Compensation Compliance and Enforcement ... - WorkSafe Victoria

Information about 

Compensation Compliance 

and Enforcement Policy 

November 2010

Contents 

About WorkSafe 1 

Our vision 1 

Our mission 1 

Our values 1 

Compensation Compliance and Enforcement Policy 2 

WorkSafe’s role 2 

Victoria’s accident compensation laws 2 

Constructive compliance approach 2 

Principles of enforcement 3 

Strategic enforcement priorities 4 

Detecting non-compliance 4 

Return to work inspections 5 

Audits and investigations 6 

Special powers relating to service providers during investigations 10 

Enforcement options 11 

Appendix – Schedule of offences 17 

This publication is protected by copyright.

About WorkSafe 

Our vision 

Victorian workers returning home safe every day. 

Our mission 

Working with the community to deliver outstanding workplace safety, together 

with quality care and insurance protection to workers and employers. 

Our values 

The work we do is important because we impact upon many people’s lives, every day. 

We have a responsibility to ensure that strong values guide us in everything we do. 

WorkSafe Victoria is: 

• Constructive in the way we provide information, advice and service 

• Accountable for what we do and what we say. We live up to our promises 

• Transparent in the way we work; our environment is open and honest 

• Effective by working collaboratively to deliver high quality services 

• Caring by showing empathy in our dealings with everyone we work with. 

WorkSafe Victoria Compensation Compliance and Enforcement Policy 1

Compensation 

Compliance and 

Enforcement 

Policy 

The Compensation Compliance and Enforcement Policy provides an overview 

of how WorkSafe monitors and enforces Victoria’s accident compensation laws 

and incorporates WorkSafe’s general prosecution guidelines, as published in 

the Victorian Government Gazette. The guidelines are available on WorkSafe’s 

website, worksafe.vic.gov.au. 

WorkSafe’s role 

WorkSafe is the manager and regulator of Victoria’s workplace health and safety 

system and workers’ compensation scheme. 

WorkSafe’s overall responsibilities include: 

• monitoring and enforcing Victoria’s occupational health and safety laws 

• helping to prevent work-related deaths, injuries and disease 

• providing adequate and just workplace injury insurance 

• assisting injured workers back into the workforce 

• managing the workers’ compensation scheme by ensuring the prompt delivery 

of services and adopting prudent financial practices. 

This policy relates to WorkSafe’s functions of assisting and compensating injured 

workers in accordance with the workers’ compensation scheme. 

WorkSafe’s functions in relation to preventing work-related deaths injuries and 

disease and enforcing Victoria’s occupational health and safety laws are undertaken by 

WorkSafe’s Health and Safety Division. More information about occupational health and 

safety regulation is available on the WorkSafe website, worksafe.vic.gov.au. 

Victoria’s accident compensation laws 

WorkSafe administers Victoria’s accident compensation laws, which are: 

• Accident Compensation Act 1985 (the AC Act) 

• Accident Compensation (WorkCover Insurance) Act 1993 (the ACWI Act). 

Constructive compliance approach 

WorkSafe applies a strategy of ‘constructive compliance’ – a balanced combination 

of positive motivators and deterrents. The Victorian community benefits both socially 

and financially from an effective and efficient workplace accident compensation 

system. Achieving this goal requires the cooperation and support of all participants 

in the scheme – employers, workers and service providers. Constructive compliance 

recognises the importance of providing all participants with comprehensive information 

and education about their duties and responsibilities. This strategy combines 

encouraging good practices with deterring unacceptable performance. 

2 Compensation Compliance and Enforcement Policy WorkSafe Victoria



Encouraging better performance 

WorkSafe encourages a more efficient and effective workers’ compensation scheme by: 

• communicating and engaging with stakeholders 

• providing practical and constructive advice and information about rights, duties and 

responsibilities under Victoria’s accident compensation laws 

• fostering cooperative and consultative relationships between employers and workers 

• supporting and involving scheme participants in the provision and promotion 

of education and training 

• providing financial incentives for improved performance (eg the Prevention Fund 

and incentives under the premium system). 

Deterring poor performance and scheme abuse 

WorkSafe deters poor performance in relation to workplace injury compensation by: 

• detecting and investigating potential breaches of accident compensation laws 

• taking appropriate enforcement action in response to breaches 

• seeking appropriate sentencing outcomes in prosecutions 

• publishing information regarding the nature and outcome of enforcement actions 

• informing scheme participants of the nature and outcome of enforcement actions 

and providing advice on compliance. 

Principles of enforcement 

In addition to the values that underpin all WorkSafe’s activities, these being that all 

activities should be constructive, accountable, transparent and effective, the following 

principles apply to WorkSafe’s compliance and enforcement activities: 

Targeted – WorkSafe targets its activities to the areas of most need and effect. 

Proportionate – Enforcement action should be proportionate to the seriousness 

of the breach. 

Consistent – A consistent approach should be taken in similar situations or 

circumstances to achieve consistent outcomes. 

Fair – All compliance and enforcement activities (including decision-making) 

must be fair – ie undertaken with impartiality, balance and integrity. In addition, 

all prosecution-related activities must be undertaken in accordance with 

WorkSafe’s general prosecution guidelines. The guidelines are available 

on WorkSafe’s website, worksafe.vic.gov.au. 




