The company, which provides in-home and respite care, allegedly billed the State Government for work it never did and left employees in dangerous situations, according to The Australian.
The SA Government terminated its agreement with the Adelaide-based company on October 18, the same day the newspaper raised questions about its conduct.
The business, which employs 300 support workers across SA and had a turnover of $13M this year, is alleged to have underpaid staff for at least nine months, while failing to pay super in some cases.
The Australian reports the government first became aware of a practice at the company to send one support worker to clients who required two when an employee was falsely accused of assault in 2014.
The same staff member also said Caring Choice didnt develop care plans for clients and employees turned up to clients with different disabilities than had been listed.
Documents obtained by the newspaper also showed the company underpaid its staff after being unaware of a change that increased weekend penalty rates for casual staff for almost a year.
CEO and founder Michael French has promised to respond to a November 16 deadline to show cause and that superannuation money owed to staff would be brought up to date by the end of the month.
Caring Choice was just bought out by allied health provider Zenitas, along with four other providers, for $30M, but its understood Mr French and management were staying in place.
SA passes new Retirement Villages Bill after extensive three-year enquiry
The newly revised Act will ensure residents who leave a village are paid out for their unit within 18 months, regardless of when it is relicensed.
Residents will also be allowed to keep living in their unit while it is being relicensed instead of being forced to move out.
The Bill also makes provisions for operators who are having trouble meeting their statutory repayments to residents by allowing them to seek an extension through a tribunal.
With over 25,000 residents across 530 villages, SA has the most retirement villages per head of population in the country.
The new Bill was finally passed through State Parliament last week after an exhaustive consultation with residents, providers and ACSA.
