The recommendation was included in a new report handed yesterday to the workplace relations ministers who met in Melbourne.

National OHS Review Panel chairman Robin Stewart-Crompton briefed ministers on its first report, which contained 75 proposals to harmonise occupational health and safety legislation within five years.

The report focused on duty of care and offences.

''Each year, over 140,000 Australians are seriously injured at work, more than 250 are killed and it is estimated that over 2000 die as a result of work-related disease,'' the report said. ''The social and economic costs are immense.''

The panel proposed three categories of offences, with penalties imposed based on the seriousness of the breaches of workplace safety. ''We recommend significant increases in fines,'' the report stated.

The maximum fine would be $3 million for corporations and $600,000 for individuals who were responsible for the worst breaches.

These individuals could also be jailed for up to five years.

''In addition to monetary fines, there should be more sentencing options remedial orders, adverse publicity orders, training orders, injunctions, compensation orders, community service orders, corporate probation,'' the report recommended.

''No jurisdiction presently provides all of them.''

The ministers asked senior officials to examine the report and provide feedback for next meeting of the Workplace Relations Ministers' Council.

''Ministers requested that the National OHS Review Panel brief key stakeholders as soon as possible on its first report and noted the panel's intention to hold further consultations in preparing its second report [at the end of January] ... '' the communique stated.

Deputy Prime Minister Julia Gillard spoke about the Federal Government's plans for workplace relations legislation.

''Ministers expressed their appreciation at the unprecedented opportunity provided to states and territories to examine the draft legislation and the Federal Government's unparalleled commitment to meaningful consultation on the legislation,'' the communique said.

''Ministers acknowledged the draft legislation as providing the foundation for a national workplace relations system for the private sector based on [Labor's] 'Forward with Fairness' [policy].

''To that end, ministers agreed that senior officials from all jurisdictions would meet further to discuss matters concerning the transition to a new national workplace relations system for the private sector, in particular issues relating to governance and service delivery including compliance and tribunals.''

Ministers noted Ms Gillard's intention to introduce substantive workplace relations legislation into Federal Parliament later this year.