The Cost of Non-Compliance
Engaging a non-compliant security agency can expose your organization to significant legal and financial risks. If the agency fails to remit ESIC or EPF contributions, the principal employer (your company) can be held liable for recovery. If a deployed guard is involved in an incident, questions about the agency's PSARA license and training compliance will be front and center in any legal proceeding.
What to Verify Before Signing
Here is a practical compliance verification checklist for hiring managers:
- PSARA License: Request a copy and verify the license number with the state's Controlling Authority (typically the Home Department or the office of the Commissioner of Police). Ensure the license covers the specific state where guards will be deployed.
- GST Registration: Verify the agency's GST certificate. Cross-check the GSTIN on the GST portal to confirm it is active and filing returns.
- EPF and ESIC Registration: Ask for proof of registration under the Employees' Provident Fund and Employees' State Insurance acts. Randomly verify that a sample of the deployed guards are enrolled and contributions are being deposited.
- Labour License: Under the Contract Labour (Regulation and Abolition) Act, 1970, the agency must hold a valid labour license if employing 20 or more contract workers.
- Insurance Coverage: Verify the agency's public liability insurance, workers' compensation insurance, and fidelity guarantee coverage.
Ongoing Compliance Monitoring
Compliance verification should not be a one-time event. Insist on quarterly compliance reports from your agency, including proof of statutory remittances, training attendance records, and incident logs. Silbar Security provides full statutory compliance documentation to all our clients as a standard practice, not as an add-on.