Self employment question

[Emmylou411]

Hi all I’m looking at becoming self employed in the salon I work in and the owner would like 40% of my takings. This includes full use of the salon with as many chairs and all equipment too. He has said that when I am off sick or on holiday I should pay a retainer for the chair but I know people in salons that don’t have to. My friend rents a chair and when she is away she also pays for this chair but girls that are in a percentage scheme don’t. What do you think is right as I am not actually renting a chair as such? Thanks for any advice

 

[JaneyDryBar]

40% of what takings if you aren’t there? Or is there a set amount he is asking for? x

 

[Emmylou411]

40% of what takings if you aren’t there? Or is there a set amount he is asking for? x

So he wants 40% of my takings when there and when I’m not there pay a fixed price for the chair -£40-£50 a day. However I don’t know if this is fair as I’m not renting a chair In the first place ‍

 

[Emmylou411]

So he wants 40% of my takings when there and when I’m not there pay a fixed price for the chair -£40-£50 a day. However I don’t know if this is fair as I’m not renting a chair In the first place ‍

I didn’t know if renting a chair and paying a percentage of takings has the same rules

 

[JaneyDryBar]

I’d like to hear other people’s views on this too x

 

[AcidPerm]

Who’s idea was it for you to go self employed? He can’t make you swap from being employed so if you’re not keen, tell him.
Dont agree to anything that you’re not completely happy with. Being self employed is often a great move for many hairdressers but it doesn’t suit everyone.

Yes, it’s generally known as a chair rental agreement regardless of how it’s paid, whether a set rent or a percentage split of your takings.

When you’re self employed, it’s up to you to negotiate the best deal you can and on a percentage split, the owner loses money if you’re not there but equally, if you’re very busy, they’ll earn more than if they rented out the chair for a set fee.

You don’t normally mix the two so I think he’s pushing his luck.

Print out a copy of the HMRC guidelines (link below). Read them carefully so you understand how it’s meant to work. Unfortunately, some ex-bosses still try to treat their former staff as employees without providing the benefits (sick pay, paid holidays, maternity pay etc.) so you’ll need to keep your wits about you and stand firm.

https://www.salongeek.com/threads/hmrc-guidelines-for-determining-self-employment.295298/

 

[Emmylou411]

Thanks for your advice I do appreciate it. It is my idea to become self employed as I have become aware of what I could be earning by doing this as he pays me only minimum wage with 15 years experience behind me. I triple my wage every month and So I think it’s silly of me to stay employed when I could be earning much more. I just don’t want him to mug me off. When he has a holiday he has asked if i would still cover his column and split the money 60/40 still so he’s still getting paid for being away but if i go away he can’t cover me or anyone else so I get nothing plus have to pay him for the chair not being used.

 

[AcidPerm]

Wow, he’s really pushing his luck. Start off as you mean to go on.

Tell him you’ll do his clients for 100% of the money, but only if you have space in your column.
Point out that as you’ve already got a busy column, you won’t have time to do all his clients too and if you did them, you’d be prioritising his clients over yours. Why should you do that?

If he wants rent money all year round, you’ll agree a weekly chair rent. If he wants a percentage of your takings, he doesn’t get anything when you’re not there. Remind him that he’ll be saving £xxx on sick pay and holiday pay etc.

If you let him take liberties at this stage, I guarantee he’ll take it for granted and treat you as his flunky in no time at all.

 

[Emmylou411]

Thank you that has really helped me, it’s good to find out what other people think is right and fair because I don’t know what is and don’t want to be mugged off.