New employment, Personal Service Company and compliance requirements for SIA Approved Contractors come into effect from 1 July 2026.
From 1 July 2026, the Security Industry Authority (SIA) is introducing important changes to its Approved Contractor Scheme (ACS) requirements.
The changes affect how security personnel are employed throughout the supply chain, the use of Personal Service Companies (PSCs), and how the SIA will respond to non-conformance.
The changes are intended to strengthen compliance and transparency across the private security industry, protect employment and worker rights, and help reduce labour exploitation.
What is changing?
There are three key changes for SIA Approved Contractors.
1. New employment requirements
Personnel engaged throughout the security supply chain must be directly employed or, where bought-in labour is used, at least employed for tax purposes by the relevant labour provider or entity. Personnel must also receive the appropriate employment or worker rights under UK employment law. This places greater emphasis on employment practices not only within an Approved Contractor’s own workforce, but throughout its wider labour supply chain.
2.Personal Service Companies will no longer be permitted for regulated activity
A new requirement is being introduced under Self-Assessment Workbook indicator 4.2.1.
Approved Contractors will be prohibited from using security operatives working through their own intermediaries, commonly referred to as Personal Service Companies (PSCs), to deliver regulated security activity.
The restriction applies both to operatives engaged directly and those supplied through labour providers or other entities within the wider supply chain.
3. Stronger sanctions for non-compliance
From 1 July, a single improvement need relating to self-employment and/or the use of Personal Service Companies will result in withdrawal proceedings.
This makes employment status and supply-chain compliance an increasingly important part of maintaining ACS approval.
Why is the SIA making these changes?
The changes are designed to help raise standards and maintain the integrity of the Approved Contractor Scheme.
They also support the SIA’s wider objective of reducing labour exploitation within the private security industry.
Poor employment practices, avoidance of tax and National Insurance, and failure to provide appropriate worker or employment rights can undermine both industry standards and public safety.
By strengthening the ACS requirements, the SIA aims to improve compliance, transparency and employment practices across the security supply chain.
What should Approved Contractors do?
The SIA expects Approved Contractors to meet ACS requirements at all times and has advised businesses to check their compliance with the new requirements now.
Updated guidance is being published on GOV.UK from 1 July 2026, covering areas including:
- ACS eligibility requirements
- Employment status and directors
- The 2026 Self-Assessment Workbook
- Personal Service Companies
- Employee and worker definitions
- The ACS sanctions framework
Approved Contractors should review the updated guidance carefully and ensure their own employment arrangements and wider supply chains meet the revised requirements.
What this means for the security industry?
The changes reinforce the importance of responsible employment practices within professional security provision.
For clients purchasing security services, ACS status provides an independently assessed benchmark covering areas of an Approved Contractor’s operations and management. The strengthened requirements place additional emphasis on how security personnel are engaged throughout the supply chain.
At Comprehensive Security Solutions (CSSL), we welcome measures that support high professional standards, responsible employment practices and greater transparency across the private security industry.
As an SIA Approved Contractor, we remain committed to maintaining the standards required by the Approved Contractor Scheme and keeping up to date with changes affecting our industry.
Further information
Businesses and security professionals should refer to the latest official SIA guidance for the full requirements and how they apply to their circumstances.
