Self Employed Beauty Therapist (Chair Rental) Agreement
In many businesses, particularly those associated with hair and beauty,
chair rental agreements, whereby the hairdresser or therapist is a self
employed sole trader and pays a fee to a salon in order to use their
premises and equipment, are popular.
This document is in compliance with the GDPR (General Data Protection
This Self Employed Beauty Therapist (Chair Rental) Agreement is designed
for use by self-employed therapists in order to use the equipment and
premises of a salon.
Under the terms of this agreement, payment to the salon takes the form of a
standard fee plus a percentage of the therapist’s takings. Optional clauses
in this contract also allow the therapist 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 therapist.
The agreement is written in such a way that there is a clear distinction
between the therapist’s clients and the salon’s clients. In addition, the
therapist is prevented from soliciting the salon’s clients. Optional
elements within the contract allow this provision to be ‘softened’ or
‘toughened’ as appropriate.
This chair rental agreement aims to reduce the risk that the therapist
might be deemed to be a de-facto employee of the salon rather than a sole
trader who is a self-employed contractor. However, whether he is treated as
self-employed by HMRC, an employment tribunal, or any other body, will
depend not only on what is contained in his contract but also on all other
circumstances: those circumstances will include the way in which the
contract is implemented, and the conduct of the therapist, the salon and
any person engaged by the therapist to do any of the work for the
therapist, and all related arrangements between them.
HMRC provides some guidance on its website about self-employment. Its
decisions as to whether someone is a sole trader who is self-employed are
often based on a “balancing exercise” in which it gives weightings to
various factors. However, neither the HMRC guidance nor case law are
sufficiently precise to enable anyone to predict how in any particular case
the “balancing exercise” would be carried out or what HMRC’s conclusion
will be about that particular case. For that reason we recommend that you
take professional employment law, tax, and NIC advice in relation to your
particular circumstances before you decide to use or adapt this template.
Nevertheless, a carefully worded agreement ensuring the independence of the
therapist is a key starting point. As a self-employed individual (rather
than as an employee of the salon), the therapist is, for example, free to
engage a suitably qualified person to do some or all of the work in his
place, and is free to determine when and how work is completed (subject of
course to the salon’s requirements).
This contract is suitable to use only where the beauty therapist is a
self-employed individual but we have also included in this subfolder a
version of this contract (the Independent (Company) Beauty Therapist (Chair
Rental) Agreement) where the therapist instead operates through the
mechanism of a personal service company. Please see the information page
accompanying that version for guidance about tax, employment status, IR35,
and agency workers, where although the beauty therapy work will
nevertheless be carried out by the therapist him/herself it is his/her
personal service company which enters into the agreement with the salon.
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 Beauty Therapist (Chair Rental) Agreement contains the
1. Definitions and Interpretation
2. The Therapist’s Services
3. Nature of the Services
4. Self-Employment Status of the Therapist
6. Therapist’s Indemnity
7. Salon’s Indemnity
10. Data Protection
11. Nature of the Agreement
14. Alternative Dispute Resolution
15. Law and Jurisdiction
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