WorkCover WA devotes significant resources to regulating employers’ compliance with their obligations under the Workers Compensation and Injury Management Act 2023 (the Act).
This section provides an overview of employer obligations, and the investigation and enforcement activities WorkCover WA undertakes to ensure these obligations are met.
The penalties for employer non-compliance are outlined below.
| Legal responsibility | Penalty for non-compliance |
| Employer liable for compensation | $10,000 |
| Insured employer must give claim to insurer | $5,000 |
| Claims on uninsured employers | $5,000 |
| Requirements for provisional payments | $10,000 |
| Obligation to pay income compensation | $5,000 |
| Reducing, suspending and discontinuing income compensation | $10,000 |
| Notice to worker that 60% of general limit reached | $5,000 |
| Compensation claims to be referred to CEO | $5,000 |
| Claims procedure: insured employer | $5,000 |
| Deductions from wages towards compensation not lawful | $10,000 |
| Implementation of settlement agreement | $10,000 |
| Employer must establish injury management system | $5,000 |
| Duty of employer to establish and implement return-to-work program | $5,000 |
| Employer must provide position during incapacity | $10,000 |
| Host must cooperate with labour hire | $5,000 |
| Dismissal of injured worker | $10,000 |
| Powers of approved permanent impairment assessors | $5,000 |
| Requirement for employers to be insured and information to be provided by employer to insurer | $10,000 |
| Records to be kept by employer | $5,000 |
| Certificate of currency | $5,000 |
| Employer’s duty to assist WorkCover WA | $15,000 |
| Relevant documents | $5,000 |
| Power to require auditor’s certificate | $15,000 |
Some employers may attempt to engage in ‘avoidance arrangements’ to try to avoid their liabilities under the Act. That is, they may ask individuals to incorporate (set up their own company) as a condition of getting a contract for work. Employers commit an offence by engaging in these arrangements.
Fines and penalties
Costs for engaging in an avoidance arrangement could include:
- the employer being liable to pay workers compensation entitlements in accordance with the Act and meet return-to-work obligations if a worker is injured while working for an employer under an avoidance arrangement
- a fine of $5,000 for employers who allow workers to do work for them under an avoidance arrangement
- a $2,000 penalty may be applied to employers (or insurers) who receive money or indemnity from a worker (or the worker’s company) in respect of any compensation liability the employer has to pay.
WorkCover WA provides resources to help employers understand their obligations. Information is available under the Employers tab on the home page on our website. You can also:
- call our Advice and Assistance Service on 1300 794 744
- watch our educational videos (coming soon) about workers compensation insurance
- read our publications (coming soon) about workers compensation, injury management, contractors and noise induced hearing loss.
WorkCover WA uses data-matching processes to identify potential employers and proactively reach out to inform them of their legal obligation to hold a policy of workers compensation insurance.
To educate employers on their obligations we communicate via:
- SMS
- Post
We recognise scams are a serious concern. WorkCover WA communications will refer to the ABN of the potential employer and advise on the legal obligation to hold a policy of workers compensation insurance.
We will never ask you for any personal information such as your date of birth or bank details. Any links in our communications will be to the WorkCover WA website only.
If you are unsure about the legitimacy of any communications, or have any questions about your obligations, contact our Advice and Assistance Service on 1300 794 744.
The CEO may designate staff as inspectors. Inspectors conduct investigations into potential breaches of the Act.
If we have reason to believe an employer has not met their legal obligations, an inspector will investigate as per their authorised functions under the Act.
Inspectors will provide written or verbal notice to the employer being investigated. If the investigation includes a site visitation, the inspector will identify themselves and produce their identity card before exercising a power and must clearly state the power(s) being exercised and for what purpose. These include:
- entering, inspecting and examining any place where it is suspected workers may be employed or books, accounts, documents or records required to be inspected may be held
- conducting investigations and taking recordings as necessary to ascertain whether there has been compliance with the Act
- interviewing any person who the inspector has reasonable grounds to believe is able to provide information that may be able to assist the inspector to perform a function under the Act
- requiring people to verify statements by signing a statutory declaration form
- requiring auditor certification of remuneration paid to workers
- requiring any person to state their full name, date of birth and address
- requiring any person at the place to give the inspector reasonable help to exercise the inspector’s powers
- seizing any thing at the place that is or may afford evidence of a contravention of the Act.
