The Legal Risks of Unlicensed Forklift Operation: Real-World Australian Case Studies

Operating a forklift without the appropriate licence isn’t just unsafe—it’s illegal. Across Australia, forklift operators must hold a valid High Risk Work Licence (HRWL), and businesses must ensure that operators are properly trained and compliant under the Work Health and Safety Act 2011. Failing to meet these requirements can result in serious legal, financial, and reputational consequences.

In this article, we’ll examine real-world case studies where unlicensed forklift operation led to prosecution, fines, injuries, and even fatalities—and we’ll explore what every employer and operator can learn from these incidents.

What the Law Says

In Australia, operating a forklift without an LF or LO HRWL is a breach of WHS legislation. The Work Health and Safety Regulations 2011 make it clear:

“A person must not carry out high-risk work unless the person holds a high-risk work licence for that class of work.”

Employers also have a primary duty of care to ensure all equipment is operated by trained and licenced workers. Ignorance, poor recordkeeping, or informal training are not acceptable excuses in the eyes of the law.

Case Study 1: Unlicensed Operator Injures Colleague – NSW

In 2022, a Sydney-based logistics company was fined $90,000 after a worker suffered serious leg injuries from a forklift collision.

What happened:

• A worker with no HRWL was instructed to operate a forklift to move pallets during a peak period.
• While reversing, the operator struck another employee who was walking in the same aisle.
• Investigations found that no proper induction or licensing checks had been completed.

Legal outcome:

• The employer was prosecuted under section 19(1) of the WHS Act for failing to provide a safe work environment.
• The court found that the incident was entirely preventable through proper training and licencing protocols.

Key takeaway:

A moment of convenience or cost-saving can lead to long-term financial and legal damage—not to mention serious harm to staff.

Case Study 2: Fatality Leads to $375,000 Fine – Victoria

In 2018, a Victorian manufacturing company was found liable after a forklift incident resulted in the death of a 44-year-old contractor.

What happened:

• A contractor was assisting with unloading operations when he was struck and crushed by a reversing forklift.
• The operator was found to be unlicensed and inadequately supervised.
• The company had failed to verify licencing credentials or implement a traffic management plan.

Legal outcome:

• WorkSafe Victoria prosecuted the company for multiple breaches of the OHS Act.
• The business was fined $375,000, and a coroner’s report strongly criticised the company’s safety culture.
• No criminal charges were laid against the operator due to lack of intent, but the reputational damage was significant.

Key takeaway:

Even in the absence of malicious intent, a lack of compliance with licensing and supervision requirements can result in devastating outcomes.

Case Study 3: Small Business Faces $20,000 Fine – Queensland

In a less severe but equally telling case, a small Brisbane-based wholesale company was fined after WorkSafe QLD conducted a random inspection.

What happened:

• Inspectors found that two workers were regularly operating forklifts but had expired HRWLs.
• The company claimed they were unaware of the expiry dates and believed informal supervision was sufficient.

Legal outcome:

• The business received a $20,000 fine and was issued an improvement notice to rectify recordkeeping and training procedures.
• The regulator highlighted that “licence validity must be proactively managed, not assumed.”

Key takeaway:

Even without injuries or incidents, non-compliance can attract enforcement and financial penalties—especially when poor systems are at fault.

The Hidden Costs of Non-Compliance

While legal fines grab headlines, the indirect costs of unlicensed forklift operation are often just as damaging:

• Increased insurance premiums or denied claims
• Downtime due to investigations or work stoppages
• Staff turnover and low morale following preventable incidents
• Negative publicity and loss of contracts or clients
• Personal liability for directors or business owners in serious breaches

In many cases, these consequences exceed the original fine and can disrupt business operations for months or even years.

How to Protect Your Business and Workforce

Here are key steps to stay compliant and reduce risk:

1. Verify all forklift licences before allowing anyone to operate machinery.
2. Keep a central HRWL register with expiry dates and licence classes.
3. Provide refresher training after incidents, equipment changes, or role changes.
4. Implement and maintain a traffic management plan, especially in shared spaces.
5. Regularly review safety procedures and SWMS in consultation with workers.
6. Conduct internal audits and engage an RTO to assess your training program.

Conclusion: Legal Risk Is Preventable

Every employer and forklift operator in Australia has a duty to prioritise safety and compliance. These real-life case studies show that the legal risks of unlicensed forklift operation are very real—and very costly.

But the good news is that compliance is simple when it becomes a habit. Keep training records updated, verify licences routinely, and work with accredited RTOs who understand your industry.

When it comes to forklift safety, cutting corners isn’t just dangerous—it’s unlawful.