The security industry is generally made up of security businesses that provide contracted security services to other businesses or individuals.
The Security Award has provisions to cover the situation when a security contract changes from one security contractor (the outgoing contractor) to another (the incoming contractor). The outgoing contractor would be the one whose contract has ended, and the incoming contractor is the new employer taking over the outgoing contractor’s business or their security services contract.
Example
S.D. Security Services has a contract to provide night time patrol of a business complex. When the contract term expires, the businesses that hired S.D. Security Services decide that they need increased services, which S.D. Security Services cannot provide. So, they enter into a new contract with Country Security Contractors.
S. D. Security Services is the outgoing contractor and Country Security Contractors is the incoming contractor.
If an employee loses their job becuase of a change of contract, then they may be entitled to receive redundancy pay. For more information about redundancy, visit the Redundancy page.
If an employee agrees to an acceptable position with the incoming contractor, and the outgoing contractor has paid the employee all of their outstanding entitlements (including any annual leave, long service leave, notice of termination and wages), then the employee is not entitled to receive redundancy pay. This is also the case if the employee continues to be employed by the outgoing contractor (for example if they started working on a different contract).
Example
Ben has been working for S.D. Security Services for 3 years. During this time, he has been working as a security guard conducting the night time patrol of a business complex. When the contract term expires and is not extended, Ben is offered a job with the incoming contractor - Country Security Contractors.
The job that Ben is offered is the same work, hours and pay as his previous position, and is located in the same place so it does not affect the amount of time he has to travel to work.
S.D. Security Services give Ben notice of termination and pay out his annual leave, but he is not entitled to redundancy pay.
Important: If you are buying or selling your business or if you have taken over a part of another business through an outsourcing arrangement, then you should find out whether a transfer of business has occurred as this could affect your minimum obligations. This can be a complex issue and you may wish to seek professional advice or help from your employer association.
Consultation regarding change of contract
If you have made a decision to give up a security contract, or a decision is made by your client that is likely to bring about a change of contract, you must:
- notify your employees 28 days (or as soon as possible) before an existing security contract is due to expire, or when you have been notified that the contract has been terminated
- notify your employees of the changes in writing, including suitable options (if any) of other employment
- notify your employees if they have been offered suitable employment, identifying the site, the hours of work and the rates of pay that they will be entitled to.
If your employees have not been offered suitable alternative employment (further information below), they must be notified in writing and the notice must contain details of their entitlements (such as annual leave, long service leave and redundancy) and a ‘statement of service’ or letter specifying:
- the amount of time the employee worked for your business
- the hours that they worked
- their classification under the Security Award, and
- the shift configuration - i.e. night shift or day shift.
Notice of termination
The requirement to notify your employees that a contract they are working on is due to expire or has been terminated is not considered notice of termination. If your employees are being made redundant as a result of the contract ending, you must also provide them with the correct amount of notice of termination, which is dependent on their length of service with your business. If you don’t, you may need to pay them instead of giving them notice.
For more information about notice of termination visit Termination of employment .
What if I find another job for my employee?
An employee is not redundant if you can find acceptable alternative employment for them in your business on another site or sites. They are also not redundant if they are employed by the incoming contractor in an acceptable position.
If your employee is employed by the incoming contractor, then you must pay them out all of their entitlements, such as wages and annual leave.
Best Practice Tip
Whether a job is ‘suitable alternative employment’ depends on a number of factors:
- Pay - is the amount the employee will be paid for the new job similar or the same as the redundant position?
- Hours of work - is there a change of starting and finishing times, a change from shiftwork to day work (or vice-versa), or a change of the days of work? You should consider any other responsibilities the employee has such as family or carer responsibilities.
- Employment category - is the new position the same category as the redundant position (casual, part-time or full-time)?
- Seniority or status - is the new position the same level as the redundant position? For example, the offer of a non-managerial role to a manager may not be suitable.
- Skills & qualifications - does the employee have the required skills for the new position? If not, you may have to provide the necessary training to gain the skills or qualification.
- Location - if there is a relocation of work, make sure you give thought to the amount of notice you provide the employee, transport facilities and the amount of additional time that they will have to travel to the new location.
- Fringe benefits - what is the overall impact of the new position compared to the redundant position, including the provision of transport or a vehicle, penalty or shift rates, or regular overtime payments?
- Job security - for example, offering casual employment to a full-time ongoing employee lessens their job security.