Large fine for not having workers compensation insurance

Work Safety Commissioner Mark McCabe has imposed a fine of over $100,000 on a Canberra manufacturer for not having workers compensation coverage for its workers.

“While the majority of businesses in the ACT do the right thing, unfortunately some employers do not,” McCabe said.

“Recent changes to the Workers Compensation Act 1951 provide for a range of sanctions if businesses fail to meet their obligations in regard to workers compensation. These sanctions include substantial fines, prosecution and orders requiring the business to cease trading. In addition, businesses may be required to pay up to twice the premium avoided by not having insurance coverage - an amount that can be recovered for up to five years of non-insurance.

“When it is clear that employers are not complying with their legal requirements regarding workers compensation, we will have no hesitation in taking firm action to rectify the situation.

“Where there is repeated failure to take out a workers compensation policy, the law provides that we can close down the business until they do so. Unfortunately, in some cases we have had to take this action to have businesses comply.

McCabe indicated that having workers compensation insurance for their employees is a basic requirement for any business, not only in Canberra, but across Australia.

“Any business that thinks they can avoid taking out such insurance should take note that they run the risk of facing serious sanctions by doing so. I urge all businesses to be diligent in making sure that they have the required workers compensation coverage,” concluded McCabe.