Independent (Company) Nail Technician (Chair Rental) Agreement
In many businesses, particularly those associated with hair and beauty,
chair rental agreements, whereby the hairdresser, therapist, or technician
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) Nail Technician (Chair Rental) Agreement is
designed for use by an independent nail technician’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 template aims to help reduce the risk that in reality, the technician
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 technician’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 contract 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 technician.
HMRC provides some guidance on its website about employment, sole traders,
self-employment, 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 technician of employment law, tax, and NIC.
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 technician) 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 chair rental agreement payment to the salon takes
the form of a standard fee plus a percentage of the technician’s service
company’s takings. Optional clauses in this contract also allow the
technician’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 technician’s service
The agreement is written in such a way that there is a clear distinction
between the technician’s service company’s clients and the salon’s clients.
In addition, the technician’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 template is suitable to use only where the technician is operating
through a personal service company but we have also included in this
subfolder a version of this contract (the Self Employed Nail Technician
(Chair Rental) Agreement) where the technician, 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) Nail Technician (Chair Rental) Agreement
contains the following clauses:
1. Definitions and Interpretation
2. The Technician’s Services
3. Nature of the Services
4. Status of the Technician
6. Technician’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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