Award For Cleaning: Understanding Employment Agreements And Legal Obligations In The Cleaning Industry

The cleaning industry in Australia is busy, practical and always in demand. Whether you’re launching a commercial cleaning service, running a mobile domestic team, or growing a specialist operation (like windows or carpets), there’s plenty of opportunity for well-run cleaning businesses.

Success isn’t just about excellent results on-site. It’s also about setting up the right legal and employment framework from day one. In particular, understanding how the Cleaning Services Award 2020 works (the “Cleaning Award”), getting your employment agreements right, and keeping on top of pay rates and conditions will protect your business and your team.

In this guide, we’ll step through what the Award covers, who it applies to, the must‑have legal documents, and the key compliance areas you should keep on your radar as you build a safe, fair and sustainable cleaning business in Australia.

What Is The Cleaning Services Award And Why It Matters

The Cleaning Services Award 2020 (MA000022) sets minimum terms and conditions for many employees who work in the contract cleaning industry in Australia. It works alongside the National Employment Standards (NES), which apply to all national system employees. In simple terms:

• The NES sets the floor for core entitlements such as maximum weekly hours, public holidays, personal/carer’s leave, annual leave, notice of termination and redundancy pay.
• The Cleaning Award adds industry‑specific rules, including minimum rates by classification, ordinary hours and rostering patterns, penalty rates, allowances (e.g. for uniforms, travel or leading hands), overtime rates, and loadings for casual employment.

Underpaying employees or ignoring Award conditions can lead to significant back pay liabilities and civil penalties. Awards aren’t optional: they are legally enforceable, and the Fair Work Ombudsman actively audits businesses in higher‑risk industries like cleaning.

If you manage variable rosters or shifts, it’s also worth brushing up on Fair Work breaks so your schedules and rest periods meet legal minimums.

Who The Cleaning Award Covers (And Common Exceptions)

In general, the Cleaning Award applies where your business’s principal activity is the provision of cleaning services to clients (for example, office, retail, airport, industrial, strata, hospitality or education sites) and you employ staff to perform that work.

However, there are a few important nuances:

• Domestic work in private homes: If a cleaner is engaged directly by a private householder to clean their home, the Cleaning Award will often not apply. Depending on the duties and arrangement, another award (such as the Miscellaneous Award) may apply, or the employee may be award‑free while still protected by the NES. If a cleaning business supplies the cleaner to a home (i.e. the cleaner is your employee), the Cleaning Award commonly applies.
• Independent contractors: The Cleaning Award covers employees, not genuine contractors. That said, calling someone a “contractor” doesn’t make it so. If the individual works under your direction and control, uses your systems, and is integrated into your operations, they may be an employee at law. Misclassification can trigger Award underpayments and other liabilities.
• Supervisors and specialists: Supervisory roles and specialist tasks are generally covered by specific classifications within the Award. Always check the classification definitions to ensure you’re applying the correct minimum rates and allowances.

Bottom line: if cleaning is your core business and you hire workers to perform it, expect the Cleaning Award to apply to those employees. Contracts cannot “opt out” of legal minimums.

Step-By-Step: Setting Up A Cleaning Business The Right Way

1) Choose A Structure And Register

Decide whether you’ll operate as a sole trader, partnership or company. Many owners start as sole traders for simplicity, while others prefer a company for limited liability and growth. You’ll need an ABN either way, and a registered business name if you trade under a name that isn’t your own. If you’re weighing up the differences, this comparison of business name vs company name will help you plan appropriately.

2) Build The Employment Framework

Once you hire staff, you’re responsible for paying at least Award rates and meeting your obligations under the NES. Every employee should have a clear, written Employment Contract that sets out classification, pay type (hourly/casual/part‑time/full‑time), hours, allowances, overtime rules, break entitlements and termination processes consistent with the Award and NES.

It’s good practice to maintain up‑to‑date pay guides for each role and to diarise the annual wage review date so you can adjust rates if the Award increases.

