Salons and barbershops must understand and comply with new employment laws following two recent court cases and fresh legislation.
This blog post covers:
- Getting legal advice
- Keeping detailed records of working hours
- New employees: day-one rights to written terms and conditions
- Holiday pay calculations
- Off-payroll working – new rules
A recent ruling in the European Court of Justice has introduced stricter rules for recording the number of hours your employees work.
You must now keep an accurate record of the hours your employee works every day including any overtime hours.
This new ruling will still apply post-Brexit.
From April 2020, a new employee must be given a written statement that includes all the terms and conditions of their job on the first day of their employment.
NHF/NBF Members can use free contracts and staff handbooks which cover this new legal requirement.
A recent ruling in the Court of Appeal has changed the way that employers must work out holiday pay in some cases.
The ruling relates to employees who volunteer to work overtime on a regular and ongoing basis.
The new ruling states that payments for regular overtime must be taken into account when calculating holiday pay.
New off-payroll working rules will apply from April 2020. However, it’s unlikely that this will affect salons or barbershops.
Off-payroll workers are not paid via a company’s PAYE system. For example, they could be freelancers or consultants (not self-employed) who are normally hired for a set amount of time or to complete a particular project.
The new rules apply to off-payroll workers who offer their services via a personal service company (PSC). This is a limited company for one person. From April 2020, companies who receive services from off-payroll workers will be responsible for ensuring tax rules in relation to off-payroll workers are complied with. The aim is to reduce tax avoidance.
• Always get legal advice if you are unsure about any aspect of employment law.
• You now need to keep detailed records of the hours your employees work every day.
• Employees are now entitled to written details about their terms and conditions of employment from the day they start work with you. Members can use the NHF/NBF's free contracts and handbooks to cover this.
• Regular, ongoing overtime must now be included in holiday pay calculations.
• New off-payroll rules have come into force – but these are unlikely to affect salons and barbershops.
New holiday pay calculations
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