Self Employed Hairdresser (Chair Rental) Agreement

Self Employed Hairdresser (Chair Rental) Agreement

BS.SEMP.01A

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 Self Employed Hairdresser (Chair Rental) Agreement is designed for use by self-employed hairdressers 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 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.

The 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 template aims to reduce the risk that the hairdresser 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 hairdresser, the salon and any person engaged by the hairdresser to do any of the work for the hairdresser, 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 hairdresser is a key starting point. As a self-employed individual (rather than as an employee of the salon), the hairdresser 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 agreement is suitable to use only where the hairdresser is a self-employed individual but we have also included in this subfolder a version of this template (the Independent (Company) Hairdresser (Chair Rental) Agreement) where the hairdresser 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 hairdressing work will nevertheless be carried out by the hairdresser 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 Hairdresser (Chair Rental) 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 Indemnity

7. Salon’s Indemnity

8. Liability

9. Termination

10. Nature of the Agreement

11. Severance

12. Notices

13. Alternative Dispute Resolution

14. Law and Jurisdiction

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