Employment Status within Salons Explained
Although it’s common practice within the industry, our HR department has long advocated that employment status within salons is not straight forward and that our salon clients cannot simply contract their stylists and beauticians on a self-employed basis in order to avoid employer responsibilities. Where a dispute arises, an employment tribunal would always look behind the agreement to establish the true nature of the relationship.
As in the recent case between hair stylist Meghan Gorman and Terence Paul salons, a ruling of false self-employment could pave the way for your workers to successfully claim for notice, holiday and redundancy pay at a potential cost of thousands to your salon. This landmark ruling in which a so called self employed stylist was granted employee status by the court, has been described as being of huge significance for the entire beauty industry and gives the green light for self-employed salon workers throughout the country, to look at their own agreements and consider whether or not they are being treated fairly.
A ruling of false self employment will not only mean the requirement to pay backdated holiday, notice and redundancy pay, but also opens the door to further employment related claims such as;
- Unfair or wrongful dismissal;
- Failure to provide a contract of employment and;
- Unauthorised deduction from wages
How to Establish Employment Status
In order to protect your business, you need to ensure that your self-employed workers truly are self-employed. To do this, you need to look at the nature of your relationship with them.
Would a client consider the worker to be an employee of your salon?
Do you have a degree of control over the quality of their work and their working hours?
Do they have to request holiday and do you have a say in when they take it?
If you answered yes to any of the above questions, it is unlikely that the worker could be considered to be running their own business from your premises and you should urgently assess their employment status.
Take the Test >>>
DOWNLOAD our free Guide to Employment Status along with a quick and easy Status Indicator and take the first step to safeguarding your business.
To talk to us about how we can support your business and for a no obligation HR audit, contact email@example.com.