e-Sign with Lawpath

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.

starstarstarstarstar_half

4.3 (9 reviews)

alarm_on

Last updated December 19, 2024

edit

Under 10 minutes

location_on

Suitable for Australia

Get 1st document free

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.
Get started

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.

Get started

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:

It's never been so easy

laptop_mac

Sign-up to a free Lawpath account

Get started and we’ll take care of you. It’s that easy.

gavel
person_outline

Collaborate with e-Sign and Sharing

Having access to your legal documents has never been easier. You can request e-signature, share the document and download for an efficient collaboration.

Create unlimited legal documents and eSignatures for only $39/month.

Upgrade to a Lawpath legal plan to boost your new business.

View plans & pricing
trust-mark

Here's what people say about Lawpath’s Hairdresser Rent-A-Chair Agreement

Reviews are managed by BazaarVoice and comply with the BazaarVoice Authenticity Policy. Reviews are independently verified by BazaarVoice and detail our customers' real experiences.

Looking for more documents?

Browse all legal documents