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.

• From: Security Industry Authority
• Published: 1 July 2021
• Last updated: 11 August 2021 — See all updates

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.

The 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.

Published 1 July 2021
Last updated 11 August 2021 + show all updates

1. 11 August 2021

   Updated to remove 1 reference to self-employed staff (most security officers working in the private security industry are employees).

2. 1 July 2021

   First published.