The Turning Point: Why In-Tec Walked Away from the Contractor Model for Good

February 17th, 2025 | 6 min. read

We’ve never engaged in sham contracting. But I won’t pretend our past didn’t have its complexities. There was a time when our practices (while technically compliant), were close enough to the line that I’m not proud of how they looked from the outside. And that’s something I think business owners need to be honest about. Because hiding from it doesn’t help anyone—not the clients, not the industry, and certainly not the workers.

Today, we’re loud and clear on where we stand:

I've showed you how to tell if your commercial cleaner is using sham contractors.
I've discussed why you want a cleaner who has employees vs. contractors.

We’re fierce advocates against sham contracting. It's the kind of hidden exploitation that is often just modern slavery dressed up with paperwork. That's why these conversations matter. Why structure matters. Why accountability matters. Why your cleaning company’s business model is just as important as the price on the quote.

But if we’re going to keep pushing for change—and if we’re going to keep asking others to do better—then it’s only fair that we tell the full story. Including how we got here. Because what we’ve learned didn’t come from standing at a distance pointing fingers. It came from making hard calls, cleaning up our own practices, and choosing to take a different path. This is that story.

Why We Shifted to Independent Contractors

On December 14, 2005, the then-John Howard Liberal government introduced the WorkChoices legislation, with the support of the Democrats. This drastically reshaped employer-employee relationships across the country. Specifically, the legislation stripped away many essential employee rights, leaving businesses—including ours—scrambling to find compliant ways to meet their needs without compromising operational flexibility.

We had two choices—set up an enterprise agreement or move to an independent contractor model. We started with an enterprise agreement, but it quickly became clear that it only made things worse for employees. Left with no real alternative, we shifted to the contractor model.

We Thought We Were Doing the Right Thing

With our lawyer, Jonathon Hadley, we put proper Independent Contractor agreements in place. We made sure contractors were looked after while staying compliant with every law and regulation. No set hours, no uniforms—nothing that blurred the line between contractor and employee. We convinced ourselves that by following the rules to the letter, we were doing the right thing.

Of course, over time, things changed. The biggest shift came in 2009 with the Fair Work Act, introduced by the Rudd government. It reversed much of WorkChoices, restoring crucial protections for employees. But it also introduced new challenges—like Unfair Dismissal protections—pushing many companies to either explore or stick with the contractor model just to get business done.

That’s where the problems started.

In our industry—now, sadly, over 90% of it—these rules became a loophole, a way to exploit workers. I’d call these operators the Wall Street Gordon Geckos of the cleaning world—driven by profit, cutting corners wherever they could. They saw the same regulations and thought, “If there’s blood on the streets, buy real estate.” The result? Cleaners trapped in sham contracts, earning as little as $7 an hour, with no security and no support.

As time passed, I started feeling uneasy. Just because something is legal doesn’t mean it’s right. The truth was, even when done by the book, this model didn’t align with my vision of a fair workplace. Then came a turning point. One that made me rethink everything.

The Moment We Realised It Wasn’t Right

This was an encounter I easily could not have had, as it was whilst Anne and I were taking a break. It was during this trip, late in 2019, when we were staying at a resort in Perisher that I ran into a cleaner. This cleaner looked very distraught—and to be honest, just plain lost.

Me being me, I reached out to her to see if I could help—after all, I did know a bit about cleaning by then. It was then that this cleaner let me know that she just did not know how to get the job done. After talking to her, I came to realise she was being paid as a contractor … but she had no training, no support, and was being asked to clean 30+ rooms in less than four hours.

Unfortunately, I could not help her much other than give her information, like relevant pages on Fair Work to look at, what she should be asking for to be paid, and who to ring if she needed more help.

As you may imagine, this was a confronting situation, and it left me with a lot to think about. After a day or two, I said to Anne that I think we need to change back to employees. Yes, it was not going to be an easy task, but we both agreed it was time to do the absolute right thing by our team.

Of course, we were not treating our Independent Contractors like this cleaner, but we felt we could do better. However, we found ourselves with two important questions we had to answer:

What do we tell our team of contractors?
How do we move back to employees?

Anne and I decided to be honest, let them know the plans, and over the course of 18 months—as natural progression happens and contractors move on—then we would convert those sites back to employees. Sounds simple, doesn’t it?

Now, again, that critical conversation occurred in late 2019. Who would have known back then what was to arrive in early 2020? Yep, that dreaded COVID-19 global pandemic. And with this came the need to disinfect surfaces, a need to directly train and set up cleaners—a direct rule break of the definition of an Independent Contractor.

So, what happened? To be honest, what we saw as an 18-month change to employees became a four-month turnaround. This was due to some of our team going home to escape COVID restrictions, some taking jobs that did not involve them being a front-line worker, and, to be honest, some not being able to cut it as an employee. Yep, we gave them all the option to become an employee, and I am pleased to say that some today are still happy employees with us.

Why We Will Never Look Back

Today, nearly every cleaner on our team is an employee, not a contractor. They have the security of a regular income, benefits, and fair treatment. We invest in their training, and we build relationships with them as part of our team. And the results speak for themselves. Our staff feels valued, they stick around longer, and the quality of our service is stronger for it.

Now, you may be thinking:

“Wait a minute? You just said ‘nearly’ every cleaner? Does this mean you still have Independent Contractors?”

Yes, we still have two.

These are the only Independent Contractors that pre-date 2019. Why are they still working for In-Tec? Simple. Anne and I are loyal to our team, and whilst these two contractors stuck by us, we have, in turn, stuck by them. If they continue to deliver the standard, they will have the sites they have. They cannot have any more, but the sites they had previously, they can keep cleaning.

Like I said, if the standard is there, and they comply with all the other regulations we require from them, there is no need to discontinue this partnership.

Looking back, the choice to transition to direct employment wasn’t just about compliance or ticking boxes; it was about integrity. The kind of integrity that I believe all businesses should uphold, especially in industries like ours where it’s all too easy to cut corners at the expense of workers. This is what sets us apart, and it’s a commitment I’m proud to uphold every day.

We could have continued with contractors, sticking to the status quo, and no one may have batted an eye. But that’s not the legacy I want for In-Tec. For too long, commercial cleaning has been about doing the bare minimum—getting by with minimal standards and maximum cost-cutting. I believe our clients and our cleaners deserve better.

I want In-Tec to set a new standard, to show that there’s a better way to run a business in this industry. One that respects and values its team and delivers the kind of service clients can genuinely rely on.

If you're interested in learning more on how to choose the correct commercial cleaning partner for your organisation, you can download our guide, 10 Questions to Ask Before Hiring a Commercial Cleaning Company. Or you can contact us at any time with your questions, or to start a conversation about how we may be of service to you.