Small Business Guidance

User Login






Lost Password?
No account yet? Register

Newsletter

Subscribe to our newsletter!






 
Renting chairs E-mail

Could you please advise me on the best way I can offer chair rental, what percentage should I ask & what it should include. I would also like some advise on a good company (Value for money) for liability insurance. I am based in Lancashire & just about to open in the next month,

Kind regards

Michelle

Dear Michelle

Everybody wants to shrug off the responsibility of employment and renting chairs is a good way to do it. But I have to be honest with you and say that unless you seek advice from the right government body, you could be asking for problems. Last time we looked at the legislation rent-a-chair was not an acceptable form of arrangement within a salon and the stylist could at any time claim employment laws against the employer forcing him to pay tax for money paid, holiday pay and so on. To be on the safe side why not pop into your local citizens advice board which is in your area and ask who they can line up for you to ask advice from without being charged. It can be done but each country has it's own rules.

To answer your question:How much the stylist pays you per week is a negotiated amount between you and the stylist. If she is a renter than she must have her own business within your salon. She is in all intensive purposes a tenant and should have her own till, stock and trading name along with a rent book from you and run her own business just as you do from your landlord. On the other hand, if she is on a commission or a wage and commission (part of her takings) without a definite agreement suited to your country's laws and on set lines agreed by both parties, then the stylist will be deemed employed. Usually a wage and commission or just commission amounts to 50% of what the stylist takes less VAT or GST

In an ideal world most employers would formally employ the stylist on minimum wage and add commission over a set sum of takings or a rising scale. This way the employer pays about 35% of the stylists takings and has the other 15% to cover the holiday pay, employers contribution and so on.

If you are worried about how to make the salon pay enough you should order Rolando Rizzo's book on the business of hairdressing. Look on his blog on this site.

Insurance companies are tobe compared and it would be up to you to make the choice for the best price andthe cover you would get. Hairdressing insurance companies are not always the cheapest. 


Views: 58

Be first to comment this article

Only registered users can write comments.
Please login or register.

 
< Prev   Next >