If you are a user or provider of security guarding services, then the answer is almost certainly yes. We have discovered prolific abuse across virtually the whole of the industry. You will almost certainly be at risk without even noticing.
Can you answer YES to all of these questions?
- We have contractually excluded labour-only agreements from our security suppliers
- We have contractually excluded non-PAYE staff
- We have checked the payroll of our security suppliers
- We have inspected vetting files of all security staff
- We check that security officers from suppliers are paid the right amount
Eighteen months ago, we couldn't answer YES to these questions either. Now following our extensive investigation, we can. Here’s a summary of what we have found:
- ACS companies have an obligation (SIA rules) to let you know if they use subcontractors. There is no obligation to let you know about labour-only agreements so if you ask them. Do you subcontract – they will answer NO.
- If you ask about vetting, they will state that vetting is done by the labour provider. There will be no evidence of vetting and your cursory checks will be met with made up concerns over GDPR. We had to go to court to gain this information.
- There are additional taxation requirements on labour-only supply chains that will apply to you. If you do not apply the HMRC checks you can be held liable for non-payment of VAT, PAYE and NI for any security officer deployed if it’s not paid correctly.
We found:
- Minimum wage offences
- Incorrect classification of non-PAYE
- No payment of wages
- No BS7858 checks
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