A Labour Hire Authority (LHA) campaign targeting new commercial cleaning businesses is yielding strong results, with most now applying for a labour hire licence soon after registering their business.
LHA is committed to helping new commercial cleaning businesses understand their obligations under the Labour Hire Licensing Act 2018 (Vic).
Commercial cleaning and labour hire law
Under the Act, any business that supplies a worker – other than a company director – to provide cleaning services at commercial premises in Victoria is a labour hire provider.
It is important that businesses do not advertise or provide these services before a labour hire licence is granted, as significant penalties can apply, exceeding:
- $150,000 for a company and $35,000 for an individual for advertising services
- $600,000 for a company and $150,000 for an individual for providing services.
LHA’s campaign for new businesses
LHA is now contacting new commercial cleaning businesses – when they obtain an Australian Business Number (ABN) or register for GST – to prompt them to consider their obligations and seek appropriate advice around licensing.
LHA is also working directly with accountants to ensure they inform their commercial cleaning clients of the obligation to obtain a labour hire licence.
This proactive engagement supports businesses and their advisers to reduce risks around non-compliance, including penalties or business disruption, and gives businesses every opportunity to start off on the right foot.
So far this year, the majority of commercial cleaning services that LHA has prompted – over 70% – have applied for a licence, without follow-up or compliance action.
LHA is now reviewing those businesses who did not apply for a licence, to assess any necessary compliance or enforcement action.
Some businesses may not require a labour hire licence – you can read more about the requirement for commercial cleaning businesses to licence, and where exemptions apply, on the LHA website.