Who takes the deposit?

[amanda999]

So I have a girl who comes in and does treatments occasionally when booked. She used to be a nightmare and would constantly change or cancel clients bookings which as owner of salon annoyed the life out of me. Anyway we started taking deposits more so she had to turn up than in fear of clients not. Anyway we had a client pay deposit but then cancel on morning of booking, we informed the therapist by text as she never picks up the phone. Twenty mins after the appointment time should have started she still not arrived and finally texts back saying "oh ok I'll be in to get the deposit" Now I've said no because you clearly didn't bother getting in for treatment and I said that if she did arrive I would give half deposit and keep half. She saying shes now quitting because she should get 100% of the deposit and should be able to Pop in later to get it. Tbh I'm not fussed she's quitting she's more hassle than she's worth but who should get deposit in your opinion?

Thanks

 

[AcidPerm]

What a mess! I assume she is self employed?

Sorry, but you can't take any of the deposit otherwise that's theft. The deposit is to secure the services of your SE therapist and is a legal contract between the client and the therapist.

It's nothing to do with you. You are a third party to the contract.

Sounds like you assumed as she is self employed it would be a nice little earner but has become more trouble than it's worth?

This is not uncommon when you go into these arrangements in a casual way. Next time, pay for decent legal advice and get watertight contracts drawn up so both parties know where they stand in the event of any difficulties arising.

It will save you tons of grief in the long run!

 

[amanda999]

She is self employed. When people book she comes in. We use the room for various things. Her being one of the treatments. So if the rooms booked out for her no one else uses it

 

[Baggybear]

As she is self employed then all deposits or booking money for her services are hers.

She still has to pay you whatever you have agreed as a set rent (or percent split) as the room was booked out for her and the cancellation was too late to pass on the space to anyone else.

Self employed can run their business any way they want and although you don't like how she runs hers there isn't a lot you can do about it. If your unhappy though you may be better off going your separate ways and maybe looking for another therapist who wants to rent space that has similar business ethics to you.

Remember when renting you should be looking for people that will complement your business so if you don't feel they are a good fit with your business and ethics don't rent to them.

 

[cardell]

I'm assuming no proper contract has been set up. As she didn't turn up for the client anyway i wouldn't give her the deposit either as its you who lost out on other room bookings being taken. She's lost nothing not even travel expenses and possibly would have caused you to apologise to client if she didn't show and they hadn't cancelled. I would take that as a last chance anyway, you said she often messes you around. In future do contracts with ALL staff.

 

[Baggybear]

I'm assuming no proper contract has been set up. As she didn't turn up for the client anyway i wouldn't give her the deposit either as its you who lost out on other room bookings being taken. She's lost nothing not even travel expenses and possibly would have caused you to apologise to client if she didn't show and they hadn't cancelled. I would take that as a last chance anyway, you said she often messes you around. In future do contracts with ALL staff.

The problem with the above statement is that this is not STAFF, this is a self employed therapist and her landlord.

The landlord has no right to the therapists takings be that a booking fee, a cancellation fee or full payment for a service done.

The only contract that there should be is a rental agreement. This rental agreement still stands and the self employed therapist owes her rent on the room for this canceled appointment as agreed.

 

[cardell]

What about commission though? (Not sure if the therapist is rent or commission) and if rent and she didn't turn up anyway the salon would have lost the rent from her not paying it/turning up.

 

[Baggybear]

What about commission though? (Not sure if the therapist is rent or commission) and if rent and she didn't turn up anyway the salon would have lost the rent from her not paying it/turning up.

No the salon doesn't lose rent by her not turning up for this appointment.

The agreed rent is still due when a self employed therapist is ill, the agreed rent is still due when the self employed therapist takes holidays or days off and the rent is still due for last minute cancellations that mean the room can't be filled with another appointment.
If the appointment time was filled (by the same therapist or another one using the same room) then the rent from whoever actually used the room would be due but would then not be due from the canceled appointment.

If there is a percent split agreement then the salon would get their previously agreed percent of the booking fee as the room was not able to be re-booked.

The salon is the landlord, they should have a rental agreement that makes all this clear from the start - obviously this salon doesn't have this as they are asking what to do.
Rental to self employed therapists should be extremely simple but people keep making things complicated. Take it back to simple renting, you've agreed to rent at either a set price or a percent split, either way the salon gets paid. The salon has no right to keep the self employed therapists money, they need to wait until their rent is due to be paid.

