ABUNDANT CLARITY ON CENTRAL’S REGULATION RELATING TO PRIVATE SECURITY AGENCIES ACT ESTABLISHED IN 2005 AND ITS JOURNEY DOWN THE YEARS !!!!
Karma Management Global Consulting Solutions Pvt. Ltd. One of the top 5 labour law consulting firms in the country, has recently hit upon yet another significant milestone in the journey of tying up SUNDEEP PURI ASSOCIATES AND ADVOCATE, where both these Firms have Formally joined hands together to collaborate and create a bigger alliance by upscaling its business on pan India basis and Internationally to give greater reach of its Services together to its hundreds of clients all over.
Sundeep Puri & Associates (SD Puri& Co.) with 55+ years of existence and helmed by Adv Sundeep Puri & Adv Ravi Paranjpe is one of the largest retainer firms in India specializing in “Employment Laws” advising the Corporate Sector. The Firm boasts of some clients being associated for the last 55+ years and the majority for the last 30-40 years. They have extensive experience in counseling Foreign MNCs & Indian MNC Clients having multi-locational Factories &/or offices Pan-India on a daily basis on a wide range of “Employment & Labour” issues, keeping in view the cultural diversity of the workforce such as Acquisitions, Mergers, Consolidations, Reductions in the workforce, Maintaining union-free environment by not undermining the principles of collective bargaining & also preserving operational flexibility in unionized settings, providing tailor-made models for conflict-free, productivity conducive Industrial Environment, as also in respect to Applicability of the various labour laws. They believe in solutions-oriented Practical Advice backed by Law.
On the other hand, Karma Management Global Consulting Solutions Pvt. Ltd. since 2004 is backed by 25 years of prior experience since 1979 , operating on an India basis and Internationally in the Americas and EMEA, helmed by Pratik Vaidya, is a leading giant in payroll management, compliance and governance, human resource services, professional Employment staffing, and onboarding, recruitment and talent acquisition, advisory and consultations thereby offering a plethora of services with quick turn-around solutions including in-house flagship AI/ML based tech solutions so as to help organizations of different types and stature to perform better in Human Resource ensuring Risk Management, Compliance and Governance across Environmental, Social and Corporate laws and grow bigger.
So in this regard, besides the business profile of Karma relating to labour laws, it will now focus whole time also on legal and para legal issues and matters with the collaboration of Sundeep Puri & Associates who are already into legal matters such as disputes, litigation, and court cases.
WHAT IS THIS “Private Security Agencies (Regulation) Act, 2005” ALL ABOUT?
This will give the readers enough clarity on the difference between several snooping, guarding, and checking agencies in India and what they do.
Modern Employee Background Screening Agencies
There are end-to-end Background Verification Companies in India that specializes in establishing trust in an individual or company through rigorous and automated background check processes in the shortest possible time using strict data security protocols.
These employee background verification companies in India aim to prevent easily avoidable fraud for businesses and also for the most vulnerable sections of society. Background verification has been developed for fraud prevention where checks are made to see whether the employees have been engaged in any kind of falsification or criminal acts.
Role of Private Detective Agencies
There are also agencies in the professional field of investigation and detective services that carry out Professional, quality-conscious and dependable investigations in India. They work with modern technology consisting of GPS tracking systems, hidden powerful cameras for sting operations, cyber software, etc as all of this aid them in their work.
Their fieldwork mostly contains surveillance and very minute observations are made followed by a concise, cogent, clear, unambiguous, and detailed report that is capable of withstanding stormy tests.
Intelligence Agencies in India
An intelligence agency is vital for national security and protects the country from internal and external threats.
Some of the intelligence agencies in India are the National Investigation Agency (NIA) ; Wildlife Crime Control Bureau (WCCB) ; National Technical Research Organisation (NTRO); Serious Fraud Investigation Office (SFIO); Defence Intelligence Agency (DIA); National Crime Record Bureau (NCRB); Narcotics Control Bureau (NCB); Research & Analysis Wing (R&AW); Central Board of Indirect Taxes & Customs (CBIC); Central Bureau Of Investigation (CBI) ; Intelligence Bureau (IB)
Security companies in India
The Security companies in India are likely to grow by the US $9.09 billion with a 15% of CAGR from 2020 to 2024. Moreover, the Indian economic development is expected to uplift the market growth.
