Disability support provider Liviende goes into voluntary administration

Unions and the Tasmanian Government are blaming each other for a disability support provider going into voluntary administration.

Disability support provider Liviende Incorporated employs about 70 direct care workers, mostly in the north of the state.

Last week, the Fair Work Commission dismissed an appeal by Liviende against a finding that some staff were being paid the wrong award rate.

The Health and Community Services Union state secretary Tim Jacobson said Liviende has now gone into voluntary administration.

"The sad fact is that the State Government hadn't funded this organisation to maintain its staffing structure in a way that it could afford," he said.

"And clearly, this is not a pay claim.

"This is a claim that relates to essentially a wrong classification that was applied to the work of individuals."

In a statement, a government spokeswoman said the situation is the outcome of unions choosing higher pay over retaining jobs.

The spokeswoman said the Department of Health and Human Services has a plan to make sure services continue and will work with the administrator on transitional arrangements.