Due diligence at any stage of a business relationship is important, but never more so that with the companies and organisations used for labour.
Within the security industry, labour-only contracts and rogue labour providers are a significant danger. These “sub-to-sub” security contracts pass the outsourcing of work further and further away from the original client to exploit cheaper labour and larger profits throughout a complex supply chain. Due to a loophole in the ASC definition of labour providers and SIA’s exclusion of labour only contracts in their audits, gaps are left open for the supply chain and the statutory rights of security officers to be abused.
Not only does this lack integrity and damages the security industry, but it puts businesses at huge risk. Typically labour only companies avoid SIA inspection on BS7858 vetting and taxation, this can cause you a whole host of problems:
- No control over who is responsible for the protection your business
- No control over who has access to your premises
- No control over the quality of the supply chain
- Lower standard of security officers
- If not SIA accredited, extra time will have to be spent checking the validity of any other relevant training
- Difficulty obtaining or no evidence of training and qualifications
Increased likelihood of Modern Slavery, human trafficking and wages paid under real living wage
- Hold you liable by HMRC for unpaid tax, PAYE, National Insurance & VAT even if the problems are deeper rooted in the supply chain than your immediate supplier
- Could lead to you facing civil penalties or criminal prosecution
- Could leave you vulnerable to criminals, fraud, illegal workers and terrorists working on-site
- Encourages other criminal activity to take place within the supply chain or your own premises due to lack of accountability and traceability
Ultimately, subcontracting with subcontractors threatens tremendous damage to your company reputation.
You can find more information about our own internal recruitment process on our ‘Recruitment’ page.