Compliance in Security: Meeting Minimum Standards and Planning Beyond Them

In today’s security environment, compliance is not simply a legal obligation; it is the basis on which trust is established and maintained. Every organisation that engages a security provider should understand the minimum standards that apply, and many will choose to consider additional governance practices that reduce risk and protect reputation.

Why compliance matters

Security providers operate in sensitive environments and interact with people, property and information every day. Because of this, they are expected to meet clearly defined legal and ethical requirements. Understanding those requirements helps clients make informed decisions and set expectations that support safe, reliable and transparent service delivery.

The minimum standards for security providers

Security companies in Australia are expected to comply with requirements set out by legislation and relevant authorities. At a high level, these include the following areas.

1. Security licensing

Legislation: Security Industry Acts vary by state and territory (for example, the Security Industry Act 1997 (NSW) and the Private Security Act 2004 (VIC)).

What is required: Individual personnel must hold valid, current licences for the roles they perform and, in the jurisdictions, where they work. Depending on local rules, companies may also need an organisational licence.

Why this matters: Licensing confirms that guards have been vetted, trained and authorised, and that businesses are operating within the rules set by the regulator.

2. Employment and workplace relations

Legislation: The Fair Work Act 2009 (Cth) and the Security Services Industry Award 2020.

What is required: Providers must comply with minimum wage and rostering requirets, honour righttowork verification, and follow fair employment practices.ments, honour righttowork verification, and follow fair employment practices.

Why this matters: Sound employment practices reduce the risk of exploitation and support a stable, qualified workforce on client sites.

3. Workplace health and safety (WHS/OHS)

Legislation: The Work Health and Safety Act 2011 (Cth) and state or territory equivalents.

What is required: Documented safety systems, risk assessments, appropriate induction and training, and prompt incident reporting.

Why this matters: Effective WHS reduces the likelihood of injury and helps all parties meet their legal obligations.

4. Modern slavery and ethical sourcing

Legislation: The Modern Slavery Act 2018 (Cth).

What is required: Entities that meet the reporting threshold must publish annual Modern Slavery Statements and take practical steps to identify and mitigate risks within their supply chains.

Why this matters: Ethical sourcing and transparent reporting demonstrate respect for human rights and support responsible procurement.

5. Financial and operational audits

What is required: Internal reviews and, where appropriate, external audits that cover payroll, rostering and contractor arrangements.

Why this matters: Regular checks support accuracy, transparency and adherence to legal obligations.

6. Policies and procedures

What is required: Accessible policies covering antibribery and fraud prevention, whistleblowing, equal opportunity, complaints handling and privacy.

Why this matters: Clear policies set expectations for conduct and provide channels for raising and addressing concerns.

Why these standards matter for clients

Meeting these standards is about risk management as much as it is about legal compliance. When a provider falls short, the effects can be significant.

Regulatory investigations and penalties.

Investigations may be initiated by different bodies depending on the type of issue:

• The Fair Work Ombudsman (FWO) may investigate wage and employment matters.
• State and territory police and licensing authorities can take action where security licensing laws are breached.
• The Australian Competition and Consumer Commission (ACCC) may investigate misleading or deceptive conduct.
• The Office of the Australian Information Commissioner (OAIC) has responsibility for privacy and data breaches.
• AUSTRAC oversees compliance with antimoneylaundering obligations. Penalties vary according to the law and the circumstances. As a guide, serious contraventions under the Fair Work Act can exceed AUD $630,000 per contravention for corporations, and significant or repeated privacy breaches can attract penalties of up to AUD $50 million under recent reforms. Licensing breaches may lead to suspension or cancellation of licences as well as monetary penalties set out in state legislation.

Operational disruption.

Noncompliance can result in the suspension of licences that are needed to provide services, termination of contracts, exclusion from tenders, and pauses in service while gaps are rectified. Organisations may also need to divert internal resources to audits, legal processes and remediation, which can disrupt day-to-day operations.

Reputational impact.

Compliance failures can attract negative media attention and scrutiny from stakeholders. This can erode confidence among customers, investors and communities, and may take significant time and effort to rebuild.

Loss of stakeholder confidence.

Boards, shareholders and customers may seek assurance that governance and oversight are effective. Restoring trust generally requires clear evidence that issues have been addressed and controls are working as intended.

Planning beyond the minimum: Wilson Security’s approach

In addition to the baseline requirements above, Wilson Security adopts governance practices designed to support reliability and transparency. These practices include:

• Independent oversight of compliance and risk at senior levels, providing clear accountability for these functions.
• Dedicated teams for compliance, safety and ethical sourcing, with responsibilities that are distinct from daytoday operations.
• Routine external reviews and certifications that help validate processes and controls.
• Constructive engagement with regulators and industry bodies to monitor changes and align with emerging good practice.

A practical next step

If you are reviewing your security arrangements against the minimum standards or exploring governance steps that go beyond them, contact Wilson Security. We can discuss the legislation that applies to your sites, the operational context in your jurisdictions, and practical measures that help protect people, assets and reputation.

Information provided in this article reflects current Australian legislation and recognised industry practices.