WorkCover WA devotes significant resources to regulating employers’ compliance with their obligations under the Workers’ Compensation and Injury Management Act 1981 (the Act).
This section provides an overview of your obligations as an employer and the investigation and enforcement activities WorkCover WA undertakes to ensure these obligations are met.Employer responsibilities and penalties for non-compliance
|Legal responsibility||Penalty for non-compliance|
|Maintain a current workers’ compensation insurance policy covering all workers||
|Lodge workers’ compensation claims with your insurer within 5 working days of receiving it from your worker||$1,000 penalty|
|Have an Injury Management System in place||$2,000 penalty|
|Prepare a Return to Work Plan for workers who are injured at work||$2,000 penalty|
|Make weekly payments to your injured worker as directed by your insurer once the claim is accepted||$2,000 penalty per late payment|
Worker previously employed
WOE Engineering enters into a new contract with a welder who was previously employed under a contract of service by the company to weld steel roofing frames.
Under the new arrangement, the welder provides substantially similar services as they did when working for WOE Engineering, but provides those services on behalf of a separate company as a director or employee, working principally for WOE Engineering. The work done is also directly part of the business of WOE Engineering – that is, metal fabrication.
If an injury occurs, WOE Engineering will be liable to pay the welder compensation and meet any return to work obligations.
Worker not previously employed
Morrissey Cleaners calls for tenders from incorporated companies to provide cleaning services to its clients. Morrissey Cleaners intimates that it is not responsible for workers’ compensation under the contractual arrangement for any company winning the tender for the contract.
An applicant, Mr Treeney, forms a company named PB Pty Ltd, registers himself as the director and PB Pty Ltd wins the contract. While the contract is in effect, Mr Treeney does work principally for Morrissey Cleaners – work that is directly a part of the business of Morrissey Cleaners – that is, industrial cleaning.
If an injury occurs, Morrissey Cleaners will be liable to pay Mr Treeney’s compensation and meet any return to work obligations.
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 $5000 for employers who allow workers to do work for them under an avoidance arrangement
- a $2000 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.
- Educational videos, including videos about workers’ compensation insurance
- Publications about workers’ compensation, injury management, contractors and noise induced hearing loss
- Free quarterly Welcome to WorkCover WA seminars which provide an introduction to the workers’ compensation scheme and WorkCover WA
- Advice and Assistance line – 1300 794 744
- Twitter and Facebook
If WorkCover WA has reason to believe an employer has not met legal requirements, an inspector will investigate as per their authorised functions under section 175B(1) of the Act.
They will provide written or verbal notice to the employer being investigated and must clearly state the power or powers being exercised and for what purpose which 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 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 name and address
- Requiring an employer or any of their workers to provide assistance
Not responding and/or not providing documents when requested may lead to penalties.
Letter of caution
Letters of caution serve as formal warnings to employers and advise that the current offence will be taken into account in determining the response to future non-compliance.
Where an employer has previously received a letter of caution and further non-compliance is detected, an infringement notice will be issued or prosecution will be commenced.
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 may:
- Apply to WorkCover WA for limited extensions of time to pay (there is no option to pay by instalments)
- Elect to have the matter dealt with in court
- Request the infringement be withdrawn if there is information that demonstrates a breach did not occur.
If an employer does not hold the required insurance cover it can be prosecuted through the Magistrates Court and penalised up to $5,000 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, 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 (DPP) and published in the Western Australian Government Gazette on 3 June 2005.
The information provided above should not be viewed as a substitute for legal advice regarding employer duties and obligations under the Workers’ Compensation and injury Management Act 1981. Employers are encouraged to seek legal advice if they become subject to investigation and enforcement action.
WorkCover WA publishes the outcomes of prosecutions against employers and employees who have not met their obligations under the Workers’ Compensation and Injury Management Act 1981.
The details of prosecutions are outlined below.Recent prosecutions
|Summary of Offence||Date of Decision||Fine||Costs||Avoided Premium Ordered||Total|
|MANUFACTURING INTELLIGENCE PTY LTD||170(1); 170(2) WCIM Act||During the period of 20 May 2020 to 30 August 2021, the offender operated a software manufacturing business and employed workers without a policy of workers’ compensation in place.||11/01/2023||$10,000.00||$788.30||$4,868.36||$15,656.66|
|FREEDOM COUTURE PTY LTD||170(1); 170(2) WCIM Act||During the period of 1 July 2018 to 12 April 2022, the offender operated a wig manufacturing and retailing business and employed workers without a policy of workers’ compensation in place.||11/01/2023||$15,000.00||$788.30||$34,048.65||$49,836.95|
|ANTARIA PTY LTD||170(1); 170(2) WCIM Act||During the period of 1 July 2018 to 3 May 2022, the offender operated a cosmetics business and employed workers without a policy of workers’ compensation in place.||11/01/2023||$32,000.00||$788.30||$67,300.85||$100,089.15|
|KOVIA PTY LTD||170(1); 170(2) WCIM Act||During the period of 28 December 2020 to 8 September 2022, the offender operated a restaurant and employed workers without a policy of workers’ compensation in place.||11/01/2023||$10,000.00||$788.30||$9,619.71||$20,408.01|
|GEMSTAR HOLDINGS PTY LTD||170(1); 170(2) WCIM Act||During the period of 1 July 2018 to 6 July 2022, the offender operated a cleaning services business and employed workers without a policy of workers’ compensation in place.||11/01/2023||$8,000.00||$788.30||$53,728.63||$62,516.93|
|GUILDFORD MILK BAR PTY LTD||170(1); 170(2) WCIM Act||During the period of 2 January 2021 to 12 September 2022, the offender operated a cafe and employed workers without a policy of workers’ compensation in place.||23/01/2023||$40,000.00||$788.30||$20,013.02||$60,801.32|
|ALEIAH GREEN||170(1) WCIM Act||During the period of 30 November 2020 to 16 August 2022, the offender operated a home and garden improvement business and employed workers without a policy of workers’ compensation in place.||06/01/2023||$20,000.00||$788.30||$10,202.12||$30,990.42|
See archived prosecutions for prosecutions prior to 2023.