Self Employed Beauty Therapist’s Contract Template

Self Employed Beauty Therapist’s (Chair Rental) Contract

EMP.SELF.03

In many businesses, particularly those associated with hair and beauty, chair rental agreements, whereby the hairdresser or therapist is self employed and pays a fee to a salon in order to use their premises and equipment, are popular.

This Self Employed Beauty Therapist (Chair Rental) Agreement is designed for use by a salon engaging a self-employed therapist whereby the salon allows the therapist 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 therapist’s takings. Optional clauses in this contract also allow the therapist 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.

The document is written in such a way that there is a clear distinction between the therapist’s clients and the salon’s clients. In addition, the therapist 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 therapist might be deemed to be a de-facto employee of the salon rather than 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 therapist, the salon and any person engaged by the therapist to do any of the work for the therapist, and all related arrangements between them.

HMRC provides some guidance on its website about self-employment. Its decisions as to whether someone 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 and the therapist take professional employment law, tax, and NIC advice in relation to the particular circumstances before you decide to use or adapt this template.

Nevertheless, a carefully worded contract ensuring the independence of the therapist is a key starting point. As a self-employed individual (rather than as an employee of the salon), the therapist 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 beauty therapist is a self-employed individual but we have also included (in the Service Company Contractors subfolder) another version of this contract (the Beauty Therapist Chair Rental (Service Company) Contract) where the therapist 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 beauty therapy work will nevertheless be carried out by the therapist him/herself it is his/her personal service 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 (Chair Rental) Agreement contains the following clauses:

1. Definitions and Interpretation

2. The Therapist’s Services

3. Nature of the Services

4. Self-Employment Status of the Therapist

5. Consideration

6. Therapist’s Indemnity

7. Salon’s Indemnity

8. Liability

9. Termination

10. Nature of the Agreement

11. Severance

12. Notices

13. Alternative Dispute Resolution

14. Law and Jurisdiction

This document is in open format. Either enter the requisite details in the highlighted fields or adjust the wording to suit your purposes.

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