Why Some Commercial Cleaning Quotes Are Significantly Lower — And What That Means for Your Building

Supporting guide: For the main service page, see our CM3 Certified Commercial Cleaning in Sydney page.

If you’ve ever requested quotes from multiple commercial cleaning companies and received prices that vary by 30, 40 or even 50 percent for what appears to be the same service, you’ve encountered one of the more uncomfortable realities of the cleaning industry in Australia.

The difference is rarely explained by efficiency or smarter operations. It almost always comes down to one of two things: what the company is actually paying its staff, and whether it’s carrying the right insurance.

The Cleaning Services Award Sets a Legal Floor — Not Everyone Follows It

Commercial cleaners in Australia are covered by the Cleaning Services Award 2020, a modern Award administered by the Fair Work Commission. The Award sets minimum hourly rates, penalty rates for evenings, weekends and public holidays, entitlements to leave, and other conditions of employment.

These aren’t optional. They are the legal minimum that every cleaning company operating in Australia is required to pay.

The day rate, evening loading, Saturday rate, Sunday rate and public holiday rate that we publish in our commercial cleaning pricing guide are all Award-compliant rates. When a company quotes substantially below what Award-compliant pricing would suggest, the question worth asking is how they’re achieving that margin.

In practice, a significant portion of the commercial cleaning industry in Australia — particularly smaller operators — pays staff in cash, off the books, at rates well below the Award. Workers in this situation typically have no formal employment, no superannuation, no workers’ compensation coverage, and no recourse if something goes wrong.

This isn’t a fringe issue. It’s widespread, and it’s the primary mechanism by which some operators undercut compliant companies on price.

What This Means for You as a Building Owner, Strata Manager or Facilities Manager

This isn’t just an ethical concern — it has direct legal and financial implications for the person engaging the contractor.

Workers’ compensation exposure. If a cleaning worker is injured on your premises and their employer has no workers’ compensation cover — because the employment relationship doesn’t formally exist — the injured worker may have grounds to pursue a claim through other channels, including against the property owner or manager. The legal landscape here is complex, but the risk is real.

WHS duty of care. Under the Work Health and Safety Act 2011, a person who conducts a business or undertaking (which includes strata managers and facilities managers) has a duty to ensure the health and safety of contractors working on their site. Engaging a contractor you know, or reasonably should know, is not operating compliantly is a relevant factor in any WHS investigation.

Liability for unpaid wages. Changes to the Fair Work Act have progressively extended liability for underpayments up the supply chain. Depending on the structure of the arrangement, the organisation engaging the cleaning company can in certain circumstances be found liable for unpaid entitlements owed to the workers actually doing the cleaning.

Insurance gaps. Cash-paid workers typically aren’t covered by the employer’s public liability policy. If property is damaged or a third party is injured during a clean, the policy may not respond if the worker performing the task wasn’t a legitimate employee.

The Under-Insurance Problem

Separate from the wage issue, under-insurance is common among smaller cleaning operators. Public liability insurance for commercial cleaning should be a minimum of $10 million — many strata management groups and larger corporates require $20 million as a contractual condition.

Some operators carry minimal cover, allow policies to lapse, or hold policies with exclusions that effectively render the coverage meaningless for the work they’re doing. A certificate of insurance is easy to produce — verifying that it’s current, at the right level, and actually covers the work being performed is another matter.

This is one of the reasons CM3 certification exists. As an independently verified compliance register, CM3 confirms that a contractor’s insurance is current and at the required level — not self-reported.

How to Identify a Compliant Cleaning Company

When comparing quotes, the following questions are worth asking directly:

“Are your staff employed and paid under the Cleaning Services Award?”
A compliant operator will answer yes without hesitation. Evasive or vague answers are informative.

“Can you provide a current certificate of currency for public liability insurance?”
Ask for the document, check the coverage level, and check the expiry date. Don’t accept verbal assurances.

“Are you CM3 registered?”
CM3 certification requires independent verification of insurance, WHS policies and employment compliance. It’s the clearest single indicator of a company that’s operating properly.

“Do your cleaners have workers’ compensation cover?”
If staff are paid cash off the books, they won’t. A compliant employer will confirm their workers are covered.

Is the quote realistic?
Award-compliant cleaning in Sydney for an evening shift currently runs between $55 and $65 per hour. A quote that implies a rate well below this should prompt questions about how the labour cost is being managed.

Showpiece’s Position

Showpiece Commercial Cleaning has operated in Sydney since 2001. Every cleaner we employ is paid in accordance with the Cleaning Services Award 2020 — including all penalty rates for evening, weekend and public holiday work. We carry full public liability and workers’ compensation insurance. We are CM3 certified, and our compliance documentation can be verified directly through the platform.

We don’t compete on price with companies that achieve their margin by paying staff less than the law requires. What we offer is a service that’s properly costed, properly staffed, and backed by genuine compliance — so that the building manager, strata committee or business owner engaging us doesn’t carry a risk they may not even know they’re holding.

If you’d like to verify our compliance credentials before requesting a quote, you’re welcome to do so. We consider that a reasonable and sensible thing to ask of any contractor.

Request a quote →   Read about our CM3 certification →

Frequently Asked Questions

Is it legal to pay cleaning staff cash in hand?

Paying staff in cash is not automatically illegal — but paying below Award rates, failing to withhold tax, or not paying superannuation are all legal violations regardless of the payment method. The issue isn’t the cash itself; it’s the non-compliance with Award obligations, taxation law and superannuation requirements that typically accompanies it.

Can I be held responsible for my contractor’s underpayments?

Potentially. Amendments to the Fair Work Act have expanded liability for labour hire and supply chain arrangements. The extent of liability depends on the specific circumstances, but the trend in Australian law is toward greater accountability for businesses that benefit from underpaid labour, even indirectly. Legal advice should be sought if you have specific concerns.

What is the Cleaning Services Award 2020?

It is the modern Award covering employees in the cleaning industry in Australia, administered by the Fair Work Commission. It sets out minimum wages, penalty rates, leave entitlements and other conditions for cleaners employed under the Award. The full Award is publicly available at fairwork.gov.au.

How do I report a cleaning company I suspect is underpaying workers?

Reports can be made to the Fair Work Ombudsman at fairwork.gov.au. The Fair Work Ombudsman investigates wage theft and non-compliance with the National Employment Standards and modern Awards.

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Showpiece Commercial Cleaning has been servicing Sydney businesses since 2001. We are CM3 certified, fully insured, and Award-compliant. We service offices, strata buildings, schools and commercial facilities across Sydney’s CBD, Inner West, Eastern Suburbs, Southern Sydney and Western Sydney. Contact us to discuss your requirements.