In Short
- Choose the Right Business Structure: Decide between operating as a sole trader, partnership, or company, and register accordingly.
- Prepare Essential Legal Documents: Ensure you have service agreements, confidentiality agreements, and employment contracts in place.
- Understand Employer Obligations: Familiarise yourself with workplace health and safety laws, insurance requirements, and employee entitlements.
Tips for Businesses
Starting a cleaning business requires careful planning. Select a business structure that aligns with your goals, register your business name, and obtain necessary tax registrations. Draft clear service agreements to set client expectations, and comply with employment laws to manage staff effectively. Prioritising these steps will help establish a solid foundation for your business.
If you are considering starting a cleaning business, there are some things that you should consider before you get started. Like any small business, it can be really rewarding. However, to avoid claims against the company or having to rectify mistakes down the track, you should think carefully about what is required before you start taking on clients.
This article will cover some key legal requirements when starting a cleaning business, including setting up the appropriate structure and preparing the necessary contracts. This includes looking at specific documents, such as:
- cleaning service agreements;
- confidentiality agreements;
- employment contracts;
- contractor agreements;
- supply agreements;
- workplace policies;
- wet and dry hire agreements;
- terms and conditions;
- privacy policies; and
- employer obligations.
How to Start a Cleaning Business
When starting a cleaning business, the first step is to consider how you would like to structure your business.
There are many ways to structure a business, including:
- registering a sole trader ABN;
- incorporating a company; and
- establishing a trust.
Once you have decided on your business structure, you must register, get a business name, and apply for any necessary taxes, such as GST or PAYG. This step is crucial in starting your business as your business structure and registration process will set the foundation for your business’s performance moving forward. It should align with your business goals and overall plans for the business plan.
Some other things you will want to consider when registering your business include:
- service locations;
- types of cleaning services offered (i.e. specialised, residential, or commercial);
- operating hours;
- pricing and payment methods;
- cleaning products and materials (if you are supplying them);
- staffing requirements; and
- marketing and promotional strategies.
Legal Requirements for Starting a Cleaning Business
Ensuring you have the proper legal agreements and contracts is crucial to avoid potential issues. Here are the key legal documents you will need:
Cleaning Service Agreement
A Cleaning Services Agreement is critical as it outlines the responsibilities and duties of both parties, including service scope, operating hours and fees. This agreement helps prevent disputes and covers potential liabilities.
Confidentiality Agreement for Cleaners
Since cleaners often enter private spaces, a Confidentiality Agreement assures clients that their personal information and spaces will be respected and kept confidential. These obligations can usually be included in your cleaning service agreements.
Employment Contract for Cleaners
If you plan to hire staff, an Employment Contract is necessary. This contract should detail the duration of employment, pay, work hours, leave entitlements, job scope, termination terms, and professional conduct. It should also address workplace health and safety obligations.
Contractor Agreement
You might hire contractors for short-term or specialised tasks. A Contractor Agreement outlines the working relationship, specifying duties, payment terms, and the contractor’s responsibilities, such as managing their taxes and insurance.
Supply Agreement
A Supply Agreement is a contract between your business and suppliers of necessary materials. It covers the goods supplied, delivery terms, fees, warranties and liability.
Workplace Policies
Develop comprehensive workplace policies to ensure your employees understand expected conduct, health and safety protocols, dispute resolution processes and other important procedures.
Online Terms and Conditions
If your business has an online presence, it’s important to have clear Terms and Conditions on your website. This document outlines user responsibilities and helps limit liability.
Privacy Policy
As required by the Australian Privacy Principles, any business collecting personal information must have a Privacy Policy. This policy informs clients about the data collected, its use and storage duration.
Continue reading this article below the formEmployer Obligations
As an employer, you have various responsibilities toward your employees, including ensuring a safe working environment, fair treatment, and compliance with Fair Work standards. Maintaining good communication and providing employees with options regarding their work can enhance workplace satisfaction and safety.
The LegalVision Startup Manual provides guidance on a number of common challenges faced by startup founders including structuring, raising capital, building a team, dealing with customers and suppliers, and protecting intellectual property.
The guide includes 10 case studies featuring Australia’s top VC fund partners and leading Australian startups.
Key Takeaways
Cleaning businesses can be profitable, but their success depends on strong contracts and adherence to legal obligations. To recap:
- Choose an appropriate business structure.
- Secure necessary contracts for supplies, employment, and confidentiality.
- Implement workplace policies and fulfil legal obligations to employees.
- Ensure your business website complies with legal requirements, such as having a Privacy Policy and Terms and Conditions.
By following these guidelines, you can establish a solid foundation for your cleaning business and set it up for success. If you have any further questions, our experienced business lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.
Frequently Asked Questions
You must provide a safe working environment, ensure fair treatment, comply with Fair Work standards, and have clear employment contracts.
Include confidentiality obligations in your Cleaning Service Agreements and create a Privacy Policy that complies with Australian Privacy Principles.
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