More than a dozen workers have lost their jobs and potentially their entitlements just before Christmas, after Canberra organisation Regional Group Training (RGT) slid into liquidation late last week.
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Many staff were given no notice before last Wednesday that they would no longer have jobs. One employee could be up to $12,000 out of pocket.
The employee, who did not wish to be named, said staff were paid on December 17 and for any additional entitlements they were told they would have to go through the Department of Employment's Fair Entitlements Guarantee (FEG).
"We were just pulled into a meeting and told that was it and it was the last day of trading," the employee said.
It was not clear yet when they would be paid out, the employee said.
The organisation arranges the training of students working in various Canberra companies, many of whom will be forced to find new training companies now so they can finish their study.
Office manager Kim Collins, at cabinet maker CabTek, said the company had taken on an 18-year-old trainee through RGT a year ago and had not yet been formally notified of the change.
Ms Collins said they were likely to keep their trainee but they would have to see out the rest of her pay for the moment. "They have left us in a very bad predicament," she said.
"The trainers [who taught the trainee and were employed by RGT] didn't know. They had no knowledge. If any other company were to terminate an employee with 24 hours notice - it has left sour grapes with us."
Ms Collins was disappointed, especially because CabTek had otherwise had pleasant dealings with RGT and was very satisfied with the quality of training.
RGT operated a registered training organisation, under the name Lyceum Institute of Vocational Excellence, sending trainers to workplaces to deliver sessions to individuals and small groups, an ACT government statement said.
RGT also trained apprentices, through its Australian Apprenticeships Centre.
The ACT government has said it was working with the federal Department of Industry to funnel apprentices affected into other ACT providers, such as Australian Business Apprenticeships Centre, HIA AAC and MEGT.
ASIC said liquidators were appointed on December 17 and a notice on the ACT Education and Training Directorate's website said the organisation ceased trading on December 18.
Michael Jones, managing principal at Jones Partners, the liquidator in charge of the case and processing the FEG applications, said he was yet to review the details of the case.
But he offered some hope to the now former staff members. "Employees may be substantially covered for much of their entitlements, pretty much everything, but superannuation is excluded," he said.
"Employees have the first priority over the assets, then the bank and then unsecured creditors."
Phillip McGilvray is listed as RGT's chief executive on the federal government's training website.
Group Training Association of NSW and ACT executive officer Naomi Dinnen said her organisation did not represent RGT, but others employed in group training had no need to fear for their jobs over the holiday period.
"It has not affected any other group training organisations or apprentices and anyone who is employed by [other entities] should not be worried," Ms Dinnen said.
While she was not aware of the company and could not comment on the reasons behind the collapse, in training it often came down to how a business was managed and what contracts it had, she said.
Despite the personal uncertainty, some staff were philosophical, with one posting on social media that "life will go on and will get better, but not sure just when as yet".
RGT directors were contacted for comment.
