Security providers across Australia are being reminded that award compliance is not just an administrative task — it’s a business-critical obligation.
A recent update from the Victorian Labour Hire Authority (LHA) has highlighted that some security providers in the security industry are incorrectly applying the Registered and Licensed Clubs Award 2020 instead of the Security Services Industry Award 2020 (SSIA) for security officers working at club venues. According to the LHA, this can result in significant underpayments and may expose providers to licensing action.
For security businesses already managing tight margins, complex rosters, and changing client demands, this serves as an important reminder: getting award interpretation wrong can have serious financial and operational consequences.
What’s happening?
The LHA has identified cases where crowd controllers supplied through labour hire arrangements were being paid under the Registered and Licensed Clubs Award 2020 (RLCA) because they were working at licensed club venues. However, the authority clarified that labour hire security workers provided by a security company must instead be paid under the Security Services Industry Award 2020.
The distinction matters because the applicable award directly impacts pay rates, allowances, overtime, penalties, and superannuation obligations. According to the LHA, some workers may have been underpaid by as much as $9 per hour due to incorrect award application.
Why this matters for security providers
Award interpretation in the security industry can be particularly complex because workers are often deployed across multiple client sites and industries, including:
- Clubs and hospitality venues
- Construction sites
- Retail environments
- Corporate buildings
- Events and entertainment venues
It can be tempting to assume the host venue’s award applies to all workers on-site. However, as the LHA has reinforced, the correct award depends on the employment arrangement and the nature of the work being performed.
For security providers, this creates several risks:
- Underpayment claims and backpay liabilities
- Superannuation underpayments
- Payroll remediation costs
- Reputational damage
- Licensing scrutiny or enforcement action
- Difficulty remaining competitive while maintaining compliance
Importantly, the LHA also noted that incorrect award application can create an uneven playing field, disadvantaging businesses that are doing the right thing and paying workers correctly.
Compliance is becoming more visible
Across Australia, regulators are placing increasing focus on wage compliance, labour hire obligations, and payroll accuracy.
For security businesses, this means payroll processes can no longer rely on manual interpretation, spreadsheets, or outdated award assumptions. As award rules become more nuanced and enforcement activity increases, businesses need systems and processes that support accuracy and consistency at scale.
A proactive approach is the best protection
The good news is that businesses do not need to navigate these challenges alone.
Reviewing award coverage, employee classifications, and payroll configurations now can help providers identify potential issues before they become larger compliance problems.
Key areas security providers should regularly review include:
- Award interpretation across different client environments
- Employee classifications and pay levels
- Penalty and overtime calculations
- Superannuation compliance
- Labour hire obligations
- Payroll recordkeeping and audit trails
Having the right technology in place can also make a significant difference.
How Cerely helps security businesses stay compliant
At Cerely, we understand the operational complexity of the security industry and the pressure providers face to balance compliance, efficiency, and profitability.
Cerely’s workforce management and payroll solutions help security businesses streamline payroll processes, improve visibility across rosters and pay conditions, and reduce the risk of manual payroll errors.
By centralising workforce data and simplifying payroll workflows, security providers can spend less time worrying about compliance complexity and more time focusing on growing their business and supporting their teams.
As regulatory scrutiny continues to increase, having reliable systems and clear processes in place is becoming essential — not optional.If your business wants greater confidence in payroll accuracy and workforce compliance, learn more about how Cerely’s solutions for the security industry can help by booking a demo.