Strategic enforcement priorities 

WorkSafe has a clear strategic focus for its compensation-related compliance 

and enforcement activities. WorkSafe targets the following: 

1. The appropriateness of the payments made to workers, employers and 

service providers with a particular focus on dishonest behaviour and practices 

by workers, employers and those who provide services to injured workers. 

2. Failures by employers to comply with return to work obligations set out in 

Part VIIB of the AC Act, including to plan a worker’s return to work, to consult 

about a worker’s return to work and to provide employment to injured workers 

to the extent that it is reasonable to do so. 

3. Behaviours that unduly delay or complicate injured workers’ access 

to entitlements or appropriate treatment, such as failing to make weekly payments. 

4. Inappropriate use of information, especially such as inappropriate use of personal 

and health information about workers. 

5. Discrimination or threats to discriminate against workers when making or 

pursuing claims for compensation or giving notice of injury. 

6. Interference with Return to Work inspectors and other persons authorised to 

exercise WorkSafe’s powers. 

7. Breaches by private investigators of the Code of Practice for Private Investigators 

and surveillance legislation. 

8. Premium evasion and premium avoidance schemes. 

9. Breaches of the AC Act or contractual obligations by self-insurers. 

From time to time, WorkSafe will focus on other areas and will ordinarily publish this 

information on its website, worksafe.vic.gov.au, and/or through the media. 

Detecting non-compliance 

WorkSafe receives complaints from scheme participants and members of the public 

about alleged breaches of accident compensation laws. WorkSafe has a dedicated 

hotline for these complaints: 

Complaints line: (03) 9641 1051 and assessment_centre@worksafe.vic.gov.au. 

WorkSafe also gathers and uses data and scheme information to target particular 

areas of the scheme for proactive compliance reviews, in line with WorkSafe’s 

strategic priorities. 




Return to work inspections 

Return to Work (RTW) inspectors are specially trained inspectors who carry out 

workplace inspections to ensure employers meet their return to work obligations. 

RTW inspectors aim to promote and support employers and injured workers 

to achieve safe and sustainable return to work in the workplace. This includes 

promoting effective occupational rehabilitation of injured workers that leads 

to early, safe and sustained return to work. 

The role of RTW inspectors 

The primary role of RTW inspectors is to ensure that employers comply with the 

return to work part of the AC Act. They are a key part of WorkSafe’s constructive 

compliance strategy. Inspectors carry out their role by undertaking workplace 

inspections to: 

• assess employer compliance with return to work obligations 

• provide advice and education on obligations 

• identify where enforcement action needs to be taken. 

RTW inspectors also have the power to provide advice in relation to other parts 

of the AC Act. 

Actions that can be taken by RTW inspectors 

If return to work obligations under the AC Act are not being complied with, 

RTW inspectors are able to take action to enforce the law using Return to Work 

Improvement Notices. These are written directions requiring a person to remedy 

a contravention of the law within a specified time. Inspectors will reach their 

decision to issue a Return to Work Improvement Notice after making appropriate 

enquiries with the relevant workplace parties. 

Their decisions also take into account: 

• the nature and circumstances of the alleged contravention 

• WorkSafe’s compliance and enforcement policies. 

A RTW Inspector will issue a Return to Work Improvement Notice to the duty holder 

and copies may be provided to the employer’s WorkSafe Agent, where relevant. 

In the event that the notice is in relation to the return to work of a particular worker, 

a copy of the notice will also be provided to that worker by the inspector. 

Further investigation of contraventions may also be undertaken by WorkSafe to 

determine whether the contravention of the AC Act warrants prosecution or some 

other form of enforcement action. This includes circumstances where the employer 

has failed to comply with an improvement notice issued by a RTW inspector. 




Workplace visits 

RTW inspectors visit workplaces for a number of different reasons. Most visits relate 

to workplaces where a worker with a workers’ compensation claim has been unable 

to return to work. Particular priority is given to visiting those workplaces where a 

worker has been certified by their treating health practitioner as having a capacity 

for work, but has not yet been offered suitable employment, where the employer 

may have a legal obligation to provide the worker with such employment. Inspectors 

will also attend workplaces in response to a complaint that an employer is not 

complying with their legal obligations under the AC Act. 

Approach to workplace visits 

Once a workplace has been identified for a visit, a RTW inspector will normally 

contact the employer indicating that a visit will be made to their workplace. If the visit 

involves a particular injured worker’s claim, the inspector will also contact the injured 

worker to give them an opportunity to provide feedback on their return to work. 

If the injured worker is back at work, the inspector will ask to speak to the injured 

worker during the visit. 

An employer can request the presence of a representative (eg workers’ 

compensation consultant) or their Agent at a visit by an inspector. Injured workers 

can also have a representative or support person present during discussions, such 

as a union representative, their health and safety representative, a family member 

or work colleague. 

Following a visit, the RTW inspector will provide the employer with a report about 

the inspector’s observations during the visit and any enforcement action taken. 

