The Cleaning Services Contractors Act 2022: A Guide for Businesses and Cleaners

The Cleaning Services Contractors Act 2022 is a significant piece of legislation in New Zealand designed to uplift standards and protect vulnerable workers within the commercial cleaning industry. Replacing previous voluntary codes of practice, this Act makes it mandatory for all businesses providing commercial, industrial, or institutional cleaning services to be licensed.

Key Objectives of the Act:

• Protect Cleaners’ Rights: To ensure cleaners receive at least the minimum employment standards required by law, including correct pay, holiday and leave entitlements, and are not exploited.
• Create a Level Playing Field: To prevent unethical operators from undercutting compliant businesses by exploiting workers, ensuring fair competition based on quality of service rather than labour cost-cutting.
• Promote Professionalism: To enhance the overall professionalism and reputation of the cleaning industry by ensuring all licensed contractors meet specific standards.
• Provide Assurance to Clients: To give businesses and government agencies confidence that the cleaning contractor they hire is licensed and compliant, mitigating their reputational and legal risk.

Who Needs a Licence?

The Act requires a licence for any business or individual (a “cleaning services contractor”) that employs one or more people to carry out “specified cleaning services” for a commercial client. This includes cleaning in:

• Office buildings
• Retail stores and shopping malls
• Schools, universities, and other educational facilities
• Hospitals and healthcare facilities
• Factories and warehouses (if it’s a separate contract)
• Government buildings

Key Requirements for Getting and Keeping a Licence:

1. “Fit and Proper” Person Test: Key people within the business must be deemed fit and proper, considering any relevant history of insolvency, convictions, or breaches of employment law.
2. Financial Assurance: Applicants must provide a financial bond or other security. This acts as a safeguard to ensure cleaners can be paid what they are owed if the contractor breaches the Act or becomes insolvent.
3. Compliance with Employment Standards: The contractor must prove they meet all obligations under New Zealand employment law, including the Employment Relations Act 2000, Holidays Act 2003, and Minimum Wage Act 1983.
4. Zero Tolerance for Exploitation: The licence can be revoked for serious breaches, including human trafficking, forced labour, or child labour.

What This Means for Clients (e.g., Office Managers, Business Owners):

If you hire a commercial cleaning company, you have a responsibility to only engage a licensed contractor. Hiring an unlicensed cleaner for commercial work can result in compliance notices and penalties. The licence is a simple way to verify that your supplier is a reputable and compliant business.

What This Means for Cleaners:

If you are employed as a cleaner, your employer must be licensed. This gives you greater assurance that your rights will be protected and that you will receive your legal entitlements.

How to Check a Licence:

The Ministry of Business, Innovation and Employment (MBIE) maintains a public Register of Licensed Cleaning Service Contractors. You can easily search for a company online to verify their licence status before engaging their services.

For a company like CleanPalmy Limited, holding this licence is non-negotiable. It is a public commitment to our team and our clients that we operate ethically, comply with all laws, and are dedicated to the professionalism and integrity of the New Zealand cleaning industry.

Disclaimer: This is a general guide and not legal advice. For full details, please refer to the official legislation on the New Zealand Legislation website or contact MBIE directly.