Due to Covid-19, most of the business was impacted negatively, but the security companies in India are envisioned to have neutral growth during the forecast period.
The Indian security services market by “end-user” is segregated as Commercial buildings, Residential buildings, and Industrial buildings.
As per studies, smart buildings are one of the reasons to navigate the security services market in India’s growth for the next few years.
Currently, the private security services sector has a manpower of 7 million security guards including both, men and women to provide private security. Besides this, the cash logistics industry employs around 50,000 workers to approx. 1 lakh ATMs pan-India for cash replenishment services. (Source – IBEF)
There are 6000 security companies in India and 140000 security companies worldwide.
It was in this context that the Government framed the awaited THE PRIVATE SECURITY AGENCIES (REGULATION) ACT, 2005 and briefly what it entails, is enumerated below :
Persons or Private Security Agency not to engage or provide private security guard without a license.—No person shall carry on or commence the business of a private security agency unless he holds a license issued under this Act
Eligibility for a license.—An application for the issue of a license under this Act shall only be considered by a person after due verification of his antecedents.
Persons are not eligible for licenses.—(1) A person shall not be considered for issue of a license under this Act if he has been— (a) convicted of an offense in connection with the promotion, formation, or management of a company (any fraud or misfeasance committed by him in relation to the company), including an undischarged insolvent; or (b) convicted by a competent court for an offense, the prescribed punishment for which is imprisonment of not less than two years; or (c) keeping links with any organization or association which is banned under any law on account of their activities which pose threat to national security or public order or there is information about such a person indulging in activities which are prejudicial to national security or public order; or (d) dismissed or removed from Government service on grounds of misconduct or moral turpitude.
A company, firm, or association of persons shall not be considered for the issue of a license under this Act, if, it is not registered in India, or having a proprietor or a majority shareholder, partner or director, who is not a citizen of India.
Application for grant of license.—(1) An application for grant of license to a private security agency shall be made to the Controlling Authority in such form as may be prescribed
A license granted under this section— (a) shall be valid for a period of five years unless the same is canceled under sub-section (1) of section 13; (b) may be renewed from time to time after the expiry of five years, for a further period of five years on payment of such fee as may be prescribed;
Eligibility to be a private security guard.—(1) A private security agency shall not employ or engage any person as a private security guard unless he— (a) is a citizen of India or a citizen of such other country as the Central Government may, by notification in the Official Gazette, specify; (b) has completed eighteen years of age but has not attained the age of sixty-five years; (c) satisfies the agency about his character and antecedents in such manner as may be prescribed; (d) has completed the prescribed security training successfully; (e) fulfills such physical standards as may be prescribed; and (f) satisfies such other conditions as may be prescribed.
Issue of photo identity card.—(1) Every private security guard shall be issued a photo identity card, by the private security agency employing or engaging the guard. (2) The photo identity card under sub-section (1) shall be issued in such form as may be prescribed. (3) Every private security guard or supervisor shall carry on his person the photo identity card issued under sub-section (1) and shall produce it on demand for inspection by the Controlling Authority or any other officer authorized by it on this behalf.
The private security agencies, security companies or organizations who seek licenses under the Act are required to follow various labor legislations, which ensures that the rights of security guards are protected8. The labor laws that need to be complied with are as follows:
The Payment of Wages Act, 1936
The Industrial Disputes Act, 1947
The Minimum Wages Act, 1948
The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
The Payment of Bonus Act, 1965
The Contract Labour (Regulation and Abolition) Act, 1970
The Payment of Gratuity Act, 1972
The Equal Remuneration Act, 1976
The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service)
The security agencies shall maintain a register(s) containing the following information –
name and addresses of the persons managing the private security agency;
name, addresses, photographs, and salaries of the security staff working in the agency; and
name and addresses of the persons or companies to whom the agency provides security services
Section 24 in The Private Security Agencies (Regulation) Act, 2005 and what powers does it give the Central Government over the State Government :
Central Government Act – Section 24 in The Private Security Agencies (Regulation) Act, 2005
- Framing of model rules for adoption by States.—The Central Government may, frame model rules in respect of all or any of the matters with respect to which the State Government may make rules under this Act, and where any such model rules have been framed the State Government shall, while making any rules in respect of that matter under section 25, so far as is practicable, conform to such model rules.
