Note: This article covers the information for UK Jurisdiction.
When running a beauty salon, spa or hairdressers/barbershop, it is crucial to know your therapists, barbers or stylists’ rights. Employment laws can be confusing, especially for business owners or managers new to hiring employees.
The hair and beauty sector is a particularly interesting place because hiring staff isn’t as straightforward as it is with other business sectors. You can hire an employee to work directly for you on a full or part-time contract, or you can hire staff that are considered to be self-employed.
But you need to understand what defines the difference between the two and make sure that if you hire self-employed staff, you don’t fall foul of the IR35 rules if your business is based in the UK.
In a beauty salon or hairdressing/barbershop, your workers are self-employed or employees. Your employees can’t be both.
You can advertise for staff, enrol them on your salon’s payroll, and then pay them an hourly rate. Or you can hire them off-payroll as a self-employed contractor.
Employee rights
If you choose to hire your salon staff on contract, they will be entitled to be paid the national minimum wage according to their age, but you can pay them whatever salary you like over the NMW. Your employees are also entitled to paid holiday entitlement, sick pay and maternity/paternity leave.
You are responsible for withholding your contracted employee’s tax and National Insurance contributions. You are...
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