Hairdresser Rent-A-Chair Agreement
A Rent-A-Chair Agreement is an arrangement between a salon and a self-employed hairdresser, whereby the salon allows for the hairdresser to use the salon’s equipment and to operate within the salon’s premises.
4.3 (9 reviews)
Last updated December 19, 2024
Under 10 minutes
Suitable for Australia
Written by
Edwin Montoya Zorrilla
Reviewed by
Damin Murdock
Document Overview
Under a Rent-A-Chair Agreement, the hiring party retains the title as an independent contractor and is not treated as an employee of the salon. As such, the hiring party is not entitled to receive any employment benefits that would arise from a traditional employment contract with the salon.
Is the hairdresser an employee or a contractor?
The implications of treating an employee as an independent contractor so as to avoid paying for employment benefits faces serious ramifications and is referred to as a sham contracting arrangement under the Fair Work Act 2009. The sham contracting arrangement provisions of the Fair Work Act 2009 provide that an employer cannot misrepresent an employment relationship as an independent contracting arrangement, threaten an employee into such an arrangement and knowingly make false statements to influence an employee to become an independent contractor. Serious penalties can apply. This agreement assumes that the hairdresser is a contractor and sets out a commercial relationship consistent with that assumption. However, a court may consider certain treatment of a hairdresser to overturn that assumption, regardless of what the agreement says. If you are unsure about whether to classify someone as an employee or contractor, seek legal advice.
The Legal Risk Score of a Hairdresser Rent-A-Chair Agreement Template
Our legal team have marked this document as low risk considering:
- The agreement does not offer exclusive possession of the premises to the licensee, which means they must share the space potentially affecting their business operations and privacy.
- The licensor retains the right to adjust the terms regarding additional days or hours of operation, which could limit the licensee's ability to expand or adjust their business hours as needed.
- The licensee is responsible for all expenses and insurances related to their business, which could lead to unforeseen financial burdens if not carefully managed.
Hairdresser Rent-A-Chair Agreement Checklist
Complete your free Hairdresser Rent-A-Chair Agreement with our checklist
Secure Written Consent for Changes
Ensure any modifications to the agreement, particularly those related to days and hours of operation or financial terms, are recorded in writing and signed by both parties.
Compliance with Insurance and Legal Requirements
The licensee must secure all necessary insurances and comply with all relevant laws and regulations to mitigate risks and legal liabilities.
Proper Notice for Termination
Adhere to the specified protocols for giving notice should either party decide to terminate the agreement, ensuring that all communications are documented in writing.
Regular Review of Agreement Terms
Periodically review the terms of the agreement to ensure continued compliance and relevance to the current operational and business environment.
What does a Rent-A-Chair Agreement cover?
- The term of the arrangement.
- The rights and obligations of the salon and the independent contractor.
- Information regarding what the independent contractor is permitted to use within the salon for the duration of the agreement.
- The independent contractor’s contribution to the salon’s utilities.
- The payment arrangement for the payment of rent by the independent contractor.
Further information:
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