The NDIS Quality and Safeguards Commission on Tuesday announced it had started Federal Court civil penalty proceedings against Oak Tasmania, which provides employment to people with disability.
It is alleged Oak Tasmania failed to comply with conditions of its registration and the NDIS code of conduct.
The commission says the organisation failed to provide access to adequately trained support staff and failed to properly manage risks to participants.
Oak Tasmania also allegedly failed to properly administer medical devices and medication, and failed to properly supervise an adolescent in their care.
Between July 2019 and December 2023, it failed to report 202 reportable incidents within the legally required 24 hours and 471 within the necessary five days.
Some of the reportable incidents relate to unlawful sexual contact and sexual misconduct as well as "serious injury and neglect".
The commission says the failure to notify the commission within requisite times may have deprived people of prompt, adequate and necessary treatment or responses to the harm they suffered.
"The NDIS code of conduct applies to all providers and workers for very good reason; to keep everyone safe," acting NDIS commissioner Michael Phelan said.
"Providers must ensure their staff are properly trained and that any injuries or harm suffered by participants are promptly reported to the NDIS Commission as required."
The commission has the power to seek civil penalties when a provider has allegedly failed to deliver support and services in a safe and competent manner, with care and skill.
Oak Tasmania has been contacted for comment.
