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.