The inspector may also provide a copy of the entry report to any workers whose 

claims were looked at during the visit and the relevant WorkSafe Agent. 

Audits and investigations 

An audit or investigation may be triggered by information WorkSafe obtains through 

a complaint or through WorkSafe’s proactive activities (eg a review of payments to 

a group of health service providers or visits to workplaces by RTW inspectors). 

Notifying Victoria Police of investigations 

WorkSafe must notify the Chief Commissioner of Victoria Police of an inquiry or 

investigation into offences under sections 248 (fraud), 248AA (bribery), 248A 

(false or misleading information by a professional service provider) or 249 (false 

information) of the AC Act, where WorkSafe reasonably believes that an offence 

was or may have been committed. Before notifying the Chief Commissioner of an 

inquiry or investigation, WorkSafe must have sufficient information or evidence on 

which to base a reasonable belief that an offence was or may have been committed. 




Investigative powers 

WorkSafe has various powers to obtain information and evidence under the AC Act. 

These are: 

• the power to obtain information and evidence 

• the power to inspect premises 

• the power to apply to a magistrate for a warrant for police to search premises. 

WorkSafe also has RTW inspectors dedicated to monitoring and enforcing return 

to work obligations. (More information about RTW inspectors and their powers is 

on page 5.) 

Obtaining information 

WorkSafe may issue a notice requiring any person to provide information or attend 

and give evidence or to produce all ‘books’ in their custody or control (section 239, 

AC Act). ‘Books’ means ‘any register or other record of information and any accounts 

or accounting records, however compiled, recorded or stored, and also includes any 

document’. 

Inspecting premises 

WorkSafe has the power to enter, inspect and examine any premises and to 

require a person at the premises to give information and produce books to determine 

whether there has been a contravention of the AC Act or the ACWI Act or to enforce 

either Act. WorkSafe may only exercise its power to inspect at a reasonable time, 

which is usually during the normal operating hours of the business in question 

(section 241, AC Act*). 

Interference with the exercise of powers 

It is an offence under section 241 of the AC Act for a person to: 

• obstruct or hinder a person exercising powers under section 239 or 240, or 

• without reasonable excuse, fail or refuse to comply with a notice issued pursuant 

to section 239 or 240, or 

• assault, intimidate or threaten (or attempt to assault, intimidate or threaten) 

a person exercising powers under section 239 or 240. 

* Note: A similar power to obtain information from employers is also contained within section 60 of the ACWI Act. 




Search Warrants 

WorkSafe may apply to a magistrate for a warrant to search premises under 

section 240A of the AC Act*. The magistrate may grant the search warrant if 

there are reasonable grounds to believe there are any books on the premises that 

are relevant to determining whether any of the provisions of the AC Act are being 

or have been contravened. It is an offence under section 240A(4) for a person to 

obstruct or hinder, oppose or refuse to permit such a search or seizure, or to assault 

or attempt to assault a person employed or acting in the execution or under the 

authority of a warrant. 

The following circumstances are examples of when WorkSafe may apply for 

a search warrant: 

• WorkSafe believes that evidence may be destroyed, removed, altered or hidden. 

• WorkSafe has issued a notice pursuant to section 239 or made a requirement 

under section 240 to provide information or produce a document, and: 

– the notice or requirement has not been complied with, and/or 

– the production of the information or document has been refused, and/or 

– the existence of the document sought has been denied, and/or 

– WorkSafe suspects that such a notice or requirement will be ineffective in 

obtaining the information required. 

• The information or document is in the possession or control of a person who 

may be incriminated in relation to the offence under investigation if required 

to produce information under section 239 or 240 of the AC Act. 

• A person has denied the existence of evidence where there are reasonable 

grounds to believe it does exist. 

Recorded interviews 

WorkSafe investigators may invite a person to attend a recorded interview regarding 

an allegation or suspicion that the person has breached accident compensation 

laws. WorkSafe will also arrange for an interpreter to be present if needed in such 

interviews. There are always two investigators present during an interview to ensure 

that there can be corroboration of what occurs. 

All interviews are recorded and the investigators always provide the interviewee with 

a copy of the CD of interview within seven days. In addition, or as an alternative to 

attending a formal recorded interview, a person can provide WorkSafe with written 

submissions, evidence or documents that they wish WorkSafe to consider. 

Legal assistance 

A person under investigation is entitled to seek legal advice and to have their lawyer 

or an independent person who is not connected with the investigation present 

during an interview with WorkSafe investigators. 

* Note: A similar power to apply for the issue of a search warrant is contained in section 70 of the ACWI Act. 




Use of information obtained 

Any information obtained pursuant to section 239, 240 or 240A is subject to the 

secrecy provisions contained in section 243 of the AC Act, which prevent WorkSafe 

employees from using the information obtained for anything other than official 

duties or the performance of their functions or powers. The secrecy provisions do 

not prevent WorkSafe employees from disclosing information for a range of other 

reasons set out in section 243(2), such as production of documents to a court in 

the course of criminal proceedings or providing documents or information to other 

government agencies, including the Transport Accident Commission. 

