Source: Service Management
The Inspectorate SZW states in its recently published 2020 annual report that abuses in part of the cleaning industry are persistent, “with rogue entrepreneurs often using complex constructions to (unseen) circumvent laws and regulations. Tackling such abuses requires a concentrated approach from the ‘Tackling abuses in the cleaning sector’ partnership.”
Tackling Abuses in the Cleaning Sector (AMS) is a close collaboration between the Inspectorate SZW, the Tax and Customs Administration and the UWV. Previously, until 1 June 2020, it was called the Cleaning Intervention Team.
The parties are concerned within the AMS with:
- Repressive action against cleaning companies that knowingly and systematically fail to comply with the rules (the notorious violators). The aim of this is to put them on the straight and narrow or make it impossible for them to operate (directing them to be dissolved and making a restart impossible).
- Repressive action against clients using these cleaning companies.
- Attention to the people behind the rogue ‘constructions’, the facilitators. These people ensure the continuation of unfair competition and the perpetuation of fraud and exploitation.
This approach is complemented by compliance communication to increase spontaneous compliance among cleaning companies and clients.
2020 results: seven complex studies
The AMS conducted a total of seven complex investigations in 2020, resulting in nine penalty reports. As a result of these cases, the Tax Administration may impose corrections and additional income tax and sales tax levies. In addition, seizures of vehicles, a residential property and garnishments were made. At the UWV, six employees could be found to have violated the information duty. In the hotel sector in 2020, payment per room cleaned rather than per hour still prevails.
Increased risk of illegal employment in hospitality industry
A major project of the Inspectorate SZW in 2020 involved ‘Cleaning in the Hospitality Industry’. In the part of the hospitality industry it focuses on, the Inspectorate sees that there is often 7-day-a-week work and/or a lot of undeclared work with benefits. Based on reports, the Inspectorate carries out targeted checks, including in the evening hours.
“Cleaning work in the hospitality industry often takes place out of sight and late in the evening or at night, which increases the opportunity for illegal employment. In the hotel sector in 2020, payment is still made per room cleaned rather than per hour. In the process, pay often falls below the collective wage or even the minimum wage,‘ the Inspectorate said.
Hospitality cleaners underpaid
In the ‘Cleaning in the Hospitality Industry’ project, 55 cases were completed in which 70 employers were inspected. One or more violations were found in 30 cases and a total of 39 fines were imposed.
The Inspectorate SZW found violations in a major inspection at 10 companies of the 11 major catering companies investigated. This involved 17 cleaners, three of whom were not allowed to work in the Netherlands. In addition, the Inspectorate SZW suspected that the cleaners were underpaid. “Compliance with the Working Hours Act was also at issue. For instance, cleaners allegedly worked seven days a week and actual start and end times were not kept. There were also signs of suspected benefit fraud and undeclared work. Municipality and tax authorities were informed of this.”
Pressure on major hotel chains
Besides the use of more or less repressive interventions, pressure was also put on the chains of large hotels. This not only highlighted the fact that cleaning has a certain price and that cleaning contracts that are too cheap increase the risk of underpayment, but also the Code of Responsible Market Conduct.
English (UK)