Hotel manager forced to repay compo after being caught working at competitor

A former hotel manager has been ordered to repay more than $60,000 in workers compensation payments while on psychological injury leave, after being caught working at a different pub while claiming she had no capacity to work.

A former hotel manager has been ordered to repay more than $60,000 in workers compensation payments while on psychological injury leave, after being caught working at a different pub while claiming she had no capacity to work.

The landmark decision comes as the state government warns skyrocketing psychological injury claims will overload the workers compensation system without reform.

According to a Personal Injury Commission judgment published last month, Jonalee Magtoto Kopko submitted a workers compensation claim about two months after being hired as a venue manager at the Twin Willows hotel in Bass Hill, in 2022.

Twin Willows, owned by Arthur Laundy’s Laundy Trading Pty Ltd, filed an application seeking Ms Kopko repay tens of thousands of dollars in compensation payments, after discovering she was working at the Cambridge Tavern in Fairfield.

In February, the commission ordered Ms Kopko to refund the pub’s insurer, Hospitality Industry Insurance (HII), $50,000 within 60 days.

Ms Kopko filed a psychological injury compensation claim about two months after starting work at the Twin Willows Hotel, pictured. Picture: Facebook

In a witness statement tendered in evidence to the Personal Injury Commission, Mr Laundy said he became “suspicious” of Ms Kopko’s circumstances after a staff member told him they had seen her working at another pub while on psychological injury leave.

“Mr Laundy explained that he was made aware by patrons of the hotel that the respondent had been seen performing duties at the Cambridge Tavern at Fairfield,” the decision said.

“This was in approximately October 2022, when her workers compensation claim was ongoing and payments were being made for incapacity.”

The Personal Injury Commission heard that Ms Kopko was found working at the Cambridge Tavern while on leave and receiving compensation. Picture: supplied

She was also pictured in surveillance footage inside the pokies room, the PIC said.

Ms Kopko failed to repay the $50,000 in time, HII CEO Angus McCullagh said, and now owes $64,253.

“Workers comp is there to support people who genuinely can’t work, helping them to recover and return to work,” Mr McCullagh said.

Pub baron Arthur Laundy gave a witness statement to the Personal Injury Commission. Picture: Richard Dobson

He said the decision ordering repayment was the first of its kind.

Australian Hotels Association deputy chief executive Sean Morrissey welcomed the repayment order, which he said set a “strong precedent”.

Treasurer Daniel Mookhey has vowed to crack down on psychological injury compensation claims. Picture: NewsWire / Nikki Short

“Historically, not enough has been done to combat (this sort of situation), which is costing employers across the state millions of dollars,” he said.

NSW Treasurer Daniel Mookhey last month vowed to overhaul workers compensation to make it harder for people to make psychological injury claims.

He said an explosion in claims injuries like stress, bullying and burnout was costing billions of dollars and making the system unsustainable, warning the scene would collapse without reform.