Client legal privilege 

A person may be able to claim client legal privilege in relation to certain information 

as a reasonable excuse not to comply with their usual duty to provide information or 

evidence to WorkSafe under sections 239, 240 and 240A of the AC Act. WorkSafe 

accepts that its powers are subject to a valid claim of legal professional privilege and 

is committed to exercising its powers in a fair and lawful way. 

WorkSafe investigators will give any person subject to a section 239 notice, 

inspection under section 240 or a search warrant reasonable time to seek legal 

advice (or in the case of a solicitor or barrister, to seek instructions) in relation to 

making a claim of privilege. A claim of client legal privilege must be made by the 

person being asked to provide the information or his or her legal adviser. 

If a claim of client legal privilege is made, WorkSafe will seek written confirmation of: 

• the claim for privilege 

• the documents over which privilege is claimed 

• the basis for the claim. 

If WorkSafe believes the claim is not a valid claim for client legal privilege, 

WorkSafe may take the following action: 

• provide a response to the person making the claim and explain any 

proposed action 

• look for the information elsewhere 

• challenge the claim of privilege in court, and/or 

• apply for a warrant to search for and seize the document and deliver it to 

a court to decide. 

Once WorkSafe is aware that a document is subject to a claim of client 

legal privilege, WorkSafe will: 

• not look at the contents of the document 

• deliver the document to the court that issued the warrant 

• abide by the decision of the court in relation to the claim of privilege. 




Special powers relating to service providers 

during investigations 

If WorkSafe reasonably suspects that a service provider (eg. a health care provider) 

has committed an offence against the AC Act or an offence against the Crimes Act 

1958 in connection with a claim for compensation, WorkSafe can suspend payments 

to the service provider. Suspensions remain in force until: 

• the prosecution is completed, or 

• where no prosecution is commenced, when WorkSafe decides not to prosecute for 

the suspected offence or after six months (whichever occurs first). 

Before suspending payments, WorkSafe must give the service provider written notice 

of the proposed suspension and invite the service provider to make any submissions 

within 28 days as to why the suspension should not be imposed. 

In determining whether to suspend payments pending an investigation and/or 

prosecution, WorkSafe takes into account the circumstances of each individual case, 

including the following considerations: 

• the seriousness of the suspected offence and the strength of the evidence 

upon which the suspicions are based 

• the perceived risk to injured workers or the scheme associated with continuing 

to pay the provider for services pending the finalisation of the investigation 

and/or prosecution 

• the need to maintain stakeholder and community confidence in the scheme 

• the proportionality and fairness of the suspension in the particular case 

• the impact that any suspension will have on the service provider and any potential 

‘flow on’ impacts to others 

• whether there are less burdensome alternatives to suspension to protect injured 

workers and the scheme 

• the level of cooperation provided by the provider during WorkSafe’s inquiries 

• any remedial steps taken by the provider with respect to WorkSafe’s concerns 

• any other enforcement action that is likely to be taken against the service provider 

• any submissions made by the provider as to why the suspension should not 

be imposed. 

Providers can seek a review of WorkSafe’s decision to suspend payments through 

the Victorian Civil and Administrative Tribunal. 

If the service provider is subsequently convicted or found guilty of an offence 

against the AC Act, the court may order that any costs for services rendered 

during the period of the suspension are not payable. The court may also: 

• disqualify the provider from the scheme for a specified period 

• revoke the provider’s approval (where applicable) to provide services 

• preclude the provider from re-applying for approval for a specified period. 




Enforcement options 

WorkSafe determines the most appropriate enforcement tool to be used in 

accordance with WorkSafe’s general prosecution guidelines. The guidelines are 

available on WorkSafe’s website, worksafe.vic.gov.au. 

Depending on the type of breach, the following enforcement options are 

available to WorkSafe: 

• commencing a prosecution 

• accepting an enforceable undertaking 

• issuing a letter of caution 

• seeking reimbursement or taking civil (rather than criminal) action 

• revoking, suspending or cancelling permissions (eg approvals, authorisations) 

• referring matters to professional, registration or disciplinary bodies or 

other agencies 

• disqualifying service providers from the scheme 

• terminating weekly payments 

• applying administrative penalties 

• seeking voluntary compliance. 

Prosecution 

Where sufficient admissible evidence exists of a breach of compensation laws 

and a prosecution would be in the public interest, WorkSafe will commence and 

conduct the prosecution in accordance with its general prosecution guidelines. 

The guidelines are available on WorkSafe’s website, worksafe.vic.gov.au. 

WorkSafe can prosecute offences under the AC Act, the ACWI Act and offences 

under the Crimes Act 1958 that are connected with a claim for compensation. 

A schedule setting out the detail of each offence that WorkSafe may prosecute 

and the maximum penalty that applies to each offence can be found in the 

Appendix (see page 16). 

In relation to most offences, the time for WorkSafe to bring charges against a 

person for an offence is limited. In relation to some offences, charges must be 

brought within the time period contained in the legislation where the offence is 

set out. Where an offence does not have a time limit stipulated in the legislation, 

then the time limit depends on the nature of the charge. 