Just like if you rent a home, you pay your rent as agreed. You still pay the rent when you go away on holiday and you pay the rent when you are ill even if you haven't worked because you still owe the landlord the rent.

 

[amanda999]

Hi all.

With regards to the two above comments-
The therapist pays commission not rent.

Half of the deposit, which is what I offered to split, would have meant we take the fee we should have had and she takes the other half.

 

[Baggybear]

Hi all.

With regards to the two above comments-
The therapist pays commission not rent.

Half of the deposit, which is what I offered to split, would have meant we take the fee we should have had and she takes the other half.

So she's paying a percent and the rent for the room will get paid (& it should be paid along with any other rent due on time) but the money is all hers and then she should be paying you any rent due NOT you keeping half and paying her what is left. Ideally she should be the one handling all her own money, you should only have money of her's when she's paying the rent.

 

[Julie-Liz]

I think Baggybear has this covered. The only monies due to you are rent payments. So however you work it out (daily/weekly/monthly %split or fixed amount) that is all that is due to you, not the deposit for a treatment that she possibly didn't show up for despite the fact the client cancelled. Either way she is supposed to handle her own takings then give you your commission amount. Not the other way around. I hope you find a new therapist with a similar ethic to you if your previous one was leaving clients in the lurch but that's her look out.

 

[xXcharleyXx]

So she's paying a percent and the rent for the room will get paid (& it should be paid along with any other rent due on time) but the money is all hers and then she should be paying you any rent due NOT you keeping half and paying her what is left. Ideally she should be the one handling all her own money, you should only have money of her's when she's paying the rent.

Technically as she is on a commission split and legally all payments can be taken centrally
The salon is legally entitled to deduct what they are owed from the money as that percentage is the salons not the self employed staff
If she was paying room rental then the full amount would be gave and expected to be paid back on invoice however for a percentage 50% is te salons 50% is the therapists so the salon only has to pay the 50% of the remaining monies (the therapists share)

Due to her not being in room rental only a percentage (commission) of the money is hers which the salon owner must pay back

 

[amanda999]

So I am correct then. The amount she should have given the salon for client was £30. The deposit paid was £60. I offered to give her £30 and keep my £30 as expected. She said she should have 100% of it. And me nothing.

 

[libbylou]

She booked the room , so take full payment for time booked out. If client canceled through you but deposit was paid then take % as you normally would. I would assume the only time you can take a full payment is when the room is booked out and the client/therapist does not show , then you are still owed payment regardless . X

 

[xXcharleyXx]

Yes your correct
Due to it being s percentage if you manage payments through your till then you are allowed to keep your % and then give the therapist her %

With regards to the above comment if the client doesn't show you can keep the percentage of profit if no deposit was taken the therapist can't be charged anything for the time as that wouldn't be a percentage it would be rent which is going against your agreement.
However if the therapist doesn't turn up for the appointment but the client does I'd say the client is entitled to a 100% refund of any monies paid unless you have another therapist who can carry out the treatment who would then get the 50%

In regards to contract as she is self employed in a commission basis a room rental agreement is pretty pointless and would have the wrong terminology in it, you need to get a sub contractor contract of service agreement and I would recommend having this in place for all % based agreements
For room rental either a room rental agreement from NHF or a subletting contract for part of the premises should be drawn up

If you don't want to use the NHF for any reason money etc you can find all the contracts you need on law depot which is a free to use site for 30days
It goes through a wizard with you to find all the correct terms that you need asks whether you want additional clauses etc, download what you need save to your PC and change the names and dates (or leave blank and fill in in pen) when you need to and print out, on these I would always recommend having a witness signature on.

 

[Carlalouise]

So I am correct then. The amount she should have given the salon for client was £30. The deposit paid was £60. I offered to give her £30 and keep my £30 as expected. She said she should have 100% of it. And me nothing.

I rent out my nail desk on a 30/70 split, we don't do deposits but if we did and the client didn't show up, you've both lost out so I would do exactly the same, take 30% of the deposit and give 70% to my nail tech.

I don't see why she should get everything and not give you your percentage!