Category: Labour exploitation

Tackling labour exploitation – an update on Operation EMPOWER 

Ronnie Megaughin, Head of Compliance and Inspections, Security Industry Authority  

In August this year Paul Fullwood, the SIA Director of Inspections & Enforcement, published an article on our response to labour exploitation in the private security industry. This is an update on our operational response to the issue, which we are calling Operation EMPOWER.

The issues that Paul highlighted in his article are most prevalent in extended supply chains involving sub-contracting labour provision to service contracts.

EMPOWER, which has been running for about four months, combines a number of approaches. These include an intensive media campaign, primarily on social media platforms, and an operational response driven by a dedicated team of SIA Compliance and Inspections (C&I) Investigators working closely with partners in HM Revenue & Customs (HMRC) and Home Office Immigration Enforcement (HOIE).

We have raised around 150 investigation cases under the EMPOWER criteria. These relate to tax evasion through bogus self-employment, failure to pay National Insurance, breaches of National Minimum Wage legislation, and abuse of student and skilled worker visas.

Whist some cases are relatively straightforward and can result in a referral to HMRC Fraud Investigation Service, others are far more complex and will require time to work through and gather evidence. One such investigation resulted in Operation JACKFRUIT. This was a UK-wide day of action, led by SIA C&I and Criminal Enforcement investigators in partnership with HMRC and HOIE teams.

The main themes which JACKFRUIT aimed to address were NMW breaches, benefit fraud, abuse of visas, and bogus self-employment. We visited 35 separate sites, with two business inspections included in the plan. HOIE arrested one individual for visa abuse (working on a skilled worker visa in front line security). HOIE have the power to apply significant fines on the offending business in such circumstances. We and our partners are progressing other lines of investigation as a result of the information we obtained on the day.

We adapted our approach to inspections at summer festivals and events this year to include engagement with operatives to establish their employment status and who they were employed by. That work identified 283 individual cases with concerns about employment status. HMRC will follow those up with a view to addressing the companies responsible for their deployment.

We launched our social media campaign on 27 August 2024, using a newly-designed campaign identity based on our brand. Since then we’ve shared more than 50 posts across Twitter (X), LinkedIn and Facebook. We have written messaging to target four specific audiences: general licence-holders, businesses, buyers of security, and potential victims of labour exploitation. Our messages have been seen more than 100,000 times, with a good deal of positive engagement.

A significant challenge we face is the use of closed WhatsApp groups to recruit and arrange deployment of security operatives. At one time many of these groups would post hourly rates well below National Minimum Wage. However, the actions of well-intentioned members of the security industry, who sought to expose them on social media platforms, have driven their activities further underground. Many will now only offer an hourly rate over the telephone. Intelligence indicates that some groups are being operated entirely in foreign languages to further frustrate any attempts to infiltrate them.

Anecdotal evidence and feedback from all our public engagement indicates overwhelming support for our work under Operation EMPOWER. We are under no illusion that there is a quick fix. However there is no doubt that more robust contract management and greater due diligence in supply chains by the larger companies in the private security industry could have a significant positive impact.

We will continue to work under Operation EMPOWER, in partnership with all interested parties, to reduce the harm.

We’re taking a stand against labour exploitation

We’ve set up a dedicated multi-disciplinary team across the SIA, headed by Paul Fullwood, our Director of Inspections and Enforcement, to address labour exploitation under the name Operation EMPOWER. The aim of this operation is to seek to reduce labour exploitation across the UK private security industry, working in collaboration with the industry itself, key partners, and government. Our plan begins with the launch of a communications campaign to raise awareness of the signs of potential labour exploitation and encourage reporting. Paul explains more here:

We know that labour exploitation exists within the private security industry. The harm to individuals is unacceptable. The consequent injury to standards and public safety, to law-abiding businesses who are undercut by criminal enterprises, and to the reputation of the industry, demand a response. 

We’re confident that most private security suppliers meet high standards and provide fair working conditions, which contributes to public safety. However, we know from our intelligence and stakeholder engagement that the industry has concerns that some companies are undermining quality businesses through alleged poor practices. 

We’ve set up a dedicated multi-disciplinary team across the SIA, headed at director level, to address labour exploitation under the name Operation EMPOWER. This project team includes intelligence specialists and criminal investigators, as well as representatives from Individual and Business Standards, Legal, Policy, and Communications. 

The aim of this operation is to seek to reduce labour exploitation across the UK private security industry, working in collaboration with the industry itself, key partners, and government. We need the commitment and support of departments and agencies with relevant powers, such as HM Revenue and Customs and the Home Office. This is because our current powers under the Private Security Industry Act 2001 provide us with limited opportunities to tackle this issue on our own. 

People who are being exploited can be hard to reach. They may be vulnerable due to their immigration status. They may not even realise that they’re being exploited. We want security operatives to understand what labour exploitation looks like. For example, they may not be being paid the National Minimum Wage. For some individuals, particularly those who are being used by organised crime, their situation may be far worse. We need these individuals to be able to identify when they’re being exploited, and to know that they can report their situation in confidence to the SIA and other agencies. The expectation must be that action will follow. 

We are also talking to security businesses to make sure they’re aware of their responsibilities to the people they employ. We want buyers of security to be vigilant as well, as we know that labour exploitation – particularly low pay – can be a feature of sub-contracting chains. If buyers are sourcing cheap security, say for an event, they may be paying an amount that guarantees that operatives themselves are not being paid National Minimum Wage. 

A private security company supplier, which is under contract to a buyer, must make sure that their employees are paid correctly and contribute the correct amount of national insurance and tax. They must also make sure that this is being done throughout their supply chain. 

No employer is exempt from paying their workers the statutory minimum wage. Employers must pay their employees the National Minimum Wage (to apprentices or people aged under 21) or the National Living Wage (to people aged 21 or over). There are also minimum unavoidable costs for basic employment matters such as national insurance. 

This should be of special interest to legitimate security businesses, as unscrupulous operators can undercut those who treat their staff fairly and pay them properly. 

Our plan begins with a communications strategy aiming to raise awareness of the signs of potential labour exploitation, and encourage reporting, with the support of key communications partners. We’re directing people to a new guidance and reporting page on our GOV.UK site. We will follow this first phase with a programme of engagement on the actions we are collectively taking to address labour exploitation. 

In this way we are embarking on a multi-partnership operation intended to disrupt and dissuade the individuals and businesses that direct or facilitate labour exploitation. Keep an eye out for our messages, and if you come across exploitation in the private security industry – please report it.