Not responding and/or not providing documents when requested may lead to enforcement actions.
Breaches of the Act will result in the following enforcement actions:
- caution notice
- infringement notice
- criminal prosecution.
Caution notice
Caution notices serve as formal warnings to employers and advise that the current offence will be considered in determining the response to future non-compliance.
Where an employer has previously received a caution notice and further non-compliance is detected, an infringement notice will be issued, or prosecution will be commenced.
Infringement notice
Infringement notices are issued with a modified penalty as specified in WorkCover WA regulations. A modified penalty is a penalty which is not imposed by a court. Paying a modified penalty is not an admission of guilt for the purposes of any proceedings, whether civil or criminal.
If an employer receives an infringement notice, they will need to:
- pay the full amount, or
- apply to WorkCover WA for limited extensions of time to pay (there is no option to pay by instalments), or
- elect to have the matter dealt with in court, or
- request the infringement be withdrawn if there is information that demonstrates a breach did not occur.
If the infringement is not paid, the employer may be prosecuted or enforcement action may be taken under the Fines, Penalties and Infringement Notices Enforcement Act 1994.
Under the Fines, Penalties and Infringement Notices Enforcement Act 1994 some or all of the following action may be taken:
- driver’s licence may be suspended
- vehicle licence may be suspended or cancelled
- disqualified from holding or obtaining a driver’s licence, or number plates removed
- details may be published on a website
- earnings or bank accounts may be garnished
- property may be seized and sold.
Prosecution
If an employer does not hold the required insurance cover they can be prosecuted through the Magistrates Court and penalised up to $10,000 for each worker employed. Additionally, an amount equal to the total of any avoided insurance premium payments which would have been payable during the period of 5 years before the conviction may also be payable. Corporations, as defined by the Corporations Act 2001, may be subject to greater penalties.
WorkCover WA’s prosecutorial discretion is guided by the Statement of Prosecution Policy and Guidelines issued by the Director of Public Prosecutions.
More information can be found at Statement of Prosecution Policy and Guidelines.
Legal advice
The information provided above should not be viewed as a substitute for legal advice regarding employer duties and obligations under the Act. Employers are encouraged to seek legal advice if they become subject to investigation and enforcement action.
For more information, employers can contact:
View Quarterly Compliance Update – JAN, FEB, MAR 2026
Past editions:
Quarterly Compliance Update – OCT, NOV, DEC as PDF
Quarterly Compliance Update – JUL, AUG, SEP
Quarterly Compliance Update – APR, MAY, JUN 2025
Quarterly Compliance Update – JAN, FEB, MAR 2025
Quarterly Compliance Update – OCT, NOV, DEC 2024
Quarterly Compliance Update – JUL, AUG, SEP 2024
WorkCover WA publishes the outcomes of prosecutions against employers and employees who have not met their obligations under the current Workers Compensation and Injury Management Act 2023 and the former 1981 Act.
The details of prosecutions are outlined below.
| Name | Section/ Act | Summary of Offence | Date of Decision | Fine | Costs | Avoided Premium Ordered | Total |
|---|---|---|---|---|---|---|---|
| PSNP INVESTMENTS PTY LTD | 204(1) WCIM Act 2023 | During the period of 11 April 2025 to 12 August 2025, the offender operated a cafe and restaurant business, and employed workers without a policy of workers compensation in place. | 27/03/2026 | $19,500.00 | $194.30 | $1,119.80 | $20,814.10 |
| LUXE BOUTIQUE & CO PTY LTD | 204(1) WCIM Act 2023 | During the period of 23 May 2026 to 5 February 2026, the offender operated an other store based retailing business, and employed workers without a policy of workers compensation in place. | 17/03/2026 | $30,000.00 | $194.30 | $3,886.87 | $34,081.17 |