3) Get The Right Licences, Insurance And Systems

• Check local council requirements for signage or operating from certain premises.
• Arrange public liability insurance and workers compensation cover appropriate to your headcount and jurisdictions.
• Put safety systems in place for chemicals, manual handling and working alone/out of hours, including training and incident reporting.

4) Protect Your Relationships With Clear Contracts

Before you start servicing sites, put customer terms in place. A tailored Goods & Services Agreement helps you lock in scope, KPIs, access requirements, variations and extras, pricing, invoicing and credit terms, liability limits, IP and confidentiality, and how either party can end the arrangement.

If you plan to engage individuals or specialist teams on a contract basis, use a proper Sub‑Contractor Agreement so responsibilities, insurances, safety, equipment, confidentiality and payment terms are crystal clear, and to help avoid misclassification risk.

5) Launch, Monitor And Improve

Once you’re operating, build a simple compliance calendar. Include Award wage updates, performance and safety reviews, equipment servicing, and periodic reviews of client contracts and workforce mix (casual vs part‑time, contractors vs employees). A little structure goes a long way to preventing issues later.

Your Legal Obligations As A Cleaning Employer In Australia

Minimum Pay, Hours, Penalties And Allowances

You must pay at least the Award minimums for the relevant classification and employment type, including penalty rates for evenings, weekends or public holidays (where applicable), shift allowances, and overtime when employees work outside ordinary hours. Casuals are entitled to the Award’s casual loading.

Set rosters and breaks in line with the Award and NES. If you run irregular schedules, double‑check your approach to ordinary hours, overtime triggers and rest periods against the Award rules and the NES (and revisit the guide to Fair Work breaks if you’re rostering across multiple sites).

Leave, Notice And Redundancy (NES)

Annual leave, personal/carer’s leave, compassionate leave, parental leave, notice of termination and redundancy pay are NES entitlements that sit above any industry Award. The Award can add detail (for example, how to take leave or additional allowances), but it does not replace the minimums set by the NES.

Superannuation And Payroll

Pay superannuation at the legislated Superannuation Guarantee rate on an employee’s ordinary time earnings. If you’re unsure how to assess what’s in or out, this overview of ordinary time earnings (OTE) will help you sense‑check your approach. You’ll also need to manage PAYG withholding, and depending on your location and headcount, payroll tax. Speak with an accountant about your specific tax and super obligations.

Work Health And Safety (WHS)

Cleaning work can involve chemicals, slippery surfaces, sharps and night work. You must provide a safe system of work: risk assessments, induction and ongoing training, appropriate PPE, chemical handling procedures (including SDS access), and incident reporting. Your WHS duties extend to contractors on your sites, not just employees.

Consumer Law And Client Communications

Even if you mainly service commercial clients, the Australian Consumer Law (ACL) applies to your advertising and your service promises. Avoid misleading claims, price clearly (including any surcharges or call‑out fees), honour statutory guarantees and handle complaints fairly. Clear, written client terms reduce disputes and set expectations from the start.

Privacy And Personal Information

Many small cleaning businesses collect only limited personal information (for example, client contact details or employee information). The Privacy Act 1988 (Cth) generally applies to “APP entities,” which include most businesses with annual turnover of more than $3 million and certain small businesses in specific categories (for example, those that trade in personal information or provide health services). If you are an APP entity, you’ll need a compliant Privacy Policy and robust practices for collection, storage and access.

If you’re not an APP entity, you may not be legally required to publish a Privacy Policy, but having a short, clear notice about how you handle customer and employee data is still good practice - especially if you run bookings online or store customer details.

Intellectual Property And Your Brand

Your brand name and logo can be protected by trade marks. Trade marks do not protect “systems” or methods of work; if you have unique processes, protect them through confidentiality and robust contract clauses. Before you invest in marketing, check you’re not infringing anyone else’s brand and consider an early trade mark application to secure your key brand elements.