Where a prosecution has been commenced, WorkSafe may negotiate with 

the alleged offender in relation to: 

• which charge(s) among multiple available charges will be pursued 

• whether one or more charges may be withdrawn if the accused person 

pleads guilty to a particular charge or charges, thereby removing the need 

for a contested hearing 

• the summary of the offence(s) that will be presented to the court in cases 

where the accused person pleads guilty 

• what parts of the evidence or elements of a charge are agreed between the 

prosecution and defence, in order to narrow the issues in dispute and reduce 

the length of contested hearings. 

WorkSafe can also seek a refund of money from offenders under section 

249A of the AC Act following a finding of guilt by a court of an offence under 

the AC Act or an offence under the Crimes Act 1958 that is connected with 

a claim for compensation. 




Enforceable undertakings 

As an alternative to prosecution, WorkSafe may accept a written undertaking by a 

person in connection with a contravention (or alleged contravention) of the AC Act. 

Once WorkSafe accepts an enforceable undertaking, WorkSafe cannot prosecute 

the person for the offence. 

If WorkSafe considers that the undertaking has been breached, WorkSafe may 

apply to the Magistrates’ Court of Victoria for enforcement of the undertaking. If the 

Magistrates’ Court is satisfied that the undertaking has been breached, the court may: 

• make an order that the person must comply with the undertaking 

• make an order that the person take specified action, or 

• make any other order it considers appropriate. 

The undertaking may be withdrawn or varied only with the consent of WorkSafe. 

Letters of caution 

WorkSafe may issue a letter of caution as an alternative to prosecution. A letter 

of caution gives notice to an alleged offender that WorkSafe has detected a breach 

of Victoria’s accident compensation laws which it could prosecute, but that after 

consideration of WorkSafe’s general prosecution guidelines, it will not prosecute for 

the breach. 

WorkSafe will generally issue a letter of caution where: 

• there is sufficient evidence of the breach 

• it is a relatively minor breach 

• some form of enforcement action is warranted but in all the circumstances, 

it is not in the public interest to prosecute the breach. 

A previous letter of caution may be taken into account by WorkSafe in deciding 

whether to prosecute any subsequent offence for a similar contravention. WorkSafe 

will not use a previous letter of caution during prosecution or sentencing for 

subsequent offending (unless the offender asserts that they have not previously 

breached the law). 

Seeking reimbursement and civil action 

Pursuing recovery of inappropriate payments or overpayments is an important 

part of WorkSafe’s role in protecting the financial viability of the scheme and 

discouraging abuse. 

WorkSafe may pursue civil action where there is insufficient evidence to bring a 

criminal charge or the relevant circumstances do not give rise to any offence under 

accident compensation laws. Civil action involves WorkSafe suing a person for 

a remedy (usually the payment of money) whereas criminal prosecution involves 

WorkSafe asking the court to impose a criminal punishment upon making a finding 

of guilt. Criminal charges must be proved ‘beyond reasonable doubt’, whereas civil 

causes of action must be proved only ‘on the balance of probabilities’. 

WorkSafe carefully considers the appropriate timing of civil action where criminal 

action is contemplated and may delay bringing any civil case until criminal 

proceedings are concluded or at the point in time when it has decided not 

to prosecute a case. 




Revocation, suspension or cancellation of permissions 

WorkSafe authorises and permits certain people to do certain things for the purposes 

of the scheme. For example, WorkSafe approves certain appropriately qualified 

healthcare providers to provide services to injured workers. 

Subject to legal requirements, WorkSafe may decide to revoke, suspend or cancel 

any authorisation or permission given to a person in order to deal with behaviours 

or practices identified in its investigation or audit. Such action is a protective 

measure and may be undertaken even where steps have been taken to remedy 

a contravention or where an offender has been otherwise punished (eg fined 

or imprisoned). 

WorkSafe recognises that the revocation, suspension or cancellation of regulatory 

permissions may have serious consequences for the permission holder and may also 

have serious adverse ‘flow on’ effects. When making decisions about permissions, 

WorkSafe balances these considerations with the paramount need to protect injured 

workers and the scheme. In making a decision whether or not to issue or renew a 

regulatory permission, WorkSafe will consider the person’s history of compliance. 

Referral to professional bodies 

If WorkSafe is concerned about the adequacy, appropriateness or frequency of 

any services provided to injured workers, WorkSafe may refer its concerns to the 

professional body regulating the service provider (section 249B of the AC Act). 

Where the service provider is not regulated by a professional body, WorkSafe 

may carry out its own enquiries to determine whether there has been any 

improper conduct. 

WorkSafe may suspend any payments to the person pending the outcome of the 

professional body’s review or WorkSafe’s review (as the case may be). Before 

suspending payments, WorkSafe must give the provider written notice of the 

proposed suspension and invite the provider to make any submissions within 

28 days as to why the suspension should not be imposed. 

