State Insurance Regulatory Authority (SIRA) Update - Business owner admits offence

A Hunter hospitality provider ran afoul of the law when she realised her public liability insurance did not cover her workers compensation liabilities.

She rang SIRA and explained her predicament, having been misled by the broker she used and trusted when she set up her business five years prior.

The business had been uninsured for a substantial period of time in a high-risk industry which recorded more than 18,000 injuries, more than 250 permanent disabilities and eight deaths in the past three years.

Sarina Tranter, Director of SIRA Compliance, Enforcement and Investigation, said SIRA dealt seriously with uninsured employers who avoided premiums to obtain a commercial advantage over other businesses.

“NSW has a safety net for workers in the event they are injured and their employer is uninsured,” Tranter said.

“The uninsured worker can make a claim through icare’s uninsured liability section. And while normal benefits apply to these claims, there are heavy penalties for employers. In addition the employer is liable for the cost of the claim.”

The hospitality provider faced the prospect of paying double premiums for up to five years, a fine of up to $55,000 and/or imprisonment for up to six months.

In determining appropriate enforcement action, SIRA’s investigators considered mitigating factors including the employer’s self-disclosure, cooperation and remorse, and ordered her to pay a more lenient three-year ‘avoided premium penalty’ of $18,000.

SIRA’s investigators also contacted the broker involved and reiterated the broker’s obligation to provide legally sound advice.

Workers compensation is required by law under section 155 of the Workers Compensation Act 1987.

SIRA’s Compliance, Enforcement and Investigations team identifies uninsured NSW employers, which often becomes apparent when an employee is injured.

The unit also leads projects targeting high risk industries to make sure employers are aware of their obligations under the Act so they can avoid penalties.

Workers compensation, return-to-work and injury management is complicated at the best of times, if you are unsure about your duties as a manager or business owner contact us today on 1300 789 132 for expert advice.

Landmark workplace prosecution in Queensland continues

Two family owned businesses and their respective directors have been committed to stand trial following a Workplace Health and Safety Queensland (WHSQ) investigation into the death of a 62 year old roofer.
These are Queensland's first category 1 prosecutions under work safety laws, with the companies, if found guilty of the alleged offences, facing maximum fines of $3 million, and the two directors fined up to $600,000 each and facing maximum gaol terms of five years.
The defendants, the PCBUs (in this instance the Directors) and registered companies have been charged for contravening Section 19 (2) and/or s20 of the Work Health and Safety Act 2011.
The deceased worker, who only started the job four days earlier, fell almost six metres to his death while working on the edge of a roof without protection. The worker was one of five roofers working on an industrial shed at Lake Macdonald in the Sunshine Coast Hinterland on 29 July 2014 when he fell.
The shed was part of a larger complex being refurbished by a building business that contracted a roofing business to fit roof sheeting.
An indictment relating to four separate complaints under the Work Health and Safety Act 2011 was presented at the Maroochydore District Court on 8 February 2017 against the defendants, who will stand trial in the Brisbane District Court. The matter is due for mention on 19 April 2017.
Workplace Health and Safety Queensland head Dr Simon Blackwood said falls from heights is a serious issue in most industries, particularly construction.
“The roofing/reroofing trade is certainly one where things can go wrong at height. In this case, the court will hear evidence that appropriate safety equipment was available and on site.” Said Dr Blackwood.
This workplace death was preventable. What are you doing as a business owner or manager to prevent your workers taking unnecessary risks? Don’t risk prosecution and non-compliance, contact ISOsafe today on 1300 789 132 or email us at enquiries@isosafe.com.au.