Independent (Company) Beauty Therapist (Chair Rental) Agreement
In many businesses, particularly those associated with hair and beauty,
chair rental agreements, whereby the hairdresser or therapist is
independent (i.e. not an employee of the salon) 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 Independent (Company) Beauty Therapist (Chair Rental) Agreement is
designed for use by an independent therapist’s personal service company
which is to enter into an agreement with a salon in order for him/her to
use the equipment and premises of the salon.
This agreement aims to help reduce the risk that in reality, the therapist
carrying out the work through his/her personal service company is deemed to
be an employee rather than a self-employed contractor.
Nevertheless, he might still be treated as an employee by HMRC, a tribunal,
or any other body, and legislation (such as IR35, agency worker or other
rules) might still apply in a way which adversely impacts the therapist’s
or his/her company’s legal, tax or NIC position. Whether that is so will
depend not just on what is contained in this agreement but also on all
other circumstances. Those circumstances may include the way in which the
contract is implemented, and all other arrangements between the company,
the salon and the therapist.
HMRC provides some guidance on its website about employment,
self-employment, sole traders, IR35, and agency workers. Its decisions on
these points 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 would be about that particular case. For that reason we
recommend that, before you decide to use or adapt this template, you take
professional advice in relation to your particular circumstances as to any
impact on the service company and the therapist of employment law, tax, and
A carefully worded agreement ensuring the independence of the personal
service company is still a key starting point. Unlike an employee, the
company is an independent contractor which is free to provide any suitably
qualified person (rather than only the therapist) to carry out the work, it
is free to determine when and how work is completed (subject of course to
the salon’s requirements), and it is free to take on other clients.
Under the terms of this template payment to the salon takes the form of a
standard fee plus a percentage of the therapist’s service company’s
takings. Optional clauses in this contract also allow the therapist’s
service company 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’s service company.
The agreement is written in such a way that there is a clear distinction
between the therapist’s service company’s clients and the salon’s clients.
In addition, the therapist’s service company 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 only where the therapist is operating
through a personal service company but we have also included in this
subfolder a version of this agreement (the Self Employed Beauty Therapist
(Chair Rental) Agreement) where the therapist, as a sole trader, enters
into the agreement with the salon as a self-employed individual rather than
through a personal service company.
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 Independent (Company) Beauty Therapist (Chair Rental) Agreement
contains the following clauses:
1. Definitions and Interpretation
2. The Therapist’s Services
3. Nature of the Services
4. 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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