Advice please on rates of pay

[LaraBeauty]

Hi guys,

I need some advice...
I'm working part time at a salon, I love my boss she is great and love the people I work with however... It was agreed that I would be self employed but paid each month on an hourly rate the rate is £6.25 ph. I'm 26 and just seen that the national minimum wage is £6.31 so not only do I feel undervalued for being a level 3 therapist but I feel worse now.... What do you all think and how do I approach this? I don't want to upset ppl x

 

[Haylez250]

Hi Lara. I employ people in my salon and pay just above minimum (£6.50 for my junior therapist and £7 for my nail tech) plus 10% commission on anything they bring in over and above their weekly wage.

To be honest I think it's cutting corners to 'employ' someone to be 'self-employed'. It sounds like she wants you to bring in business but not have the hassle of any paperwork etc.

If you were truly 'self-employed' you'd be able to choose your own hours, but your own products, and ultimately be bringing in more money.

If you were 'employed' you'd have paid holidays, no paperwork, products provided but probably be paid less (at least minimum) and have your hour dictated to you.

This is just my opinion but it sounds a bit 'grey' to me. I suppose as you've already agreed to it it's very difficult but I'd be worried what other corners she is cutting? Are you insured by her or do you have to provide that yourself? Do you have a contract to protect you if you are laid off?

The best bet would be a discussion regarding a written copy of your contract and approaching the subject of minimum wage... You're not being cheeky it's a requirement by law.

 

[MrsHBeauty]

If your self employed there's no minimum wage.

Your either employed and get min wage or more, with holiday pay and employment rights and your employer takes you tax and national insurance out from your wages and pay HMRC or your self employees and pay a rent or commission for renting a space dictate your own working hours, uniform etc no holiday pay, no minimum wage, no guaranteed wage and responsible for your own tax and national insurance.

It sounds like you at being treated as an employee whilst having mine of the benefits.


Jemima

 

[JennyGillo]

Hi you can't be self employed and get paid an hourly rate? You are one or the other if your paid hourly you are employed and have all the rights of being employed. Self employed you work the hours and days you choose you must clarify this or your boss will be investigated and could be fined.

 

[faye_g]

You cant get an hourly rate if your self employed she could get into trouble with the tax man as shes avoiding paying your National Insurance, Maternity, and sick pay etc too, if she wants to pay you hourly she will have to employ you abd pay national minimum wage

 

[laurakate]

Hi guys,

I need some advice...
I'm working part time at a salon, I love my boss she is great and love the people I work with however... It was agreed that I would be self employed but paid each month on an hourly rate the rate is £6.25 ph. I'm 26 and just seen that the national minimum wage is £6.31 so not only do I feel undervalued for being a level 3 therapist but I feel worse now.... What do you all think and how do I approach this? I don't want to upset ppl x

The way she's paying you is flawed in multiple ways....

If you're being paid an hourly wage then you are classed as an employee and should be given holiday pay as part of that. If you were self employed you would be choosing your own hours of work and choosing what treatments to offer at what prices. Look on the government website for confirmation of this.

If you were an employee (which technically it doesn't sound like you are) you should be paid £6.31 per hour because that's the minimum wage.

 

[Robin Abbi]

Hi,

You don't become "self-employed" just because your manager says that's how they want to engage your services. There's far more to it than that. Your status is governed by the facts of your relationship with the business you work for and any other work you may do or seek elsewhere.

If you are not sure about your employment status - either self-employed/employee, you can take the employment status indicator test.

The good news is that the test is anonymous - you don't need to give any personal information.

The test is at the HMRC website [link] .

It is possible to be self-employed and to be paid an hourly rate. Lots of genuinely self-employed people work that way - Public relations people, IT professionals, musicians, consultants, graphic designers to name a few. But, being paid an hourly rate is actually one of the main indicators that you are really an employee. So, to be paid by the hour but to be considered self-employed there needs to be other evidence of self-employment. For example: you have lots of other clients for whom you provide services; or that you employ your own staff to help you; or you have your own business premises or machinery.

If your relationship with the business is one of employment then the business is legally obliged to operate PAYE for you and to report any payment they make to you, no matter how small, via RTI (Real Time Information).

If your relationship with the business is one of genuine self-employment then you are legally obliged to inform HMRC that you have become self-employed and register for self-assessment.

As pointed out in other replies, self-employed persons are not eligible for the protection of the minimum wage.

Hope this helps.

Best wishes,

Robin