Employment Agreements And Workplace Policies For Cleaning Teams

Using the right documents is the simplest way to reduce risk and align your operations with the Award and the NES. At a minimum, consider the following:

• Employment Contract: A tailored Employment Contract for each role that specifies classification, hours, pay structure, overtime, allowances, travel time, uniforms and termination processes, written to align with the Award and the NES.
• Workplace Policies: Clear policies on WHS, bullying, discrimination, fatigue management, incident reporting and vehicle/mobile phone use. Policies help you train consistently and demonstrate compliance if anything goes wrong.
• Client Service Terms: A Goods & Services Agreement that covers scope, variations, access and keys, site inductions, quality standards, re‑cleans, invoicing, late fees, liability limitations and exit terms.
• Sub‑Contractor Agreement: If you supplement your workforce with contractors, use a proper Sub‑Contractor Agreement that addresses control, deliverables, safety, insurances, equipment, confidentiality and IP, and includes compliance with site rules. This also helps combat sham contracting risks.
• Privacy Documentation: If you are an APP entity (or simply want to be transparent with clients), publish a concise, compliant Privacy Policy and ensure your booking forms only collect the information you actually need.

Well‑drafted documents turn common pain points - like access issues, disputed invoices or variation requests - into straightforward conversations, because expectations are clear from the start.

Special Scenarios: Casuals, Subcontracting And Domestic Work

Casual Vs Part‑Time: Picking The Right Mix

Many cleaning businesses start with casuals for flexibility, then shift to part‑time as client schedules stabilise. Casuals receive a loading in lieu of certain entitlements and are a great fit for variable work, while part‑timers provide more certainty for recurring site rosters. If you’re considering changing arrangements, understand the process for changing from full‑time to casual and make sure you issue updated contracts.

Using Subcontractors Without The Headaches

Subcontracting can help you scale quickly, fill skills gaps or cover work in remote areas. The key is clarity. Ensure contractors have their own ABN, insurances and equipment, that they control their hours (within client constraints), and that your Sub‑Contractor Agreement allocates safety responsibilities appropriately. If, in practice, a contractor is treated like an employee, you could be liable for back pay, super and leave entitlements.

Domestic Cleaning In Private Homes

Where a private householder directly employs a cleaner, the Cleaning Award may not apply. The NES will still apply if the person is a national system employee, and another modern award may cover the role depending on duties and context. If your business provides domestic cleaners to households, the Cleaning Award typically applies to your employees. If you operate in the domestic space, take extra care with classification and contracts so you’re paying correctly.

Pricing, Invoicing And Late Payments

Client relationships run smoother when your pricing structure and payment terms are written down and signed. Your Goods & Services Agreement should set out when you invoice (per job, weekly or monthly), accepted payment methods, and any late fees or suspension rights. Make sure your fees and inclusions are described accurately - misleading pricing or performance claims can breach the ACL.

Tax And Super: Quick Note

Budget for PAYG withholding, super contributions and (if you cross the threshold) GST and payroll tax. Super should be calculated on ordinary time earnings; if you’re not certain whether specific allowances or hours fall within OTE, revisit ordinary time earnings and speak with your accountant for tailored advice.

Key Takeaways

• The Cleaning Services Award sets industry‑specific minimums (rates, allowances, penalties, ordinary hours) that sit alongside the NES, which covers leave, notice and redundancy.
• If cleaning is your core business and you employ staff to do that work, expect the Award to apply - domestic cleaners hired directly by a private householder are a common exception.
• Use clear, tailored documents: an Employment Contract for each role, a robust Goods & Services Agreement for clients, and a proper Sub‑Contractor Agreement if you engage contractors.
• Meet your obligations on wages, breaks, overtime, super and WHS from day one; build a simple compliance calendar to stay on top of changes.
• Privacy rules depend on whether you’re an APP entity, but transparent data practices and a concise Privacy Policy are good practice if you collect personal information.
• Protect your brand through trade marks (for names/logos) and use confidentiality clauses for methods or processes - trade marks don’t cover “systems.”
• Get accounting guidance for PAYG, GST and super, and legal help to confirm Award coverage and worker classification before you scale.

If you’d like a consultation on setting up or reviewing your cleaning business employment agreements and legal obligations, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no‑obligations chat.