Gold Coast business fined for failing to provide workers’ compensation

Gold Coast business fined for failing to provide workers' compensation

A Gold Coast business has been fined $38,000 for violating workers' compensation laws, after operating without mandatory cover for several months.

WorkCover Queensland charged the business under the Workers' Compensation and Rehabilitation Act 2003 for failing to carry workers' compensation insurance, a legal requirement for employers across the state.

What happened

"In 2022, it was found that over approximately five months, the Gold Coast business didn't have compulsory workers' compensation insurance in place despite two employees being injured in the period," WorkCover Queensland said.

This meant both workers were left without proper cover at a time when they needed support most. Employers who engage staff, whether as direct employees or as a contractor working under their direction, still carry obligations to maintain appropriate insurance arrangements.

Court outcome

Owner of the business pleaded guilty at Southport Magistrates Court and was fined accordingly. Court also ordered the employer to pay costs on top of the penalty imposed.

This case echoes a similar outcome involving a Melbourne business manager fined for workers' compensation fraud, showing regulators nationwide continue to pursue employers who fall short of their obligations.

Why compliance matters

Businesses operating without workers' compensation insurance expose themselves to significant financial and legal risk. Beyond fines, gaps in cover leave injured staff without timely support, and can damage trust between employers and their teams.

Whether running a small operation or managing a larger workforce that includes a contractor or subcontractor, employers should confirm insurance arrangements remain current and adequate for their workforce size.

Key takeaways for employers include:

• Confirm workers' compensation insurance is active before staff begin work, including any contractor engaged for ongoing tasks.
• Review cover regularly, particularly when staff numbers change or a new contractor joins the business.
• Understand obligations under relevant state legislation to avoid similar penalties.

Employers seeking guidance on managing workforce risk may also find it useful to review related coverage, such as this report on a New Zealand pest control business fined for exposing workers to hazardous substance, or details on the case of a forklift driver sentenced for workers compensation fraud.

Originally published here.