A WorkCover Queensland sweep of the retail sector has found an alarming lack of understanding among employers as to their workers’ compensation obligations.

The work safety authority is has visited 329 retail employers and tenants from the state’s largest shopping centres to gauge levels of workers’ compensation compliance.

It found 18 per cent to be non-compliant with their workers’ compensation obligations. Of this group, 95 per cent of employers were totally uninsured for workers’ compensation, exposing their businesses to substantial costs.

Many said they were simply unaware of their duty of care.

WorkCover Queensland’s Industry Manager - Supply Services, Jane Stevens said employers who ignore their compliance obligations are taking big risks and jeopardising their workers.

“Non-compliant employers are potentially exposing themselves to costly claims which could amount to hundreds of thousands of dollars depending on the severity of the injuries sustained by the worker,” Ms Stevens said.

“Holding an accident insurance policy is your best defence against the costs of work-related injuries.

“Queensland’s retail sector is one of the state’s largest employers with over 250,000 workers. So it is critical that we continue to help employers maintain a safe and healthy work environment and meet their workers' compensation and return to work responsibilities.”

WorkCover Queensland says the150,000 businesses that are part of its scheme benefit from the lowest average premium rate in Australia - $1.20 per $100 in wages.

They also enjoy one of the nation's fastest return work rates, with over 90 per cent of injured workers returning to work within 12 months.

Details on employers’ rights and responsibilities are available here, with information on who should be covered for workers' compensation here.