Penalties for not holding workers' compensation insurance

What are the penalties for not complying?

Any employers who do not hold a current workers compensation policy may be issued with an infringement notice. WorkSafe ACT inspectors can issue infringement notices for non-compliance to a person or a corporation. A Default notice will be issued requiring the employer to obtain a policy within ten (10) days of the date of the notice.

If, after 10 days, a policy is not obtained, a second default notice will be issued with an additional infringement notice. If after a further 10 days (a total of 20 days), a policy has not been obtained, a cease business order will be issued, stating 5 days before the business must cease trading, along with another infringement notice. If the employer continues to trade without a policy, they can be criminally prosecuted.

A Notice of Decision will be given to the employer, who then has 28 days to either seek withdrawal, dispute liability or request an extension of time to pay. If the employer does not make a request within the 28-day period, an invoice will be sent for payment.

If a penalty due on an infringement notice is not paid and no request for an extension, withdrawal, or application to dispute liability is received within 28 days, a reminder notice may be issued. A reminder notice has an added cost on top of the original notice amount to cover the cost of delivering the notice.

Options for penalties

Pay the penalty

Payments can be made either by bank transfer (preferred method) or in person. If the infringement is paid by the due date no further action will be taken and no conviction will be recorded. Please note that receiving an infringement notice or reminder notice does not stop an employer from being prosecuted for any other infringements under the legislation.

If an employer can prove the infringement(s) would cause financial hardship the employer could request, in writing, a payment plan.

Request an extension of time to pay the penalty

If a person or corporation wants to apply for an extension of time to pay the penalty, they must write to WorkSafe ACT within 28 days from the date the infringement notice was issued. WorkSafe ACT will then respond whether the request has been accepted or rejected. If accepted, they will be notified of the new time period for payment. If the request is rejected, they will be informed of the outcome and the reasons for that decision. If a request is rejected then the penalty must be paid within 7 days after the day they are told of the rejection, or 28 days after the date the infringement notice was issued, whichever is later.

Apply to withdraw the infringement notice

A person or corporation can request for a withdrawal of an infringement notice by applying in writing to WorkSafe ACT, explaining the reasons they believe a withdrawal is reasonable, this must be within 28 days from the date the notice was issued. WorkSafe ACT will then respond about the outcome of the request, and if the request is refused, the reasons for that decision. If the request is refused the penalty must be paid within 7 days after the day they are told of the refusal, or 28 days after the date of service, whichever date is later.

Disputing liability

A person or corporation can also dispute legal responsibility for an infringement notice or reminder notice within 28 days of receiving the notice or within their approved extension time This application must be in writing, addressed to WorkSafe ACT and set out the reasons for arguing liability.

If a person or corporation disputes liability, WorkSafe ACT may refer the matter to the ACT Magistrates Court for hearing. If the matter goes to Court and the Court finds against the person or corporation, the result could be a conviction for the offence and may mean added penalties, costs and court orders.

Consequences for refusing to pay

If no action is taken on an infringement notice in the required time, a reminder notice may be delivered, adding an additional cost. If, within 28 days of the issue of a reminder notice, the penalty has not been paid and the employer has not taken any action, the employer may be prosecuted in Court for the offence. If the Court finds against the person who the notice was issued to, the result could be a conviction for the offence as well as the penalties and costs from the Court.