The woman was inspecting the Kerang V/Line culvert but was not properly supervised, trained and prepared for the task.
The County Court heard she was working in murky water, and among rats, when her dive umbilical cord became caught.
She called for help but could not raise anyone, and she had to shimmy out of the pipe to escape.
Underwater Inspection Services Pty Ltd, was fined $730,000 after sole director, Kent Bedford, pleaded guilty to seven charges under the Occupational Health and Safety Act.
WorkSafe’s investigation found a back-up diver on the Kerang job was not adequately trained to undertake a rescue and was unfamiliar with their ill-fitting dry suit, mask and SSBA.
The communications box through which the diver could call for help, was 50 metres away in a vehicle.
Company workers told their director that they were uncomfortable with certain tasks, and in August 2018, the combined concerns of two workers prompted a call to WorkSafe.
During WorkSafe's investigation, Mr Bedford instructed workers to lie about their experience and training, the court heard.
UIS was fined $600,000 for recklessly engaging in conduct that placed workers in danger of serious injury or drowning, $70,000 for failing to provide necessary training for workers to perform their tasks safety, and $60,000 for failing to provide safe systems of work.
The court heard that on five jobs between May and August 2018 the company repeatedly placed workers in dangerous situations.
Sole shareholder of UIS, Kent Bedford, 53, from Tasmania, was given a 12-month good behaviour bond.
He pleaded guilty to all charges.
He submitted to the court that in the culvert incident the woman was trapped for no more than five minutes and the suit she was using was custom made. He had no prior convictions.
Judge Michael O’Connell took into account his guilty plea and acknowledged that he had pleaded at a relatively early stage of proceedings, which had been delayed due to the pandemic.
WorkSafe Health and Safety executive director Narelle Beer said the scope of offending was astounding given the highly specialised nature of commercial diving.
“Diving is inherently hazardous, with deadly risks such as asphyxiation and drowning, making such a cavalier approach to safety especially egregious,” Dr Beer said.
"WorkSafe won't hesitate to prosecute any duty holder who displays such blatant disregard for their worker’s safety."