Self Employed Nail Technician’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, beauty therapist or nail care technician is a self employed sole trader and pays a fee to a salon in order to use their premises and equipment.
This Self Employed Nail Technician's (Chair Rental) Contract (Own and Salon Clients) is designed for use by self-employed nail care technicians in order to use the equipment and premises of a salon.
Under the terms of this agreement, the nail care technician 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 nail care technician’s takings or a combination of both of these elements.
As well as providing for the nail care technician to serve their own clients, with the client paying the nail care technician direct, this template contract also allows the nail care technician to provide services to the salon’s own clients where the salon refers any of its clients to the nail care technician on any occasion. In this case, instead of the client paying the nail care technician direct, the client pays money to the salon and the salon then pays a percentage to the nail care technician.
This Self Employed Nail Care Technician's (Chair Rental) Contract (Own and Salon Clients) is written in such a way that there is a clear distinction between the nail care technician’s clients and the salon’s clients. In addition, the nail care technician 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 nail care technician’s clients.
This template aims to minimise any risk that the nail care technician 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 nail care technician, the salon and any person engaged by the nail care technician to do any of the work for the nail care technician, 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 nail care technician, 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 nail care technician is a key starting point. As a self-employed individual (rather than as an employee of the salon), the nail care technician 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 nail care technician is a self-employed individual but there is also a version of this template, the Nail Technician Chair Rental (Service Company) Agreement (Own and Salon Clients) , where the nail care technician 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 nail care work will nevertheless be carried out by the nail care technician 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 Nail Technician's (Chair Rental) Contract (Own and Salon Clients) contains the following clauses:
1. Definitions and Interpretation
2. Nail Technician’s Use of Salon’s Equipment and Resources
3. Nail Care Services
5. Self-Employment etc.
7. Nail Technician’s and Salon’s Indemnities
9. Term and termination
10. Data Protection
11. Nature of the Agreement
14. Law and Jurisdiction
1 – Items, materials and services provided by Salon
2 - Privacy Notices
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