The Hidden Cost of Ignoring Licence Checks: What Every Business Owner Must Know
When you hand over the keys to workplace equipment, you are placing trust in your team’s competence and compliance. Without a proper verification system, that trust can quickly turn into risk. A recent court case shows how ignoring licence checks can lead to serious financial and legal consequences.
What Happened
Custom Bus Group, a major bus manufacturer, had written forklift safety procedures stating that only licensed workers could operate equipment. In practice, unlicensed workers were regularly driving forklifts and management knew it.
There was no up-to-date licence register, no verification process and no control over who could access the forklift keys. This lack of oversight led to a serious incident in 2022 when an unlicensed worker tipped a forklift over. Thankfully, no one was injured, but the penalties were severe:
Fine: $170,000 (after a guilty plea discount)
Remediation costs: More than $800,000 to rebuild and improve safety systems
For a business with 150 staff, this was a major hit. For a small or medium business, it could be devastating.
What Went Wrong
This case revealed three major compliance failures that every business must avoid:
Licence verification: No system existed to confirm or monitor current high risk work licences.
Access controls: Forklift keys were not secured, allowing anyone to operate the equipment.
Management oversight: Supervisors were aware of unlicensed use but failed to act.
This was not a paperwork issue. It was a complete failure in system management that put lives at risk.
What This Means for Your Business
Even if your business operates on a smaller scale, the same laws apply.
Fines do not scale down: A $170,000 penalty could cripple a small business.
Prevention costs less than remediation: Setting up a proper system now is far cheaper than rebuilding after an incident.
Directors are personally accountable: Courts now hold owners and managers responsible when they ignore known safety risks.
If you manage a team, fleet or equipment, you have a duty to ensure every operator is licensed and competent.
Simple Steps to Strengthen Your Licence Management
You do not need a large compliance department to manage licence checks effectively. Start with these practical steps:
Maintain a licence register: Keep a digital or spreadsheet record of all licences and expiry dates.
Control equipment access: Lock away keys and limit use through supervisor sign-out or access cards.
Train supervisors: Make sure leaders understand their WHS responsibilities and licence verification duties.
Conduct regular audits: Quarterly reviews of licences and access systems can prevent costly oversights.
How Anzen Safety & Training Can Help
At Anzen Safety & Training, we partner with businesses across Australia to build safe, compliant and cost-effective systems. Our goal is to empower your team to take ownership of safety and reduce compliance risks before they escalate.
Our specialists can help you:
Create and maintain a central licence register
Develop practical access and key control systems
Train managers and supervisors in WHS compliance
Conduct tailored safety audits and system reviews
Led by Glen Dunkley, a highly experienced Health, Safety and Environment professional, Anzen focuses on proactive, people-centred safety management that strengthens business resilience.
Final Word
Licence checks are not just about compliance. They are a key safeguard for your people and your business. The Custom Bus case proves that failing to verify licences and control access can cost far more than just a fine.
Do not wait for an incident to force change. Book your free, no obligation 30 minute safety health check with Anzen Safety & Training today. We will help you review your systems and build a safer workplace.
Phone: 1300 269 361
Email: info@anzen.com.au
Chat: 30 Minute FREE Safety Health Check