| JING YELLOW RIVER PTY LTD | 170(1) WCIM Act 1981 | During the period of 17 October 2023 to 7 July 2024, the offender operated an allied health services business, and employed workers without a policy of workers compensation in place. | 13/03/2026 | $25,000.00 | $194.30 | $7,894.58 | $33,088.88 |
| EMPOWERING COMMUNITY DISABILITY SERVICES | 204(1) WCIM Act 2023 | During the period of 3 March 2025 to 24 June 2025, the offender operated a social assistance service, and employed workers without a policy of workers compensation in place. | 27/02/2026 | $180,000.00 | $194.30 | $11,701.44 | $191,895.74 |
| DTSA HOLDINGS PTY LTD | 204(1) WCIM Act 2023 | During the period of 1 July 2024 to 26 February 2026, the offender operated a freight forwarding (dog transport) business, and employed workers without a policy of workers compensation in place. | 27/02/2026 | $40,000.00 | $194.30 | $4,182.82 | $44,377.12 |
| 28 WCIM Act 2023 | The offender, being uninsured, failed in their obligation to issue a liability decision notice, in the approved form, to an injured worker within 14 days after receiving a compensation claim. | – | – | – | |||
| SMB BUSINESS ENTERPRISES PTY LTD | 170(1) WCIM Act 1981 | During the period of 21 January 2024 to 29 March 2024, the offender operated a health and fitness centre, and employed workers without a policy of workers compensation in place. | 24/02/2026 | $9,000.00 | $194.30 | $6,756.36 | $15,951.66 |
| ADJUST & ADAPT BUILDING PTY LTD | 515(5) WCIM Act 2023 | The offender failed to comply with a requirement under s515(1). | 20/02/2026 | $7,500.00 | $194.30 | – | $65,694.30 |
| 62 WCIM Act 2023 | During the period of 10 October 2024 to 7 November 2025, the offender reduced, suspended, or discontinued income compensation without authority. | $8,000.00 | – | – | |||
| 47(2)(b) WCIM Act 2023 | During the period of 4 July 2024 to 6 March 2025, the offender failed in their obligation to make subsequent income compensation payments when due. | $50,000.00 | – | – | |||
| CDR BRICKLAYING PTY LTD | 204(1) WCIM Act 2023 | During the period of 14 July 2023 to 20 May 2025, the offender operated a bricklaying business, and employed workers without a policy of workers compensation in place. | 17/02/2026 | $35,000.00 | $194.30 | $22,792.89 | $57,987.19 |
| PILBARA HELPING HANDS PTY LTD | 204(1) WCIM Act 2023 | During the period of 2 November 2024 to 24 August 2025, the offender operated a cleaning service, and employed workers without a policy of workers compensation in place. | 13/02/2026 | $20,000.00 | $194.30 | $6,408.61 | $26,602.30 |
| FIRST CLASS CONCRETE FINISHERS PTY LTD | 170(1) WCIM Act 1981 | During the period of 12 December 2023 to 4 September 2025, the offender operated a concreting services business, and employed workers without a policy of workers compensation in place. | 12/02/2026 | $4,000.00 | $194.30 | $8060.45 | $12,254.75 |
| DANG FAMILY (WA) PTY LTD | 204(1) WCIM Act 2023 | During the period of 1 July 2024 to 17 June 2025, the offender operated a restaurant, and employed workers without a policy of workers compensation in place. | 30/01/2026 | $20,000.00 | $194.30 | $2,651.52 | $22,845.82 |
| DIVERSE CAPACITY BUILDERS PTY LTD | 204(1) WCIM Act 2023 | During the period of 1 July 2024 to 23 January 2025, the offender operated a social assistance service, and employed workers without a policy of workers compensation in place. | 04/02/2026 | $30,000.00 | $194.30 | $19,070.16 | $49,264.46 |
| BASEL JARRARD | 170(1) WCIM Act 1981 | During the period of 25 September 2023 to 27 March 2024, the offender operated a automotive repair business, and employed workers without a policy of workers compensation in place. | 30/01/2026 | $4000.00 | $194.30 | $2841.68 | $7035.98 |
| Withheld | 204(1) WCIM Act 2023 | During the period of 1 September 2020 to 8 July 2024, the offender operated a plastering and ceiling business, and employed workers without a policy of workers compensation in place. | 13/01/2026 | $6000.00 | $189.00 | $49088.78 | $55277.78 |
| TAMATERANGI PTY LTD | 170(1) WCIM Act 1981 | During the period of 10 December 2023 to 30 June 2024, the offender operated a shearing services business, and employed workers without a policy of workers compensation in place. | 6/01/2026 | $39000.00 | $194.30 | $4445.99 | $43640.29 |
| 515(5) WCIM Act 2023 | The offender failed to comply with a requirement under s515(1). | – |
See archived prosecutions for prosecutions prior to 2025.