To help ensure that employers are paying the appropriate premium, workers compensation law gives WorkCover and its Scheme Agents a legal right to access an employer’s wages records. This review of an employer’s wages records is called a ‘wage audit’.
WorkCover uses a range of data mining techniques to review employers’ policy details, develop risk profiles for identifying areas of high-risk for non-compliance, and target wage audits. In addition, WorkCover’s Scheme Agents also identify employers for wage audit based on observed policy activity.
Employers are required by law to cooperate with these inspections. In particular, they must cooperate in making arrangements for the inspection to take place within a reasonable time after the initial request. If an employer does not comply with these requests they may be issued with an order under workers compensation law. If an employer still does not comply, they may be prosecuted and fined up to 500 penalty units (currently $55,000).
For more information on wage audits, see WorkCover’s
Wages Definition Manual.