Protecting the assets of individuals and corporations can be a very fulfilling career to those who are willing to overcome all the legal hurdles that are involved in becoming a security contractor. Becoming a contractor in any industry is an arduous task; the journey involves crossing over a variety of legal sectors — this can include the fulfilment of specific government regulations in addition to complying with workplace negligence laws. For contractor agreements, we provide easy to use and customisable contractor agreements that can be tailored to the needs of your business.
This step by step guide will help you venture across these specific avenues and successfully establish your sole trade as a security contractor.
For more business ideas, be sure to check out our comprehensive online list.
1. Background Research
It is crucial that your first step in the road to becoming a security contractor involves researching and analysing the current security market. In this, you can possibly find a niche that you or your business can fill. This will affect the services that you will provide and will further affect the licenses you must attain.
An effective business plan is essential in organising how your contracting roles will contribute to the current security market.
2. Getting Experience
Whether you are a sole-trader or starting a business, you must have the relevant experience and qualifications. A bachelor’s degree in a security subject is highly recommended. In addition, practical experience is recommended in businesses, law enforcement at state or local level or private enterprises. Overall, such qualifications usually require the completion of a police, peace officer or public safety academy.
2. Fulfilling contracting documents
Before qualifying as a security contractor, you must recognise the characteristic that encapsulate the contractor role. LawPath provides a step by step guide on how to hire a contractor.
In the case where you are wishing to start a business in security contracting creating a business plan, can help you identify the common issues that contractors face. In addition, you must work out a price for your services. “Selling, manufacturing and sourcing products”
Once you are confident that you would like to fulfill the role of a contractor (besides that of an employee), you will need to fill out the relevant registrations and have in place the right documentation. As a contractor, you must attain a Tax File Number (TFN) and an Australian Business Number (ABN).
You will also need to read into Personal Services income and check the PSI rules to determine whether they apply to you. In addition, lodging Pay as you go (PAYG) instalments for tax purposes is also essential; for your future hirer’s, you may wish to enter into a voluntary agreement so they may withhold tax for you.
3. Obtaining a Master Licence
A Master Licence allows security personnel to carry out the relevant tasks they are contracted to perform. Individuals and corporations can apply for a license, however, separate business entities cannot e.g trusts, associations and partnerships. If you are in a partnership, one of the partners must apply for the Master Licence; other partners are then regarded as close associates. After recognising this, you must look into the Master Licence categories that take into account your type of employment e.g self-employed or running a business with employees. You must then acquire a Class 1 or 2 clients for either yourself or your employees.
This licence must be renewed every so often as stated in the licence itself. Visit the NSW Police website to renew this licence online.
Both the Master License categories and Classes can be found on the ASIAL website. For relevant licence forms, visit the NSW Police online security license applications page.
Note: If you are self-employed, you must own both a Master Licence AND the relevant individual licence.
4. Successfully completing training requirements
In continuation, it is important that either you or your employees meet the competency requirements set out by the relevant licenses on the NSW Police website.
It is critical that the training either you or your employees receive come from a Registered Training Organisation (RTO). Approved SLED training courses include Vigil Training College, Allies Security, St Moses Security and Skillnet Australia. More information about SLED training courses can be found SLED Advisory Council Information Sheet.
5. Having the right legal documentation
As a contractor, you will be entering into contracts with your hirer and thus will need to obtain the right legal documentation. Establishing a contractor agreement is essential in outlining your interests, assets and liability before entering into a working relationship with a client. This also accounts for the protection of your intellectual property as well as your WHS policy.
More importantly, you must understand the risks surrounding vicarious liability if you are managing employees. Standard operating procedures can assist in remedying possible workplace negligence. In addition, obtaining public liability insurance is important for compensatory purposes.
As noted above, the hiring of a skilled lawyer can ease burden of creating contracts to comfortably suit the relationship between your hirers and/or your employees.
If you would like to look into such documents yourself, visit the LawPath website and see the range of employment documents that we offer.
We can provide sample legal documentation here: individual contractor agreement , company contractor agreement , sub-contractor agreement.
A journey’s end
At this stage, you would have filled out the legal documents to successful start your sole-trade as a security contractor in addition to obtaining the necessary knowledge to properly understand and protect your work.
For any other legal documentation you may require concerning general employment, visit LawPaths legal documents page.
Don’t know where to start? Contact a LawPath consultant on 1800 529 728 to learn more about becoming a contractor, customising legal documents and obtaining a fixed-fee quote from Australia’s largest legal marketplace.
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