Self Employed Hairdresser’s (Chair Rental) Agreement

In many businesses, particularly those associated with hair and beauty, chair rental agreements whereby the hairdresser or therapist is self employed and pays a fee to a salon in order to use their premises and equipment are popular.

This Self Employed Hairdresser’s (Chair Rental) Agreement is designed for use by self-employed hairdressers in order to use the equipment and premises of a salon.

Designed to be compliant with IR35, this contract aims to ensure that the hairdresser is treated only as a self-employed individual and is never deemed to be employed by the salon. Whilst the relationship between the hairdresser and the salon must also function appropriately outside of the wording of the contract (and many don’t); a carefully worded contract ensuring the hairdresser’s independence is a key starting point.

Under the terms of this agreement payment to the salon takes the form of a standard fee plus a percentage of the hairdresser’s takings. Optional clauses in this contract also allow the hairdresser to provide services to the salon’s own clients. In this case, the clients would pay money directly to the salon with the salon then paying a percentage to the hairdresser.

This chair rental agreement is written in such a way that there is a clear distinction between the hairdresser’s clients and the salon’s clients. In addition, the hairdresser is prevented from soliciting the salon’s clients. Optional elements within the contract allow this provision to be ‘softened’ or ‘toughened’ as appropriate.

This contract is suitable to use whether the Hairdresser is a self-employed individual or self-employed but operating through the mechanism of a company vehicle. The parties clause has been drafted accordingly.

It is important to remember that the two parties cannot just decide the nature of the employment relationship between themselves; HMRC will look at the reality of the situation. The question of whether or not the relationship is genuinely one of self-employment is crucial, not just in employment law terms, but also in respect of IR35 issues and in deciding what tax is payable.

Optional phrases / clauses are enclosed in square brackets. These should be read carefully and selected so as to be compatible with one another. Unused options should be removed from the document.

This Self Employed Hair Dresser’s Agreement contains the following clauses:

1. Definitions and Interpretation
2. The Hairdresser’s Services
3. Nature of the Services
4. Self-Employment Status of the Hairdresser
5. Consideration
6. Hairdresser’s Warranties and Indemnity
7. Salon’s Warranties and Indemnity
8. Termination
9. Nature of the Agreement
10. Severance
11. Notices
12. Alternative Dispute Resolution
13. Law and Jurisdiction

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