Woolworths has been issued a $50,000 civil penalty – the maximum possible – by the NSW State Insurance Regulatory Authority for breaches of its obligations as a self-insurer under the workers' compensation scheme. 

SIRA says the fine is the highest penalty allowable for a single contravention under the Workers Compensation Act 1987. 

An investigation identified failures to make weekly payments in accordance with sections 36 and 82A of the act and a resultant breach of Woolworths Group Ltd’s self-insurer licence. 

The investigation identified systemic deficiencies in claims management processes that resulted in workers receiving incorrect weekly benefit payments. 

Woolworths has made admissions of the breaches and acknowledged SIRA’s concerns. 

SIRA said that following its intervention, corrections to payments have been made to all affected workers. The regulator will continue to engage closely with Woolworths to monitor compliance with legislative obligations and self-insurer licence conditions. 

SIRA warned that licensed insurers including self-insurers are expected to maintain claims management practices that enable compliance with their statutory obligations at all times. 

Compliance with these obligations is essential so that people who are injured at work receive their lawful entitlements in a timely manner, the regulator said.