Security Guard Contracts Explained
The key purpose of a security guard contract is to establish the legal relationship between two parties – the client or company hiring a security guard service and the security guard service providing the personnel. This document confers a sense of legitimacy to the agreement and serves as protection for both parties, as a written contract makes the duties and liabilities of each clear-cut and binding in a court of law if necessary. The security guard contract specifically sets out in written form what services the hired security guard is to perform, such as carrying out patrols, monitoring entrances and exits with respect to who is allowed to enter into the premises and if so at what hours and for how long, as well what action should be taken in case a trespasser or unauthorized person attempts to enter the premises . A security guard contract may also ensure that the security guard and the security guard agency or security guard company are legally protected from any liabilities or lawsuits that may ensue as a result of overlooking a threat or a trespasser invading the property to which security guards are hired to guard. In other words, both parties enter into a legal contract for mutual respect, gaining trust and compensation for damages that may occur as a result of injury or theft.
Components of a Security Guard Contract
In creating a binding and enforceable contract for the service of security guards, there are five key elements that must be incorporated into the agreement. These critical components are the scope of work, responsibilities, payment terms, contract duration and termination clauses.
The scope of work is the first step in determining how the contract will be outlined in terms of services provided. The security guard contract should contain detailed information about what is expected from a legal standpoint. This includes, but is not limited to, the following: While it may seem as if this section is wavering into various other areas of the security industry, it is important to remember that: The responsibilities of the security guard contract are opportunities for clarification between the parties, particularly the compensation element. The parties are free to allocate responsibility when it comes to determining all expenses. For example, the agreed upon fees for the security guards could be increased or decreased by: The manner of payment for the security guards is up to the contract, and should be clearly establish methods for how the guards will be compensated. The duration of the contract is a key component and must be reported in order to ensure that all parties involved are aware of the end of the contractual obligations. In other words, when is the security contract set to be concluded? The contract could choose to impose a specific termination date, or it could state that the contract will begin on a certain date and then terminate upon completing the scope of work. Termination clauses specifically call out when and how the contract may be concluded. Whether it be with or without cause, the termination of the contract must be understood clearly by all parties. For example, the contract should explicitly state if it has to be in writing, oral or a combination of the two.
Typical Terms in a Security Guard Contract
Several clauses appear frequently in security guard contracts. They serve to set expectations and define responsibilities for both parties. Below are three of the most common clauses:
Confidentiality Agreements – Confidentiality agreements are common in many contracts, however, their importance cannot be understated in security guard contracts. These guards are privy to highly sensitive and confidential information such as passwords, confidential processing instructions, and personal information including social security numbers. Like other confidential materials, any information shared with a security agent may not be disclosed without prior approval from the principal. These clauses generally address the repercussions should a contracted security guard disclose confidential information without consent. In most cases, the repercussions are defined as monetary compensation paid to the principal for the damages caused by a breach of confidentiality.
Limitation of Liability – Limitation of liability clauses address the amount and types of damages for which a security guard is liable. For example, if a security guard accidentally sets off a fire alarm on school property, a limitation of liability clause would prevent the school that contracted the guards from seeking compensation for the mental anguish caused to the school superintendent. Guards are also usually held to specific performance standards and quality of service. If a security guard fails to meet these standards, the principal’s recourse is usually limited to stopping the guard contract, therefore protecting the security guards. Though these clauses are helpful to both parties, they do not apply in all situations. Punitive damages cannot be waived in advance in most states.
Indemnification Clauses – Indemnification clauses are included in most contracts, however, typically not as frequently as the two previous clauses. These clauses state that a security guard agrees to assume financial responsibility if a claim is made against the principal. Many principals will add a number of requirements that must be met before the clause takes effect. For instance, the security guard may be required to keep a certain amount of insurance coverage and be required to immediately inform the principal when a claim is made. In most cases, indemnification clauses provide assistance to the principal, therefore offering no protection to the guards.
How to Create a Security Guard Contract
To ensure that all the parties are on the same page, it is important to carefully follow a step-by-step procedure in drafting a security guard contract. Without the proper procedure, this contract may be considered invalid, or certain provisions may be difficult to enforce later on. The basics for drafting a security guard contract are as follows: Step 1: Discussion First, the parties will need to have a discussion to determine the exact terms of the contract. This can be an informal discussion about how many hours the contract will cover and some of the duties of the guard. Both the guard and the client needs to make sure that they are in agreement with all the terms of the general conditions of employment, such as the daily work schedule, length of assignment and payment terms. Once all of these factors are discussed, the parties should draft a checklist to make sure all issues are covered. Step 2: Draft the Agreement Once the parties agree to the final contract terms, it is time to start the document. If the guard and the employer are represented by legal counsel, the lawyer will often draft the document and send it to the other party for review and comment. Often, however, the security firm will provide a sample agreement and the client may consult legal counsel, but the firm’s attorney will finalize all the terms in the document. This is a very typically practice in the security guard industry. Step 3: Signature The final step in the process is obtaining signatures. Both the guard and the employer should sign the contract in front of a notary public to ensure its validity. Although not always required, this is recommended. Once both parties sign the agreement, it is considered legally enforceable and each party can enforce the terms.
