Services Australia is reportedly dumping its $343 million Serco call centre deal, and the 610 staff that went with it. 

The call centre employees working for Services Australia are facing job losses as the major contract with international managed services provider and prison operator Serco comes to an end. 

The Australian Services Union has strongly criticised the Albanese government for the mass sackings, with the secretary of the Victorian Private Sector Branch, Imogen Sturni, condemning the lack of notice given to workers. 

The termination of the contract could be a sign of the challenges of managing outsourcing in the public service. 

The Community and Public Sector Union stands to benefit from the reduction in reliance on outsourcers, as employees are expected to be transferred back to direct government employment. 

The agreement with Serco was initially met with opposition, as it was seen as a means to cut wages and undermine the work of public servants. 

The decision not to renew the contract has raised concerns about the capacity of Services Australia to handle call volumes and maintain service quality.

The agency has faced criticism in the past for long wait times and high call abandonment rates. 

The affected staff, most of whom are full-time permanent employees, will be provided with minimal termination payments and only two weeks' notice.