Beware!! Serious Penalties Can Apply if You Work Whilst Receiving Workers’ Compensation Benefits
Injured workers need to know of the potential serious consequences if they are found to be working (paid or unpaid), without WorkCover’s knowledge, whilst also receiving workers’ compensation benefits.
Under the Workers’ Compensation and Rehabilitation Act 2003 (Qld), individuals receiving workers’ compensation benefits must notify the insurer (ie WorkCover or the workers’ compensation self-insurer) within 10 business days if they:
- Return to work in any capacity; or
- Engage in a “calling”.
A “calling” is broadly defined to include any activity that could ordinarily attract payment or reward, regardless of whether payment is actually received. This includes self-employment, running a business and performing any trade, profession or occupation.
Examples of engaging in a calling can include things like:
- Cooking at a large event (e.g. a community BBQ)
- Performing delivery or courier work
- House painting
- Signing an employment contract while certified as totally incapacitated for work
Importantly, you do not need to be paid for the activity to be considered a calling.
Disclosure Obligations
If you had a second job at the time of your injury, or even a hobby or “side hustle”, this must be disclosed to the insurer when lodging your claim.
Ongoing disclosure obligations apply during the course of the claim as well. If you are considering commencing any form of work, a second job, or any activity which could ordinarily attract payment or reward, you should notify WorkCover first.
Failure to notify the insurer of any return to work or engagement in a calling may have serious legal consequences.
Consequences of Non-Disclosure
Failing to inform the insurer of the work (paid or unpaid) that you are doing may be considered fraud or attempted fraud under the Act.
The insurer may refer suspected breaches to the Workers’ Compensation Regulator, who will decide whether to prosecute the offences.
This means that criminal charges may well be brought against you and you could face significant fines and/or a lengthy term of imprisonment, as well as being left with a permanent criminal record.
If prosecuted and found guilty there are also severe consequences to your workers’ compensation entitlements:
- You will lose any right you have to receive further workers’ compensation benefits;
- You will lose any right you had to sue your employer for negligence and receive common law damages;
- You may be required to repay all workers’ compensation benefits received; and
- You may be liable for the insurer’s legal costs.
Summary of Recent Cases Involving Engagement in a Calling While Receiving Workers’ Compensation Benefits
Case 1 – November 2024
A worker was convicted and sentenced to two years of imprisonment for fraud, false or misleading statements and engaging in a calling. Despite being medically certified as unfit for work, he continued driving for Uber while receiving compensation. He failed to disclose this employment to the insurer and misrepresented his capacity to work.
Upon discovery during a common law claim for damages, the insurer referred the matter to the Regulator and he was prosecuted. His common law rights were extinguished, he was sentenced to a period of imprisonment and he was ordered to pay over $80,000 in restitution (repaying benefits paid) and legal costs.
Case 2 – July 2024
The worker sustained a psychological injury due to workplace bullying. She failed to disclose that she held an ABN and performed ad hoc chairperson duties for another organisation during her compensation claim. She was convicted of fraud and making false statements.
She was convicted and sentenced to a period of imprisonment which was suspended. The worker was ordered to repay over $117,000 in restitution and legal costs and her common law rights were extinguished.
Case 3 – May 2024
The defendant claimed compensation for an ankle injury but failed to disclose her involvement in a food takeaway business registered under her ABN. Despite regular business activity and financial transactions, she denied employment and made false representations to the insurer and medical professionals. She later attempted to claim nearly $1.5M in damages and misrepresented her role in the business.
The worker was found guilty of fraud and attempted fraud and was sentenced to 16 months’ imprisonment. Her common law rights were extinguished and she was ordered to pay restitution and legal costs of over $50,000.
Case 4 – March 2024
The worker received compensation for a workplace injury but commenced employment in medical imaging without notifying the insurer. She misled the insurer about her availability and income, earning nearly $17,000 while she was certified as unfit for work.
She was found guilty and was placed on probation for 18 months. Her common law rights were extinguished and she was ordered to pay restitution and costs of over $12,000.
Practical Takeaways
- If you have a second job, let WorkCover know.
- If you have an ABN or own a business of any sort, separate from the job where you were injured, let WorkCover know.
- If you have a hobby or a side hustle that makes money or has the potential to make money, let WorkCover know.
- If you are selling items online, or attempting to sell anything online, in a way that may be considered to be an income earning activity, let WorkCover know.
- If you intend to do any work or activity that might look like work, paid or unpaid (eg volunteer work), whilst receiving workers’ compensation benefits, let WorkCover know.
Many of these things won’t impact your weekly benefits if you tell WorkCover upfront but failure to inform WorkCover of these things can have catastrophic consequences, including criminal prosecution, loss of your entitlement to workers’ compensation benefits and loss of entitlement to sue your employer for negligence and common law damages.
