Compliance Guide

Modern Slavery Act Compliance: What to Ask Your Cleaning Contractor

Commercial cleaning is consistently identified as one of Australia's highest-risk sectors for Modern Slavery. Wage underpayment, sham contracting, labour hire chains, and undocumented subcontractors are well-documented across the industry.

For Australian organisations required to report under the Modern Slavery Act 2018, this creates a specific procurement responsibility: knowing the cleaning contractors in your supply chain aren't a slavery risk isn't optional. It's a reporting obligation.

What the Modern Slavery Act 2018 Requires

Australian entities with annual consolidated revenue of more than $100 million are required to lodge a Modern Slavery Statement each year with the Department of Home Affairs. Statements must:

  • Identify modern slavery risks in the entity's operations and supply chain
  • Describe actions taken to assess and address those risks
  • Report on the effectiveness of those actions

The Act applies to over 3,000 Australian entities, and "supply chain" explicitly includes cleaning contractors, security companies, and other facilities management suppliers. For organisations below the $100M threshold, voluntary reporting is increasingly common as clients, investors, and regulators expect supply chain transparency regardless of legal obligation.

Why Commercial Cleaning Is High-Risk

Multi-layer subcontracting

Many cleaning companies win contracts through competitive tender, then subcontract the actual cleaning work. That subcontractor may further subcontract. By the third or fourth layer, labour conditions become opaque and enforcement is essentially impossible.

Visa status vulnerabilities

Cleaning work attracts migrants, some of whom hold visa conditions that make them reluctant to report exploitation. Workers on student visas, temporary skilled visas, or irregular status are particularly vulnerable to wage theft and coercive control.

Cash-in-hand arrangements

Some cleaning businesses pay workers in cash, below Award rates, with no payslips, tax, or superannuation. This is wage theft and a modern slavery risk.

Sham contracting

Workers classified as independent contractors who have no genuine independence are legally employees. This classification is used to avoid Award rates, super, and leave entitlements.

The Fair Work Ombudsman has repeatedly prosecuted cleaning companies for these practices. They are not edge cases. They are industry patterns.

6 Questions Your Procurement Team Should Ask Every Cleaning Contractor

  1. Do you directly employ your cleaning staff, or do you use subcontractors or labour hire?

    Direct employment is the highest-risk mitigation available. Each layer of subcontracting adds opacity. Look for a firm "all staff are directly employed" answer, not "primarily" or "mostly."

  2. What Award or Enterprise Agreement covers your workers?

    All cleaning workers in Australia should be covered by the Cleaning Services Award 2020 (or a registered Enterprise Agreement that provides equivalent or better conditions). Ask for the specific classification and pay rate applied to your site.

  3. Do you pay superannuation and provide payslips to all workers?

    Seemingly basic, but non-compliance with super and payslip obligations is a leading indicator of broader exploitation. Ask to see a sample payslip (redacted for privacy).

  4. Have you had any Fair Work Ombudsman investigations or compliance actions in the last three years?

    This should be a standard due diligence question. Contractors with histories of FWO action represent unacceptable supply chain risk for Modern Slavery Act reporters.

  5. Do you have a Modern Slavery statement or policy?

    Smaller operators may not yet have a formal statement but should be able to articulate their employment model and demonstrate compliance clearly.

  6. Can you provide evidence of your employment model for our Modern Slavery report?

    Reputable contractors will be able to provide this. Evasive answers, vague responses, or inability to document employment practices are red flags.

How Empower Clean Is Structured to Eliminate These Risks

Empower Clean was built around a single principle: transparent, fair employment with no room for exploitation.

Direct employment only

Every Empower Clean team member is a direct employee. No subcontractors. No labour hire. No hidden layers. Every person cleaning your facility has a named contract, a payslip, and full Award entitlements.

Award-compliant pay

All staff are paid under the Cleaning Services Award 2020 at the correct classification. Superannuation is paid in full and on time. Payslips are issued for every pay cycle.

Employment model designed for underrepresented workers

Empower Clean specifically employs migrants and people facing systemic barriers to work. These are workers who, in other contexts, are most vulnerable to exploitation. Our model protects them with stable hours, transparent pay, and proper onboarding.

Documentation for your Modern Slavery report

Empower Clean can provide a formal employment model statement for inclusion in your Modern Slavery documentation. We support our clients' compliance obligations, not just their cleaning requirements.

What This Means for Your Organisation

If your organisation is required to report under the Modern Slavery Act, or voluntarily reports, selecting Empower Clean removes a documented supply chain risk, provides clear evidence of supply chain due diligence, and contributes to your social procurement cleaning services story.

If your organisation is in Victoria and subject to the Social Procurement Framework, Empower Clean's social enterprise structure is built to support your obligations. Speak to us about how we can be documented in your procurement reporting.

Where this lands next depends on who is asking. Corporate sustainability teams building a defensible supplier chain will find the detail they need on corporate ESG cleaning services, while B-Corp-certified organisations qualifying a cleaning supplier against their own supply-chain standards should start with cleaning for B-Corp organisations.

Cleaning contracts are typically small relative to total procurement spend. But they represent a disproportionate Modern Slavery risk. Selecting a contractor that eliminates that risk is both the right thing to do and a demonstrably sound compliance decision.

Questions

Frequently asked questions

Does the Modern Slavery Act apply to cleaning contractors?

The Act applies to entities with revenue over $100M, and those entities must assess and report on risks throughout their supply chain, including cleaning contractors.

What's the penalty for not reporting under the Modern Slavery Act?

There are currently no financial penalties for non-compliance, but the Home Affairs Minister can publicly name non-compliant entities. Reputational and commercial risk is significant, particularly for listed companies and government contractors.

How do I know if my current cleaning contractor is compliant?

Ask the six questions listed above. If your contractor cannot clearly answer whether all staff are directly employed, what Award applies, or whether they've had FWO compliance actions, that's a risk you need to document.

Is Empower Clean able to provide documentation for Modern Slavery reporting purposes?

Yes. Contact us and we will provide an employment model statement for your supply chain documentation.

Need a compliant cleaning supplier?

Empower Clean is Melbourne's award-rate commercial cleaning social enterprise — built for procurement teams with modern slavery, ESG, and social procurement compliance obligations.

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If your organisation is seeking a cleaning partner that aligns with ESG, sustainability, or social procurement objectives, we would welcome a conversation.

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