Are your Workers' Comp Policies in place?

Don't be caught out.

WorkSafe ACT Inspectors continue to identify workplaces that have no active workers' compensation policies.

While conducting a recent proactive campaign, WorkSafe ACT found a business that has been operating without a workers’ compensation policy for the past four years. As a result, the business was issued with a premium recovery fine of $170,000.00 for failing to maintain compulsory cover.

This should serve as a great reminder for employers in the ACT. Under the Workers Compensation Act 1951, you must insure your workers against work-related injuries and illness. Failure to do so will result in regulatory action including significant fines.

Employer responsibilities

As an employer in the ACT, you must have an active workers’ compensation insurance policy to cover your workers. You must also have in place an injury management program and make it readily accessible for your workers.

It is important to know that in the ACT, workers’ compensation is not covered under business and public liability insurance.

Sole traders cannot have their own workers’ compensation coverage, but they must have one in place to protect any workers they employ, including apprentices. Sole traders need to organise insurance for themselves through other means, such as income protection.

Any employers who do not hold an active workers’ compensation policy will face regulatory action. This includes infringement notices and premium recoveries. In most cases, WorkSafe ACT will determine a recovery amount that must be paid by the employer. This amount can be up to double the avoided premium (i.e. the amount that would have been paid in workers’ compensation insurance fees over that time period).

WorkSafe ACT's role

WorkSafe ACT regulates the workers’ compensation legislation. As the Regulator, we have a dedicated team that ensures employers and insurers are fulfilling their workers’ compensation obligations by:

investigating employee complaints and proactively auditing businesses to assess compliance with legislation.
referring contraventions for regulatory sanctions and/or prosecutions

overseeing insurer licensing, and
developing educational and other supporting resources.

The ACT workers’ compensation scheme is privately-underwritten by insurers approved by WorkSafe ACT. WorkSafe ACT does not provide workers’ compensation policies.

Further information:

To find out about other ways WorkSafe ACT is working with the Canberra community to improve work health and safety, follow WorkSafe ACT on LinkedIn.