In determining whether to suspend payments pending review, WorkSafe takes into 

account the circumstances of each individual case, including the following: 

• the seriousness of the alleged concerns and the strength of the evidence upon 

which the concerns are based 

• the perceived risk to injured workers or the scheme associated with continuing 

to pay the provider for services pending the review of the provider’s conduct 

• the need to maintain stakeholder and community confidence in the scheme 

• the proportionality and fairness of a suspension in the particular case 

• the impact that any suspension will have on the service provider, and any potential 

‘flow on’ impacts to others 

• whether there are less burdensome alternatives to suspension to protect injured 

workers and the scheme 

• the level of cooperation by the provider during WorkSafe’s inquiries 

• any remedial steps taken by the provider with respect to WorkSafe’s concerns 

• any other enforcement action that is likely to be taken against the service provider 

• any submissions made by the provider as to why the suspension should 

not be imposed. 




A suspension of payments does not mean that the service provider cannot provide 

services to injured workers during the period of the suspension. However, the service 

provider will not be paid for any services rendered to injured workers during the 

suspension period. Suspensions stay in place until the completion of the professional 

body’s or WorkSafe’s review (as the case may be). Providers can seek a review of 

WorkSafe’s decision to suspend payments through the Victorian Civil and 

Administrative Tribunal. 

Disqualifications 

WorkSafe can effectively disqualify a service provider from the scheme for a 

specified period if the service provider: 

• is convicted or found guilty of an offence punishable by imprisonment for a term 

of two years or more or by a maximum fine of not less than 240 penalty units 

• is convicted or found guilty of an offence punishable by imprisonment 

for a term of two years or more under a law of another state, a territory 

or the Commonwealth. 

WorkSafe can also disqualify a service provider from the scheme for a specified 

period if a professional body finds, or considers on reasonable grounds, that: 

• the service provider has engaged in unprofessional conduct or professional 

misconduct, or 

• the ability of a service provider to practise is affected because of the 

person’s physical or mental health or the person’s incapacity, or 

• the service provider is not of good character or is otherwise not a fit 

and proper person. 

Before suspending payments, WorkSafe must give the provider written notice 

of the proposed disqualification and invite the provider to make any submissions 

within 28 days as to why the disqualification should not be imposed. 

In determining whether to disqualify a service provider from the scheme, WorkSafe 

takes into account the circumstances of each individual case, including the types of 

considerations referred to in relation to referrals and suspensions. WorkSafe gives 

notice of disqualifications to the professional body that regulates the conduct of 

the service provider (where one exists) and Medicare Australia. Providers can seek 

a review of WorkSafe’s disqualification decisions through the Victorian Civil and 

Administrative Tribunal. 




Termination of weekly payments and medical services 

If WorkSafe is satisfied that a worker has fraudulently obtained weekly payments 

and/or medical and like services, WorkSafe may terminate those payments (section 

114(3) and 99AE AC Act). In determining whether termination of weekly payments 

and/or medical and like services for fraud is appropriate, WorkSafe considers all the 

circumstances of the individual case, including: 

• the strength of the evidence of the worker’s fraud 

• the nature, extent and seriousness of the worker’s fraud 

• the level of cooperation provided by the worker during WorkSafe’s inquiries 

• any restitution made (or genuine offer of restitution) 

• the prior history of the worker 

• the impact of termination of weekly payments on the worker, and any ‘flow on’ 

impact on others 

• the proportionality of termination of weekly payments in response to the fraud 

• the fairness of termination in the particular case 

• any other enforcement action that is likely to be taken against the worker 

for the fraud. 

Administrative penalties 

Employers must forward all claims for compensation together with any related 

Certificate of Capacity to WorkSafe (except for medical expense claims which have 

been accepted by the employer and are within the employer’s excess) within 10 days 

of receiving the claim. It is an offence not to comply with this requirement. In addition 

to any penalty under the Act, an employer may also be held liable for any weekly 

payments of compensation owed to a worker until the claim and certificate are 

received by WorkSafe’s Agents, unless the employer can demonstrate that there 

was ‘reasonable cause’ for the delay. This is in addition to the employer’s excess 

under section 125A of the AC Act. 

Employers who fail to obtain or keep in force a WorkSafe injury insurance policy 

may also be liable for a penalty of an amount up to twice the amount of the premium 

that would have been payable under the policy. 

Voluntary compliance 

If WorkSafe is satisfied that a person has taken timely and satisfactory steps to 

remedy a detected breach, WorkSafe may, after considering the factors set out in 

its general prosecution guidelines and this policy, decide to take no further action. 




Publication of enforcement actions and outcomes 

WorkSafe publicises information about its enforcement actions in order to raise 

awareness of accident compensation laws and the consequence of non-compliance, 

thereby deterring people from engaging in similar conduct. 

WorkSafe may publicise information about prosecutions for example by: 

• summarising the case on its website 

• speaking to the media and sending press releases about a case 

• using a case as a teaching tool at seminars, conferences and in materials 

distributed to various groups, such as employers, employer groups and 

trade unions 

• using information about a case in WorkSafe publications 

• using information from a case to gather and publish data and statistics. 

The amount of information disclosed by WorkSafe depends on the stage of the 

investigation and prosecution. At the start of an investigation, WorkSafe may confirm 

that an investigation has commenced, but will usually not make further comment 

on the specific facts. Once WorkSafe has laid charges and throughout any court 

proceedings or trial, WorkSafe generally confines its comments about the case 

to sending out information that is in the public interest through media releases. 

