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Legal Debates Surrounding Chair Rental
Posted by
Kate
Dated: March 13, 2009 12:55 PM
Chair rental remains a popular option for stylists and salon owners alike, but it can have a variety of legal complications.
David Wright, who advises habia and salons across the UK, answers some common questions arising from renting a chair.
I rent a chair in a salon and business has been slow. I have been offering a discount for repeat bookings but the salon owner has instructed me to cease this practice. Can he do this?
I have always emphasised the need for a carefully drafted contract of service for self-employed people. Often it is the small operational issues which are missed out and are cause of dispute.
The agreement should cover the pricing policy, for example and state that prices are set by the salon.
Where self-employed hairdressers are paying a flat weekly/monthly rent then offering a discount may be of little interest to the salon owner.
However, when the agreement involves a percentage of the income the discount affects the owner.
If your agreement does not have a specific clause about pricing then it is difficult to see how you have broken the agreement by controlling your own pricing structure.
I have been renting a chair for two years. The agreement is coming to an end and the salon owner is asking for a 25% increase in the weekly rent and 25% of my earnings. Can she do this?
If the agreement has ended then the whole agreement is up for re-negotiation. The salon owner can seek to increase the rent and a percentage of the takings.
Clearly you have to weigh up the impact of the increased costs to you and reach a business decision. If it is unattractive you can decline and move elsewhere.
In most cases the clients are yours and not the salons and therefore your services will be attractive to a rival salon and you will be able to advise your clients of the new location. In these circumstances the salon will have to take a view whether the proposed agreement will be likely to attract someone to take your place.
I have been renting a chair for approximately three years, with rent paid in advance, the salon owner has given me notice and asked that I do not return to the salon for the remainder of the notice period. Can she do this?
On the basis of what you have told me, no, she cannot. You have apparently already paid your rent for the duration of the agreement. If you were refused access you appear to have a legitimate claim for loss of earnings.
In my view, this would still be the case if the salon offered to return your rent. I am assuming the salon is hoping to protect the clients but as I said in my previous answer, normally the clients are yours rather than the salons unless there is some specific clause in the agreement. Once again this reinforces the need for the contract of service to be explicit in every detail.
I rent four chairs in my salon and the hairdressers are charged a weekly rent and 15% of their earnings. One of the team has claimed that rent should only be payable for 47 weeks as she is legally entitled to five weeks' holiday. Is she correct?
It seems like she might be a bit confused. The rent you charge is for the space and if your agreement says it is payable for 52 weeks then that is the agreement.
Employees are entitled to 28-days paid leave per annum, not five weeks, but she is not an employee she is self-employed.
In many cases the contract for service allows the person to allow someone else to deliver the services in their absence, normally subject to predetermined criteria, for example, that they be qualified to NVQ Level 3.
Chair rental has been a hot topic on the HJi forums - join in the debate.
More of David Wright's Legal Advice For Salon Owners
- Everyday Issues Affecting Salon Staff
- Staff Issues with Running Your First Salon
- Chair rental and the law
- Following the right disciplinary procedure with your salon team
- The law and redundancy in the salon
- Salon guidelines for maternity leave
- Salon staff's holiday entitlement
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