Guidance

Guidance on the use of licence dispensation

Updated 8 June 2021

1. Introduction

As an approved contractor, you can deploy security operatives while they are still going through the licence application process. This is known as ‘licence dispensation’.

Your permission to use licence dispensation is separate to your ACS approval, but when we grant your ACS approval we assume that you will want to take advantage of this benefit. We therefore grant you permission to use licence dispensation by default. You must tell us in writing if you would prefer not to use this facility.

We can withdraw our permission to use licence dispensation if you do not follow the rules set out in this guidance. We can also:

• withdraw your ACS approval
• refuse any future applications for ACS approval you may make

You may only use licence dispensation for the licensable activities (sectors) we have approved you for.

Our rules usually limit you to deploying a maximum of 15% of licensable staff using licence dispensation. You can ask us to increase this limit in exceptional circumstances.

2. Using licence dispensation

You can use licence dispensation to deploy a member of staff if all the following conditions apply:

• you are authorised to use licence dispensation
• they have applied for the necessary SIA licence, and we have accepted their licence application (this usually means that their application is at ‘checks in progress’)
• the licence they have applied for is for a licensable activity we have approved you for
• we did not refuse their previous application for a licence
• we did not revoke or suspend their most recent previous licence

If any of these conditions are not met:

• you will be committing a criminal offence by deploying them without a licence
• they will be committing a criminal offence by working without a licence

2.1 Confirming ‘checks in progress’

Unless we have told you otherwise, you must only issue an LDN to someone once their application has moved to the ‘checks in progress’ stage.

If you are using our Licence Assist or Licence Management services we will tell you when this happens.

If you are not using our Licence Assist or Licence Management services, you must ask the applicant to prove that their application is at ‘checks in progress’. You can accept either of the following as proof:

• a copy of the message we send to the applicant to confirm their application has moved to ‘checks in progress’ (this message has the title “We are processing your licence application”, and is sent as an email, as a message in their online account and occasionally as a letter)
• a screenshot of the ‘My applications’ page of their SIA online account, showing the application as being at ‘checks in progress’

You must keep this evidence on file. Your assessor will ask to see it.

2.2 Suspended or revoked licences

You must not issue an LDN to someone if we revoked or suspended their most recent previous licence, unless we revoked the licence because they did not have the right to work in the UK.

If we revoked their licence because they did not have the right to work in the UK, you may issue them with an LDN if all the following statements are true:

• you have confirmed that we revoked their licence because they did not have the right to work in the UK (correspondence from us to the individual will confirm this)
• you have asked for permission to deploy them under an LDN (you should do this by submitting a service request containing the phrase “right to work check” and the details of the person in question)
• we have agreed that you can deploy that person under an LDN
• all other conditions for use of an LDN are met

3. Issuing personal licence dispensation notices (LDNs)

You must issue a personal LDN to each member of staff working under licence dispensation.

The personal LDN must follow our template and should be issued on your company’s branded stationery. It must, as a minimum, show all the following:

• the name and address of your company
• the name, signature and telephone number of the person issuing the LDN
• the name, signature and contact details of the security operative to whom the LDN has been issued
• the operative’s SIA licence application number
• the activities for which the LDN applies (such as ‘door supervision’ or ‘security guarding’)
• the date the LDN expires

You may issue someone with 1 LDN without contacting us. After that you must ask us for permission to issue any further LDNs to that person.

You must not issue someone with a licence dispensation notice if they will be in sole charge of children or vulnerable adults

4. Recording your use of licence dispensation

You must:

• keep records of all members of staff given a personal LDN (these must include the date each LDN was issued and the date it expired)
• keep these records for 12 months following the expiry date of the LDN
• make these available to us and/or your ACS assessor on request

5. Refused, withdrawn or cancelled applications

You must withdraw the person from licensable activity if:

• we refuse or withdraw their licence application
• they or you cancel their licence application

6. Operatives working under licence dispensation

Staff working under licence dispensation should carry on their person:

• the personal licence dispensation notice you gave them
• their company ID card

They must produce these documents if asked to do so by an SIA investigator or one of our enforcement partners (for example, a police officer or a local authority licensing officer).

