Guidance

Know the difference between sub-contracting and use of labour

Sub-contracting and use of labour are common practices in private security. Know the difference and understand who is responsible for checking SIA licences.

What is the difference between sub-contracting and labour provision?

Sub-contracting is where:

  • one business is responsible for delivering the customer contract that was given to them by another business, who initially held the contract with the customer

Labour provision is where:

  • one business uses the labour provided to them from another business to supplement their staff numbers and enable them to deliver the contract for security

You should:

  • be open with your client about which approach you are using
  • ensure that checks are in place to guarantee that all security operatives deployed are correctly licensed

If you are an SIA approved contractor

You may only sub-contract to other approved contractors, unless we have given you permission to do otherwise.

Who is responsible for checking that everyone is correctly licensed?

If you are using a sub-contractor to deliver a customer contract that was given to you by another party:

  • the sub-contractor is responsible for screening and vetting the operatives they use
  • you should have a clear plan for who will be managing the sub-contracted staff during the shift(s)

If you are using labour provided to you from another company to fulfil your contract for security, you must:

  • ensure that the operatives have been screened and vetted, or carry out your own checks
  • agree who will manage the staff deployed

You may be liable if unlicensed staff, or staff with no right to work, are discovered working at the contracted premises.

»Ê¹ÚÌåÓýapp terms and conditions of a contract or agreement should clearly state the roles, responsibilities and liabilities between your company, any sub-contractors or labour providers, and the end client.

Labour supplied by a third party

If you use labour supplied by a third party, then you should consider how to safeguard your business from financial and reputational risk. Read the advice from HMRC on due diligence.

Updates to this page

Published 1 July 2021
Last updated 11 August 2021 show all updates
  1. Updated to remove 1 reference to self-employed staff (most security officers working in the private security industry are employees).

  2. First published.

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