Upon a finding of guilt by a court in relation to breaches of accident compensation 

laws, WorkSafe usually publishes a summary of the case on its website, including 

identifying details, and may also disclose information about the outcome in 

communications to the media, in WorkSafe publications and in seminars, conferences 

and other materials. If a person is found not guilty or WorkSafe withdraws charges, 

WorkSafe generally limits disclosure about the case to information that is already in 

the public domain as a result of the prosecution process and where there is a clear 

public interest in disclosure of the information. WorkSafe may speak publicly about 

the proceedings at the request of the person found not guilty to clarify the status 

of proceedings. 

At all times, WorkSafe aims to be accurate, impartial, balanced and fair in the way it 

communicates about investigations and prosecutions. At any stage of the investigation 

and prosecution process, WorkSafe may disseminate information in relation to a 

case for the purpose of preventing similar offences from occurring. WorkSafe may 

also disclose information about a case to the public at any time where it considers 

it is necessary to quell speculation or to correct or forestall inaccurate media reports. 

WorkSafe may publish identifying information about a case in relation to enforceable 

undertakings accepted or letters of caution issued in lieu of a prosecution. WorkSafe 

also publishes on its website the details of disqualifications and suspensions, 

including the names and business addresses of service providers who have been 

disqualified or suspended. 


Appendix – 

Schedule 

of offences 

Accident Compensation Act 1985 (AC Act) 

The AC Act contains a number of offences for failing to comply with certain 

provisions of the Act. These offences are set out in the following table. 

Offence 

Section 

Offence Description 

Penalty 

56(11) Knowingly make a false or 

misleading statement (conciliation) 

58B 

96A(7) 

Fail to comply with direction of 

conciliation officer 

Worker or employer failing to provide 

information under 96A (notification 

of entitlement to certain payments) 

101(2) Employer failing to keep register 

of injuries 

101(3) Employer failing to enter particulars 

of injury in register of injuries 

108(1) Employer failing to forward claim 

or certificate of capacity 

108(3) Employer failing to forward return 

of claims within employer’s excess 

114D(2) 

Employer failing to make 

weekly payments 

123(1) Employer failing to notify worker’s 

return to work or change in 

weekly earnings 

129M(2) 

Entering into arrangement with 

contributor for purposes of securing 

that a contributor will be unable to 

pay the amount of an assessment 

145(5) Self-insurer failing to give notice 

of circumstances specified in 

sub-ss (2), (3)(b) 7 (4) 

Individuals: 180 penalty units 

or six months imprisonment 

or both 

Corporations: 900 penalty units 



40 penalty units 


















Appendix – Schedule of offences 

Accident Compensation Act 1985 (AC Act) continued 

Offence 

Section 


Penalty 

146A(2) Self-insurer failing to submit return One penalty unit for each day 

the offender is in default 

146A(3) 

Self-insurer submitting return 

containing false material particulars 

151(3) Employer, ceasing to be a 

self-insurer, failing to give the 

Authority tail claims information 

151D(3) 

& (3A) 

Employer, ceasing to be a 

self-insurer, contravenes sub-s (2) 

(ensuring a guarantee in place) 

152(5) Employer, being a subsidiary of a 

self-insurer and becoming a non- 

WorkCover employer, failing to give 

the Authority tail claims information 

155(2) Breach of secrecy provisions 

(self-insurer) 

177 Non-WorkCover employer failing 

to comply with Part VIA 

181 Agents engaging in prohibited 

conduct (breach of anti-touting 

provisions) 

183(1) Legal practitioners who acts for 

person on a claim engaging in 

prohibited conduct 

184(5) Legal practitioner failing to 

disclose on certificate that knew 

or suspected agent engaged in 

prohibited conduct 

186(3) Contravention of direction not 

to act for a person in relation to 

a claim or type of claim 

194(2) Employer failing to provide suitable 

or pre-injury employment 

195(1) Employer failing to plan return 

to work 




600 penalty units; and 

300 penalty units each day 

for a continuing offence 

Individual: 120 penalty units 




Individuals: 120 penalty units; 

and 60 penalty units each day 


Corporations: 600 penalty units; 

and 300 penalty units each day 

















Offence 

Section 


196(1) Employer failing to consult about 

return to work 

197(1) Employer failing to nominate 

return to work coordinator 

198(1) Employer failing to make return 

to work information available 

198(2) Employer failing to consult with 

workers about how to make return 

to work information available 

199(2) Host employer failing to cooperate 

with labour hire employer about 

return to work 

209(2) Employer failing to comply 

with direction to use approved 

occupational rehabilitation provider 

222(2) Refusing or failing to comply with a 

requirement made by RTW inspector 

224(4) Employer failing to comply with 

RTW improvement notice 

227(2) Employer failing to display 

RTW improvement notice 

230 Refusing or failing to provide 

assistance to RTW inspector 

231(2) Refusing access to premises to a 

person assisting a RTW inspector 

234(1) (a) intentionally hindering or 

obstructing RTW inspector 

(b) intentionally concealing a person 

or thing from a RTW inspector 

(c) intentionally preventing or 

attempting to prevent a person 

from assisting a RTW inspector 

234(2) Assaulting, intimidating or 

threatening, or attempting to 

assault, threaten or intimidate, 

a RTW inspector or a person 

assisting a RTW inspector 

Penalty 

















Individuals: five penalty units 








235 Impersonating a RTW inspector 60 penalty units 


or imprisonment for two years 

or both 

Corporations: 1,200 penalty units 




Offence 

Section 

240A(4) 

