leave, which could balloon to $4.59m if the company goes into liquidation and all staff are terminated.
The company’s insolvency was primarily triggered by a $3.2m premium adjustment from iCare NSW – a performance-based penalty tied to multiple “maximum claims” lodged between 2020 and 2022 under the Loss Prevention and Recovery Scheme.
Its sole director is now proposing a rescue deal to regain control of the business, despite facing scrutiny over a $250,000 payment made to himself just one day before the collapse.
The company’s sole director, John…