Self Employed Hairdresser’s (Chair Rental) Contract
In many businesses, particularly those associated with hair and beauty,
chair rental agreements are popular. Under such arrangements, 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.
This Self Employed Hairdresser (Chair Rental) Agreement is designed for use
by a salon engaging a self-employed hairdresser whereby the salon allows
the hairdresser to use the salon's equipment and premises.
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 the Service Company
Contractors subfolder) a version of this template (the Hairdresser Chair
Rental (Service Company) 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.
The data protection provisions in this document have been updated in line with the UK GDPR.
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
1. Definitions and Interpretation
2. The Hairdresser’s Services
3. Nature of the Services
4. Self-Employment Status of the Hairdresser
6. Hairdresser’s Indemnity
7. Salon’s Indemnity
10. Data Protection
11. Nature of the Agreement
14. Alternative Dispute Resolution
15. Law and Jurisdiction
Schedule: Privacy Notices
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