Business operators are always very price conscious, and when it comes to contract cleaning services, many businesses put price before other considerations, but this approach can sometimes lead to exposure to further risks. A true contract cleaning service will save you money in the long term and reduce risk to your business.
Contract Cleaning Contractor or Employee?
The issue in Australia arises over the definitions between who is a contractor and who is an employee. Sometimes employers will employ a person to clean who they think is a bona fide contractor, but the relationship may actually be one of an employee.
Where there is an employee relationship, additional costs such as workcover and superannuation must be paid.
Just because a person has an ABN doesn’t make them a contractor.
Here are a few quick pointers:
- A contractor will supply all their own equipment
- Contractors have staff on hand to cover illness and the autonomy to send in someone else to do the job should a staff member be unable to attend.
- Contractor will have all their own insurance in place
- A contract cleaning firm sets out the conditions
- Your contract will be between the firm and your business, not the individual doing the work
A great article on busting myths around contractors can be found here
When you use a contract cleaner such as Australian Customised Cleaning Services, you can be sure that the arrangement is a true contracted service. We have a team of our own employees and we look after insurance and superannuation for them.
We reduce the risk profile for your business, because we carry those costs. We are passionate about Geelong small businesses and we want to help your business succeed by providing premium reliable and high quality services.
Penalties for businesses who are actually in an employee relationship can run into tens of thousands of dollars, plus the need to pay tax on wages and superannuation.
We have further articles on minimising risk you may like to read. Just click here.
Useful tools and resources
Use the ATO decision making tool to help you decide what the relationship is between you and your contractor (or employee).
You can learn more on the Fair Work Australia website here.
Contact us on 0417 379 181 or via our website