Security Guard Contract Template
The following is a sample of a Security Guard Contract. It is for informational purposes and to be used only as a guide. The below information is in no way a legally binding contract.
SECURITY GUARD CONTRACT
BETWEEN: [Name of Party A] , having an address at [address] (the "Customer")
AND: [Name of Party B] by addressing it at [Address of Company]. ("Your Security Company")
This agreement shall commence on [Date] and will terminate on [Date] unless terminated earlier.
Customer will pay at the hourly rate of [$XX.00]. The payment for service will be done on the [Name of Day] by [Time] and send via [Method of Payment].
The Security Company will be providing a security guard to be located at the Customer’s premises at [Address of Customers Property].
The Services will be provided on [Days].
The time of work for the Security Guard will be from [Time] to [Time].
The Security Guard will wear a company uniform while on duty and will be responsible to respond to and manage the alarm system while on duty. The Security Guard will open up and lock all doors at [Times]. The Security Guard will be responsible to document any incidents in the daily activity log. The Security Guard will not be responsible for any missing of any property unless it can be proven that the Security Guard was responsible for the lost property. The Security Guard will also be responsible for managing all the non-security issues that occur while on duty and will be responsible for contacting the appropriate company or emergency department.
The Customer agrees to provide the site with access code to the site computer system and necessary passwords.
The Security Company and the Customer both agree that no Guard or Company will engage in negotiations with any third parties to bring their business to the other’s company.
The Security Company agrees not to engage in any work or business that is a part of the Customers business.
Developing a Security Guard Contract
In order to meet the needs of particular organizations and to be in compliance with all applicable laws, security guard contract templates must be customized. Organizations vary in size, area(s) of operation, services, and resources. Thus, contract requirements will vary accordingly.
It is very important that organizations seeking to customize a security guard contract ask the right questions to ensure comprehensive contract provision and compliance with all applicable federal, state, and local laws.
For example, does a particular company want its guards to also check passes at the front gate of a facility? That may require additional security training. Will guards be carrying guns or simple night-sticks? Those requirements must be specified in the contract.
It would be smart and cost-effective for companies to work with a legal expert to review their contract terms (and conditions) to ensure that they are properly covered in case of a liability claim involving a guard. Consulting an attorney might also help the organization understand which arbiters/local authorities to use should a dispute arise.
An example of a contract is provided below. This contract is a basic, generic, sample security guard contract. A company considering hiring security guards to patroll its facilities or grounds would be well-advised to consider issues related to the employment of security guards, and how those issues might be addressed through a contract.
Legal Issues and Compliance
When drafting a security guard contract, it’s essential to consider legal considerations and compliance requirements for your region. In the United States, the federal government and state governments have laws pertaining to standard employment agreements, including security guard contracts. At the federal level, the Fair Labor Standards Act (FLSA) enforces payment of overtime and minimum wage laws. The FLSA also has strict laws in regard to the misclassification of contract and salaried employees. When determining the type of employee a security guard is, refer to the Internal Revenue Service (IRS) 20-Point Test of employee behavioral and financial controls.
The IRS 20-Point Test classifies employees as "contract" employees or "salaried" employees based on these 20 criteria:
Depending on how many of these criteria apply to a security guard, he or she may be classified as a contract or salaried employee. This decision is important as it determines how much Liable Private Security must pay to the guard. Also, employers may be required to pay federal income tax, FICA and FUTA taxes for salaried employees, depending on how the security guard is classified.
Federal law governs employees’ wages, whereas state laws govern contact agreements. Every state has its own laws regarding when a contact becomes valid and enforceable .
For example, if a company publishes a job advertisement for security guards asking them to perform specific duties for $9 per hour, and offers the position to someone who applies for it, then that company has verbally entered into a contract with that individual.
If the contract is taped by both parties, it doesn’t matter whether it has been drafted by a lawyer or the security guard employer. If the contract satisfies all legal requirements, it is enforceable.
In many cases, a contract may be legally binding, but unless it is written on the standard terms of business, it may not be possible to enforce.
All organizations should design a standard written form of security guard contract, based on these standard terms of business. These standard terms will ensure that all contracts are legally enforceable and complies with federal and state labor laws.
Other than the FLSA federal labor laws, most laws governing the employability of security guards vary from state to state. In general, here are some of the main restrictions for security guards:
Security guards serve a vital role in the United States and beyond. Although different laws apply to the employment of security guards, creating a security guard contract requires due diligence and legal considerations regardless of which state you operate in.
