I have some work to do for small hairdressers, which is operated as a sole trader partnership with two partners. They have one employed staff doing 37.5 per week and has been there coming for 4 years. The person employed is not always covering her pay, and can be often sick, or absent of a day. In this climate the salon is feeling the pinch. They are happy with her work and the customers like her, and there have been no re cuts etc.
If the salon were to make her an offer of renting the chair, and then its up to her to get her clients, as well as phone generated business, would redundancy still have to be paid ?
If anyone has any experience of this scenario, or are there pitfalls ?
I would think redundancy would be payable but I'm no expert on this. The position would need to be redundant so if they made her redundant and she didn't want to go the self employed route they shouldn't then re-employ someone else as it would prove the position wasn't redundant. If she doesn't cover her wages now, I wonder how interested she would be in renting a chair (I think thats normally about £100 per week) as she may be out of pocket herself!
They should probably join the Federation of Hairdressers (I think thats what they are called) as they have an hmrc agreed contract for 'rent a chair'.
Thanks for info, will checkout Federation of Hairdressers. The salon is in a small country town, they were thinking of less rental than that of £50 per week. I am waiting for some info takings for this hairdresser, so that I can prepare some figures re tax etc, based on the last year. The angle is that the owners feel that she needs a bit of enthusiasm, and if she were be able to make money for herself, it may just be what she needs. Once again many thanks.
Do they dock her pay when shes is off sick??? Surely if they do is that not an incentive to get back to work or she'll be loosing money???
A previous company I worked for we had one that was always off sick, so we docked his pay etc according to the correct rules from hmrc. He certainly moaned!
Yes pay is docked when she is sick. This is a small salon, 2 owners, both working in salon, and this young lady in question. Even though she is not fully covering her wage. there are days when it causes a problem with her booked clients, and she phones in sick. Mind you this a problem all over, not just here. Another debate ! lol
All I can do is gather the info and present it to the owners for their descision.
