The victim was working at Enviroflame Firelogs in Delacombe on July 3, 2019 when director Frederick Coulter reversed a forklift, hitting an item that was leaning against the wall.

The Ballarat Magistrates' Court heard on Tuesday Coulter directed the victim to pick up the item but while he was doing so, Coulter reversed the forklift into the victim.

The victim was pinned between the forklift and the wall, crushing his lower body and causing multiple injuries.

Coulter called an ambulance and the victim was transported to hospital where he underwent surgery for his broken ankle.

In a victim impact statement read to the court, the victim said he was a different person now, as he was impacted emotionally, financially and physically by the incident.

He said he suffered post traumatic stress disorder, anxiety, could not sleep well and was in constant pain.

"Being in so much pain has changed my life," the victim wrote in his statement.

"I used to be fit and active and have had to learn how to walk and stand again.

"Two-and-a-half years later I am still in constant pain and use a walking stick."

WorkSafe prosecutor Morgan Brown said Coulter did not hold a valid forklift licence at the time of the incident.

WorkSafe inspectors found there was no traffic management systems in place in the factory to prevent collision with pedestrians or restrictions on access to the work area.

The company was not able to produce any documents on work safety procedures as none existed.

One inspector said Coulter made comments after the incident that the victim had been 'stupid' and 'you can't help stupid'.

Defence lawyer Kim Packer said Coulter reacted defensively and 'in the heat of the moment' when he made those comments and was remorseful for his actions.

WorkSafe charged both Coulter and the company for the offending and both pleaded guilty.

"It is hard to describe the feeling of going to work at 9am in the morning and by 11am not knowing if I will ever see my kids again," the victim said.

The victim said he did not have a social life anymore and could not play sport.

He said he could barely walk with his walking stick at times.

"People should not have to go to work and risk getting injured or killed," Ms Brown said.

In defence submissions, Ms Packer said the incident was a result of an 'unfortunate set of circumstances'.

She said Coulter instructed the victim to walk in front of the forklift to pick up the fallen item, but he instead walked behind and Coulter did not know he was there when he reversed.

Ms Packer said the company was in the process of setting up the workplace and WorkSafe requirements had not been established at the time of the incident.

"Had the business been fully operational, traffic management would have been in place," she said.

Ms Brown said the workplace was operational, so traffic management plans should have been in place.

"There was a complete failure by the company to assess the risks," she said.

"The paramount consideration for sentencing is general deterrence."

The court heard there was a fire at Enviroflame Firelogs' Delacombe factory after the incident, so all assets were destroyed.

Ms Packer said the company had no income because it did not commence operation and was in the process of being de-registered.

She said Coulter was 86-years-old, had health issues including loss of hearing and sight.

She said he would not work again and his only income was a pension.

"He lost all of his intellectual property as a result of the fire. He has developed mental health conditions which includes depression," Ms Packer said.

"He has been self-employed for over 60 years and employed large numbers of employees that operated machinery without incident.

"He has always been remorseful."

Ms Packer asked the magistrate not to record a conviction for both Coulter and the company and for no financial penalty to be imposed for the company.

"The company has no income and no means to pay the fine," she said.

Magistrate Mark Stratmann said general deterrence was the paramount concern and the offending was serious.

"Departing from statutory obligations is something that cannot occur," he said.

"Measures have to be put in place at the outset because worker safety is a critical factor in the operation of any business.

"General deterrence and denunciation weighs high. It is a serious breach. The risk was significant.

"Systems were not in place and the result has been a terrible injury for a person who went to work and expected to come home."

Enviroflame Firelogs was convicted and fined $40,000 and Coulter was convicted and fined $7500.

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