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 

If you’re not sure about any aspect of these new rules, NHF/NBF Members can call our friendly membership team on 01234 831965. Members can also access our 24/7 legal helpline for free expert advice on HR issues, employment law, tax, payroll, and health and safety. Find out more:

Hair salons and barbershops
Beauty salons 

 

Beauty therapist

Keeping detailed records of working hours

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.

NHF/NBF Members can login to read the full version of this blog post for more detailed information.

Not yet a Member? Join us for less than 75p a day to get a wide range of benefits including access to our friendly membership team, free 24/7 legal advice, in-depth business guides and fact sheets, and valuable discounts on business essentials including insurance.

 

Employment contract new salon recruit

Day-one right to a written statement of employment details

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.

How the NHF/NBF can help you with employment

NHF/NBF Members can download our free employment contracts and apprenticeship agreementsstaff handbooks, a job application form, and an example of a job description. 

 

New holiday pay calculations

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.

Holiday enititlement

Off-payroll working rules

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.

Checklist

• 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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