The salon industry is facing challenging times, and with it comes the need for salon owners to adapt to the changes that are on the horizon in employment law. My chat with Rebecca Day sheds light on the important, and often misunderstood, topic of disguised employment. It's a trap many salon owners fall into as they try to find ways to work around the complexities of regulation and trying to build a successful team.

We discuss the upcoming changes in legislation that will impact how salons operate, particularly regarding employee rights and the classification of self-employed workers. Rebecca emphasises the importance of understanding the practical implications of employment status, urging salon owners to reflect on their business practices and ensure they align with legal requirements. We talk through HMRC's recent update of introducing a specific Hair & Beauty CEST form (Check Employment Status for Tax) which will help both businesses and the self employed person/employee make an informed choice on proceeding in that relationship.

This episode serves as a wake-up call, highlighting the need for salon owners to be proactive in their HR strategies. We also touch on the emotional aspects of managing a team, and discussing the fact that behind every HR challenge are real people whose livelihoods, homes and families depend on these decisions.

The dual topics of today's episode will create a great resource for any employers, self employed solo professionals and employees to make sure they're all on the same page and on the right side of the legislation. No one wants to end up in Employment Tribunal and Rebecca's advice helps all parties understand the best pathway.

Takeaways:

• The concept of disguised employment is increasingly relevant for salon owners as legislation evolves, making it important to understand the differences between self-employment and employment.
• Understanding the practical implications of disguised employment can save salon owners from significant financial liabilities related to taxes and employee rights claims.
• To manage the challenges of HR in the salon industry, salon owners should maintain robust recruitment processes and clear service agreements with self-employed professionals.
• As new employment laws come into effect, salon owners must adapt their HR practices to ensure compliance, particularly regarding employee rights and flexible working arrangements.
• The importance of defining clear roles and expectations to avoid misunderstandings between salon owners and self-employed workers, particularly in client management and service delivery.
• Maintaining open communication and understanding the legalities surrounding self-employment can help salon owners build a positive workplace environment and mitigate potential disputes.

Links referenced in this episode:

• dayhrconsultants.com
• salonpreneurmagazine.co.uk
• sue-davies.com

Companies mentioned in this episode:

• Day HR Consultants
• Salonpreneur
• Estee Lauder
• Mac
• Jo Malone
• Bobby Brown
• Springboard