The Labour Hire Authority (LHA) has a current focus on engagement and compliance in the cleaning industry.
Commercial cleaning businesses generally require a labour hire licence, subject to limited exceptions. Host businesses should only use licensed labour hire providers for commercial cleaning services.
Any commercial cleaners operating or advertising without a licence risk penalties exceeding $590,000 for businesses and $145,000 for individuals.
LHA undertakes regular compliance checks through a range of means, which can lead to enforcement action or prosecution, such as the fine issued recently to Ung Services Pty Ltd.
Additionally, any period of unlicensed operation can be considered in assessing a licence application. If granted, the licence may be for a shorter period – increasing costs for these business – and may also involve increased oversight by LHA.
LHA is currently using data and intelligence to identify cleaning businesses that may need a labour hire licence, and advising them of the requirements and impacts of unlicensed operation.
We encourage anyone with evidence of a commercial cleaning business operating or advertising without a labour hire licence in Victoria to submit a report.
To stay up-to-date with relevant resources and case studies, visit the new commercial cleaning industry page on the LHA website – this page will continue to be updated with the latest information and guidance.
When do cleaning providers need a Labour Hire Licence?
Providers that supply workers to clean commercial premises need to be licensed. Exceptions to this include sole traders and corporations with no more than two directors, who clean these premises by themselves, with no help from other workers. Businesses do not require a licence to clean domestic premises.
Further information about when a business needs a labour hire licence can be found on the LHA website.
How can I check if a provider is licensed?
Hosts and providers who subcontract to other cleaning businesses should use our register to ensure that they are only using licensed labour hire providers.
They can also use the Follow my providers tool to be notified if a labour hire provider’s licence is cancelled or suspended.
Heads of supply chains are also encouraged to review their arrangements and ensure that all businesses providing cleaning services for commercial premises have a licence.
Penalties exceeding $590,000 for businesses and $145,000 for individuals may apply for:
- providing labour hire services in Victoria without a licence; or
- advertising labour hire services without a licence; or
- a host business entering an arrangement with an unlicensed labour hire provider.
For more information, or to make an application for a licence, visit the LHA website.