Amin Dreik, 50, was sentenced in the Frankston Magistrates' Court on Thursday 22 August after pleading guilty to a single charge of fraudulently obtaining payments.
He was convicted and fined $10,000 in addition to the restitution order.
The court heard Dreik began receiving workers compensation in February 2021 after lodging a claim for a mental health injury due to workplace bullying while working as a factory hand, yard worker and driver at a pool heating company.
He received weekly payments until January 2022 when they were stopped after a WorkSafe investigation revealed he had been working for his own business.
The court heard that throughout this period, Dreik continued to sign certificates of capacity declaring he had not engaged in any form of employment or self-employment.
Bank records showed payments with references to vehicles to accounts in Dreik's name from a number of businesses and four witnesses gave evidence that they had paid him for vehicle detailing work.
A surveillance investigation report provided to the court included footage of Dreik cleaning a car interior after it arrived at his premises in December 2021.
Return to Work Victoria Executive Director Jason Lardelli said fraud, while relatively rare, was deeply disappointing as it took resources away from injured workers who needed support.
"Workers compensation provides crucial support to people recovering from workplace injuries or illness and is such an important part of their recovery and return to work," Mr Lardelli said.
"To deliberately deceive the system for personal gain is unacceptable and anyone who does this risks prosecution and serious penalties."