Commercial cleaning industry

To prevent worker exploitation, LHA targets specific harms common within the labour hire industry when assessing licence applications and through compliance activities on licence holders.

Key issues affecting the commercial cleaning industry include:

• Engaging workers as independent contractors
• Subcontracting arrangements
• Workplace health and safety

For providers operating in industries with higher risks of worker exploitation and unlawful conduct, LHA applies standard conditions to all new licences, as well as progressively to existing licences. 

These standard conditions act to further: 

• increase transparency, by ensuring all workers receive information on their rights, and through reporting on the use of subcontractors, payroll services, and any change in industry 
• enforce integrity, through restrictions on cash payments, the use of independent contractors and subcontractors, and clear requirements around accommodation and provision of PPE. 

For more information and guidance visit the Licence conditions page.

• Cleaning industry guidance: Providers and Hosts
• Follow my Providers
• Labour Hire Licence Register

The examples below are for illustrative purposes only. You should consider your particular circumstances and seek legal advice if you are unsure.

Scenario 1: Sole trader

Judy operates Judy's Cleaning as a sole trader. She has one employee who works alongside her to provide cleaning services to residential clients. Judy determines how the cleaning services are delivered, provides the equipment, directs her employee, and remains responsible for performing the residential cleaning contracts.

Judy is not providing labour hire services in relation to her cleaning business. In relation to the commercial cleaning contracts, Judy personally performs the cleaning work and does not supply workers to the commercial client.

In relation to domestic cleaning, Judy's employee is not supplied to another business to perform cleaning work at commercial premises. The arrangement involves Judy providing cleaning services to private individuals in their residences, rather than supplying workers to another business. Judy is not required to hold a labour hire licence.

Scenario 2: Office building cleaners

The building manager of a large office building engages Best Commercial Cleaners Pty Ltd (BCC) to supply cleaners. The cleaners work rotating shifts and perform their duties under the direction of the building manager.

BCC is taken to provide labour hire services because it supplies workers to perform cleaning activities at a commercial premises. BCC is a labour hire provider and is required to hold a labour hire licence.

Scenario 3: Hotel peak period

A hotel complex engages AAA Hotel Cleaning Pty Ltd (AAA Hotel Cleaning) to supply two additional cleaners for three weeks during a peak period. The cleaners are directed by the hotel manager as to what areas to clean and when, and they use cleaning products supplied by the hotel. AAA Hotel Cleaning pays the cleaners.

AAA Hotel Cleaning is taken to provide labour hire services because it supplies workers to perform cleaning activities at a commercial premises. AAA Hotel Cleaning is a labour hire provider and is required to hold a labour hire licence.

Scenario 4: One-director company

Joe is a commercial cleaner and the sole director of Cleanest Cleaner Pty Ltd (Cleanest Cleaner). He cleans kindergartens and medical centres by himself without any staff. Cleanest Cleaner does not require a labour hire licence because Joe personally performs the cleaning work and the company does not supply workers to clients

Scenario 5: Domestic and commercial

Specialist Cleaners Pty Ltd (Specialist Cleaners) provides specialist cleaning services to both domestic and commercial customers. Specialist Cleaners pays its workers and invoices clients for the hours worked.

In relation to commercial cleaning, Specialist Cleaners is taken to provide labour hire services and is required to hold a labour hire licence because it provides workers to perform cleaning activities at commercial premises.

If Specialist Cleaners only provided domestic cleaning services, it would not require a labour hire licence, as the arrangements concern cleaning services provided to private individuals in their residences rather than the supply of workers to another person.

Scenario 6: Laundry service (not labour hire)

Bright White Laundry Pty Ltd (Bright White Laundry) collects soiled uniforms from Aussie Nuggets Pty Ltd and returns them cleaned. All laundering is carried out at Bright White Laundry’s own industrial premises, under the direction and control of its management.

The arrangement is for the provision of a specialised laundry service, rather than the supply of labour. Bright White Laundry uses its own workers, equipment, and expertise to deliver a defined outcome.

This is not a labour hire arrangement.

Scenario 8: High-rise window cleaners

High Flying Window Cleaners Pty Ltd (High Flying Window Cleaners) supplies workers to a building manager to clean high-rise windows at a commercial premises. The workers perform their duties under the direction of the building manager, who determines the work to be undertaken.

Cleaning commercial premises includes cleaning activities undertaken at the premises, including cleaning the building’s windows. High Flying Window Cleaners is taken to provide labour hire services and is required to hold a labour hire licence because it provides workers to perform cleaning activities at a commercial premises.