As a cleaning company operating in Australia, compliance with the Cleaning Services Award 2025 is crucial for your business’s legal security and financial health. Failing to adhere to award standards can lead to significant penalties from the Fair Work Commission. This blog outlines the top five common mistakes that could trigger a Fair Work audit, helping you stay informed and compliant.
Top1：Employee Misclassification (The $50k Mistake)
The Error: Paying Level 3 cleaners (hazardous waste) at Level 1 rates (basic cleaning).
Case Study: Sydney Cleaning Co. fined $52,800 for underpaying 7 hospital cleaners by $7.54/hr over 2 years.*
The Fix:
| Level | Key Duties | 2025 Base Rate |
| 1 | Vacuuming, trash removal | $23.56 |
| 3 | Biohazard cleaning, PPE use | $25.20 |
| 5 | Site management | $28.37 |
Top2： Incorrect Overtime Calculations
The Error: Not paying overtime after 10 hours/day or 38 hours/week
Miscalculating rates (1.5x first 2 hours, 2x thereafter)
Penalty: Up to $18,780 per violation
Correct Formula: Weekday Overtime
- Hours 38-40: 1.5x
- Hours 40+: 2x
Top3：Unpaid Travel Time (2025 Update)
The Error: Not paying for time between job sites.
Case Study: Melbourne office cleaner awarded $14,200 backpay for unpaid inter-site travel.
New Rules:
- Travel >30 mins between sites = paid work time
- Counts toward daily overtime threshold
Top4: Wrong Casual Loading Application
The Error:
- Forgetting the 25% loading
- Applying it after penalties (should be before)
Correct Calculation:
- Base Rate × 1.25 = Casual Rate
- Then apply penalties
Example: Level 4 Casual on Sunday:
- $26.65 × 1.25 = $33.31
- $33.31 × 1.5 (Sunday) = $49.97/hr
Top5: Ignoring Split Shift Rules
The Error: Not paying 3-hour minimum engagements per shift segment.
Penalty: Typical backpay of $2,800 per employee
Compliance Checklist:
- Pay 3h minimum for AM and PM shifts
- Track travel time between splits
- Apply penalties separately to each engagement
How Workstem Helps to Avoid These Mistakes?
Simplify award interpretation and payroll processing with Workstem, the all-in-one workforce management & payroll software designed for every industry. Our system supports 122+ modern awards & 34 EAs, including the Cleaning Services Award 2025, and keeps you up-to-date with changes in wage rates, penalty rates, and overtime rules.
Managing payroll under the Cleaning Services Award 2025 can be complex. Workstem’s workforce management software ensures:
- Our award interpretation software
- Auto-calculates penalties + casual loading
- Flags classification errors
- Generates Fair Work-compliant payslips
- Seamless integrations with Xero, NetSuite, and more
Choose from our Standard or Advanced plan to suit your business needs, and stay Fair Work compliant with confidence.
Book a free demo with our payroll experts and experience how Workstem can streamline your payroll and workforce operations.
FAQs About the Cleaning Services Award 2025
Q1: What’s new in the 2025 Cleaning Services Award?
A1: 3.5% minimum wage increase (projected) for all cleaner levels；Stronger record-keeping requirements for remote/work-from-home cleaners；Clarified overtime rules for mobile workers (travel time between sites now counts toward daily hours).
Q2: Are casual cleaners entitled to the same benefits as part-time or full-time employees?
A2: No, casual cleaners receive a casual loading but do not have access to paid leave benefits provided to part-time or full-time employees.
Q3: What are the common penalties for misclassifying cleaning staff?
A3: Employers can face fines and legal penalties if they incorrectly classify cleaning staff or fail to comply with the pay rates set forth in the Cleaning Services Award.
Q4: Do part-time cleaners get penalty rates?
A4: Yes! Part-timers receive the same penalties as full-timers:
- 125% Saturdays
- 150% Sundays
- 250% Public Holidays
Q5: Can Workstem help with casual employee management?
A5: Absolutely. Workstem supports casual loading, dynamic rosters, and real-time tracking to ensure casual workers are paid correctly and fairly under the award.
Q6: Is Workstem compliant with Fair Work and STP2?
A6: Yes, Workstem is fully compliant with Fair Work obligations and Single Touch Payroll Phase 2 (STP2), ensuring seamless reporting to the ATO.
Read More:
Cleaning Services Award Guide [MA000022]
Automate MA000022 compliance with Workstem’s payroll software. [Start Free Trial]