Staff deployed with an LDN should display an ACS lapel pin when working. The pin shows that they are working for an approved contractor and are not working unlawfully without a licence.

Exceptions to the requirement are:

• if local health and safety rules prohibit the wearing of jewellery/pins
• if a company identity card is on display that includes the ACS accreditation mark
• in cases where the person needs to remain anonymous (such as for a close protection operative or a store detective)
• if we have agreed that they do not need to wear an ACS lapel pin

You can order more ACS lapel pins using the additional goods order form available from the ‘Ordering ACS good and materials’ page of our website.

7. Responsible person

You must ensure that there is at least 1 person within the business who understands how to issue licence dispensation notices (LDNs). That person must refresh their knowledge and understanding every 3 years. If they leave, or change roles, then another person must take on responsibility for ensuring that you issue LDNs correctly.

8. Licence dispensation and licensed premises

You should check the requirements of the premises licence before you deploy staff on an LDN.

The Licensing Act 2003 allows local authorities to specify the use of SIA licensed door supervisors in their conditions for a premises licence. The original wording of the Act unintentionally prevented the use of licence dispensation where they imposed such a condition.

The Violent Crime Reduction Act 2006 amended the Licensing Act and corrected this situation. However, the amendment does not apply to premises licences issued before November 2006 (when the amendment took effect).

The premises licence holder may apply to their local authority to have their licence varied if they wish to do so.

9. LDNs issued by other approved contractors

Where a member of staff has transferred from another approved contractor and that company deployed them under an LDN, the old LDN is no longer valid.

10. Issuing a second or subsequent LDN

You may issue someone with 1 LDN without contacting us. After that you must ask us for permission to issue any further LDNs to that person. You should do this 1 week before their first LDN expires. Before you do, you should check our register of licence holders to confirm that we have not already granted them a licence.

To ask for permission to issue a second or subsequent LDN:

1. Fill in the ‘LDN check form’ - available from the ‘Licence Dispensation Notices (LDNs): guidance and forms’ page of our website.
2. Log into your SIA business account and click on the ‘Contact the SIA’ tab.
3. Select “I want to make a business enquiry” as your reason for contact
4. Use the ‘Your query/request’ box to tell us that you are requesting a 2nd LDN
5. Upload your completed LDN check form using the ‘Browse & upload’ button
6. Submit your request.

We will check what is happening with that person’s licence application and will then respond to your message, approving or refusing your request.

Some examples of when we might refuse your request are:

• we intend to refuse the person’s application, but that decision is yet to take effect (they are at ‘minded to refuse’)
• the person is due to go to trial (in which case, we cannot proceed with their application until we know the outcome of the trial)
• we have withdrawn the person’s application

If you do not receive a response from us before the existing LDN expires, you may go ahead and issue a further LDN. You must withdraw this person from licensable activity if we then refuse your request.

11. Lifting the 15% limit on licence dispensation

Our rules usually limit you to deploying a maximum of 15% of licensable staff using licence dispensation. You can ask us to increase this limit in exceptional circumstances. Some examples of what we mean by “exceptional circumstances” are:

• you get new staff through TUPE who were previously ‘in-house’ and unlicensed
• you win a new contract at short notice and need to recruit large numbers of new staff to fulfil that contract

You will need to fill in and send us a request form (available from the ‘Licence Dispensation Notices (LDNs): guidance and forms’ page of our website). The form asks you for the information we will need before we can say yes or no. This includes:

• the reason(s) you need to deploy more than 15% of your licensable staff using licence dispensation
• your plan for bringing the situation back under control (this should include projected timings)

We will assess each request on a case-by-case basis, taking your circumstances into account. We will also consider:

• your past conduct as an approved contractor
• whether you could have avoided the exceptional circumstances you are facing
• any actions you have taken to minimise your need for increased licence dispensation

We will confirm our decision to you in writing.

If we agree to your request, we will:

• specify an expiry date for your increased use of licence dispensation
• list any conditions we have attached - for example, we might limit the increase to certain licensable activities or to specific contracts

If we refuse your request, we will tell you why unless legal obligations or confidentiality agreements prevent us from doing so.

[Reference: ACS/21-22/C-028]