Cleaning business fined for no workers’ compensation insurance
Last month, a sole trader operating a Queensland cleaning business was fined $3,000 for failing to maintain insurance for their workers against injury or illness.
The cleaning business employed almost 60 workers between November 2021 and 27 February 2023, but did not maintain a workers’ compensation insurance policy.
Payments to the sole trader’s policy were dishonoured, which meant they were underinsured, and the policy was cancelled.
The sole trader understood the requirement to have an insurance policy and was reminded on multiple occasions to enter a payment plan and pay the policy.
Debt recovery was initiated in the Magistrates Court to recover the premium that was owed to them.
The sole trader pleaded guilty and was fined $3,000 with no conviction recorded and ordered to pay an additional $1,750 in costs. Premiums owed are now being repaid and an insurance policy is now in place.
Fortunately, no workers suffered an injury during the un-insured period, but this case is an important reminder to all employers that they must insure workers against work-related injury or illness.