240A(5) 

240A(6) 


Obstructing or hindering a person 

in the execution of a warrant 

Refusing to permit a search or 

seizure authorised under a warrant 

Assaulting or attempting to 

assault a person in the execution 

of a warrant 

241(1) Obstructing or hindering a 

person exercising powers under 

ss 239 or 240 

241(2) Refusing or failing to comply 

with a requirement made under 

ss 239 or 240 

241(3) Assaulting, intimidating or 

threatening, or attempting to 

assault, threaten or intimidate, 

a person exercising powers under 

ss 239 or 240 

242AA 

(1) 

Employer engaging in discriminatory 

conduct for a prohibited reason 

Penalty 




or imprisonment for six months 

or both 




or both 








or both 




242A Unauthorised use of information 100 penalty units 

243(1) Breach of secrecy provisions 100 penalty units 

244(1) Breach of secrecy provisions 

(Part VII) 

(NB Part VII has been repealed) 


248 Fraud Individuals: 1,000 penalty units 

or two years imprisonment 


248AA 

(1) & (2) 

248A 

Bribery 

(1) Service provider knowingly 

providing false information 

(2) Using information given by a 

provider knowing it to be false 

Individuals: 1,000 penalty units 

or two years imprisonment 




or both. 





Offence 

Section 

248AB 


(1) Knowingly make a false 

statement or suggest that 

an employer make a false 

statement relating to premium 

(2) Knowingly omit or advise 

an employer to omit material 

information relating to premium 

Penalty 



or both 


249(1) Providing false information Individuals: 120 penalty units 


249(2) Knowingly make a false statement Individuals: 180 penalty units 


or both 


250 Obstructing officers Individuals: 60 penalty units 


For information about the value of penalty units, please refer to worksafe.vic.gov.au. 



Accident Compensation (WorkCover Insurance) Act 1993 

(ACWI Act) 

The ACWI Act contains a number of offences for failing to comply with certain 

provisions of the Act. These offences are set out in the following table. 

Offence 

section 


Penalty 

7 Fail to have a policy Individuals: 240 penalty units 


10(1) Person other than WorkSafe issues 

or renews a policy 

12(3) Fail to produce for inspection or 

supply particulars of policy when 

served with notice 

12(4) Fail to retain policy for prescribed 

period 

18(2) Fail to provide estimate of rateable 

remuneration 

20(1) Fail to advise of revised estimate 

of remuneration 

20(2) Fail to advise of actual remuneration 

exceeding estimate and submit 

revised estimate 

23(3) Non-compliance with rateable 

remuneration certificate 

requirements 

39(4) Former authorised insurer 

failing to provide information 

or records as required 

















42 Failure to pay premium Individuals: 240 penalty units 


57(5) Fail to forward claim 

(uninsured employer) 

60(2) Employer or suspected employer 

failing to comply with notice to 

provide information 

69(1) Fail to keep and preserve 

proper books 









Accident Compensation (WorkCover Insurance) Act 1993 

(ACWI Act) continued 

Offence 

section 


70(4) Obstructing or hindering a person 

in the execution of a warrant 

70(5) Refusing to permit a search or 

seizure authorised under a warrant 

70(6) Assaulting, or attempting to 

assault, a person in the execution 

of a warrant 

Penalty 




or imprisonment for six months 

or both 




or both 





Crimes Act 1958 

WorkSafe may also file a charge under the Crimes Act 1958 for an offence 

‘which occurs in connection with a claim for compensation under this Act’ 

(s. 252(1) Accident Compensation Act 1958). The most commonly used 

provisions are set out below. 

Offence 

section 


Penalty 

74 Theft Level five imprisonment 

(10 years maximum) 

81 Obtain property by deception Level five imprisonment 


82 Obtain financial advantage 

by deception 

Level five imprisonment 


83 False accounting Level five imprisonment 


83A Falsification of documents Level five imprisonment 




WorkSafe Victoria 

WorkSafe Agents 

Agent contact details are all available at 

worksafe.vic.gov.au/agents 

Advisory Service 

Phone (03) 9641 1444 

Toll-free 1800 136 089 

Email info@worksafe.vic.gov.au 

Head Office 

222 Exhibition Street, Melbourne 3000 

Phone (03) 9641 1555 

Toll-free 1800 136 089 

Website worksafe.vic.gov.au 

For information about WorkSafe in 

your own language, call our Talking your 

Language service 

1300 559 141 

1300 650 535 

1300 661 494 

1300 660 210 

1300 662 373 

1300 722 595 

1300 724 101 

1300 725 445 

1300 781 868 

1300 554 987 

1300 782 442 

1300 782 343 

WSV1001/03/10.10

Compensation Compliance and Enforcement ... - WorkSafe Victoria

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