A man caught driving taxis while receiving weekly payments from Victoria's workers’ compensation scheme after he injured his arm while working as a mechanic will repay more than two years of benefits.

Muhammad Faisal, 38, pleaded guilty in the Werribee Magistrates' Court to fraudulently obtaining payments. He will repay $96,196 and serve a two-year community corrections order with a condition to perform 225 hours of community work.

An inspection of his financial records found that while receiving injury support he performed multiple shifts driving taxis for several companies and also worked as a ride-share driver.

WorkSafe's Insurance Business Unit executive director Roger Arnold says there will always be a small minority who are tempted to cheat the system. WorkSafe “will not hesitate to take action against the kind of dishonesty that undermines the integrity of the entire scheme", he said.

Mr Faisal's compensation claim was accepted by WorkSafe in mid 2017 and he received weekly payments until November 2019.

An investigation revealed Mr Faisal attended a number of medical examinations where he failed to inform doctors that he had returned to work and submitted certificates of capacity declaring he had not earned any income.

In sentencing, the court took into account Mr Faisal's agreement before the hearing to repay the full amount he had fraudulently claimed.