Self Employed Beauty Therapist’s (Chair Rental) Contract (Own and Salon Clients)

In many businesses, particularly those associated with hair or beauty treatments, chair rental agreements are popular. Under such arrangements, the hairdresser, nail care technician, or beauty therapist is a self employed sole trader and pays a fee to a salon in order to use their premises and equipment.

This Self Employed Beauty Therapist's (Chair Rental) Contract (Own and Salon Clients) is designed for use by self-employed beauty therapists in order to use the equipment and premises of a salon.

Under the terms of this agreement, the beauty therapist makes fee payments to the salon in return for being permitted to use a salon chair and other equipment. This template provides alternative means of charging these fees: payment can be in the form of a standard fee or a percentage of the beauty therapist’s takings or a combination of both of these elements.

As well as providing for the beauty therapist to serve their own clients, with the client paying the beauty therapist direct, this template contract also allows the beauty therapist to provide services to the salon’s own clients where the salon refers any of its clients to the beauty therapist on any occasion. In this case, instead of the client paying the beauty therapist direct, the client pays money to the salon and the salon then pays a percentage to the beauty therapist.

This Self Employed Beauty Therapist's (Chair Rental) Contract (Own and Salon Clients) agreement is written in such a way that there is a clear distinction between the beauty therapist’s clients and the salon’s clients. In addition, the beauty therapist is prevented from soliciting the salon’s clients. The template favours the salon in that it does not also include any prohibition on the salon from soliciting the beauty therapist’s clients.

This template aims to minimise any risk that the beauty 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 they are 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 beauty therapist, the salon and any person engaged by the beauty therapist to do any of the work for the beauty 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, whether you are a salon or beauty therapist, 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 beauty therapist is a key starting point. As a self-employed individual (rather than as an employee of the salon), the beauty therapist has their own clients, is free to engage a suitably qualified person to do some or all of the work in their place, and is free to determine when and how work is carried out.

This document is compliant with Data Protection Legislation.

This form of agreement is suitable to use only where the beauty therapist is a self-employed individual but there is also a version of this template, the Beauty Therapist Chair Rental (Service Company) Agreement (Own and Salon Clients) , where the beauty therapist instead operates through the mechanism of a personal service or other intermediary 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 beauty therapist him/herself or their assistant, it is the 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's (Chair Rental) Contract (Own and Salon Clients) contains the following clauses:

1. Definitions and Interpretation

2. Beauty Therapist’s Use of Salon’s Equipment and Resources

3. Beauty Therapy Services

4. Competition

5. Self-Employment etc.

6. Consideration

7. Beauty Therapist’s and Salon’s Indemnities

8. Liability

9. Term and termination

10. Data Protection

11. Nature of the Agreement

12. Severance

13. Notices

14. Law and Jurisdiction

Schedules:

1 – Items, materials and services provided by Salon

2 - Privacy Notices

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