G.S.R. 776(E).—In exercise of the powers conferred by section 24 of the Private Security Agencies (Regulation) Act, 2005 (29 of 2005) and in supersession of the Private Security Agencies Central Model Rules, 2006, except as respects things done or omitted to be done before such supersession, the Central Government hereby makes the following model rules, namely:- 1. Short title and commencement.— (1) These rules may be called the Private Security Agencies Central Model Rules, 2020. (2) They shall come into force on the date of their publication in the Official Gazette.
New rules for Pvt security agencies, replacing the old rules to be adopted by different States
Panaji: The state cabinet on Wednesday approved the Goa Private Security Agencies (Regulation) Rules, 2022. These rules have been framed in consonance with the Private Security Agencies Central Model Rules, 2020. There are around 47 private security agencies operating in the state and the new rules will help regulate private security agencies in the State.
The proposed Goa Private Security Agencies (Regulation) Rules 2022, elaborate the entire procedure of applying for Private Security Agency licence and regulating the registered agencies. The procedure for applying for a new licence/renewal of an existing licence is processed online through the PSARA portal developed by NIC,” the cabinet note said.
The rules said that before any person is employed as a security guard or supervisor, the agency shall satisfy itself about the antecedents of the person. As far as security training is concerned, the controlling authority will have to frame the detailed syllabus for training the security guards in accordance with the National Skill Qualification Framework. For entry-level, this training will be for a minimum period of 100 hours of classroom instruction and 60 hours of field training spread over of at least 20 working days.
Private Security Agencies are business establishments formed with the purpose of offering security services to businesses in various sectors, including banking, Information Technology, Finance, Industries, etc.
These agencies cannot exist unless they have obtained the license to work in the State.
The Goa Government formulated the Goa Private Security Agencies Rules, 2008 in accordance with the Central Model Rules 2006 for the regulation of security agencies.
The Cabinet Note said that now the Ministry of Home Affairs, Government of India, has directed all States to adopt Central Model Rules, 2020, in the exercise of the powers conferred by Section 25 of the Private Security Agencies (Regulation) Act 2005
Conclusion
India is persistently exposed to formidable security challenges and there is an increasing threat from the rising crime rate and escalating terrorism. On the other hand, the police-public ratio in India is 136.42 police personnel to protect every 1 lakh citizen which is a huge gap generally bridged by Private Security Guards (PSGs) being our first line of defense.
There has been tremendous growth in this industry as the security guards have become omnipresent in private and public areas including offices, IT parks, metro stations, malls, hotels, airports, various events, and public gatherings.
Security Agencies perform a critical function in ensuring that the industry and its human and physical assets are safeguarded all the time
The operations of security service providers are governed by the Private Security Agencies Regulation Act 2005 (PSARA)
Labour law compliance is of critical importance in order to abide by the PSARA Act and several other related labour laws are necessary to ensure that security service agencies and principal employers that engage them operate smoothly and efficiently as per the laws of the land.
Karma Management Global Consulting Solutions carries out over 5000 vendor audits per month including that of major security agencies associated with the principal employers all over the country.
With a thorough checklist in place, Karma Managements expert Auditors carry out a rigorous audit of such Security Agencies monthly and submit their evaluated reports to the principal employers, giving them a hundred percent accuracy on where do the Agencies stand as far as compliances are concerned.
Karma’s Auditors are also able to put together a comprehensive analysis of labour law compliance trends and pain points experienced by security service agencies and principal employers who engage them so that the Leadership Team of Karma Management are able to take them up with the authorities at the topmost level.
Key amongst the non-compliances trending across the industry are:
Driven by lack of resources and uninformed absenteeism, several security personnel are usually found working multiple shifts and for more than 9 hours every day
For the overtime hours worked, security guards are not paid at twice the rate of ordinary wages
Many organizations pay overtime wages at a single rate or are making overtime payments on basic wages as opposed to the gross earnings of the worker.
In addition, security personnel is also engaged in excess hours of overtime.
Audit data analyzed indicates that in most cases, security personnel ends up working anywhere between 40 – 150 hours of overtime a month which is a serious violation of the law.
Some agreements are sham in nature
No weekly offs are given
Proprietory blog of Karma Global Tech Management Firm
This blog has been collated and compiled by the internal staff of Karma with the knowledge and expertise that they possess, for its monthly newsletter Issue 04 of October 2022 in case of specific or general information or compliance updates for that matter, kindly reach out to the
Marketing Team – Kush@karmamgmt.com / yashika@karmamgmt.com