Please could you advise on a self-employed contract

[nailzz]

Hello

I am going to be opening a nail salon soon and was hoping that you would be able to advise me on the contract I need for someone who will be working on a self employment basis. I have searched the site and internet but there are a few things I am not sure of.

Firstly I have telephoned the inland revenue and they advise that it is ok for this person to be self employed.

These are the areas I need advice on

1. I want to put in the contract that she must not set up in competition alone or jointly within a 1 mile (could put that down to half a mile) radius within 1 year of terminating the contract.

2. Any clients that she personally brings in will be her clients and upon leaving they are free to keep those client records - these will be in their possession throughout. But clients whom I bring in through the salons own advertising and walk ins will remain the salons clients

The set up is that she can bring in her own clients in as much as they like - there will always be a spare desk there for her use. And if we are busy with our own salon clients and any of our own clients want their nails done then she can also treat them. It is these latter clients which I want the salon to keep.

The clients will all pay her in full and then I will invoice her for our percentage. I am wondering if this is going to have a bearing on the salon clients being ours or not.

Just another thing I am not totally sure of - will she have her own business identity within the salon - have separate business cards etc or will she adopt our business name? I am assuming she will have her own identity. I will be advising her that she needs to work at getting her own clients through her own means.

We will be supplying every single piece of equipment and products - down to pads, cuticle tools - basically everything. Am going to have to buy a CND lamp for her to use as well. She is not in a position to purchase any of this. Hence this is why I want certain conditions put in the contract to protect myself. I am thinking of maybe insisting that she buys basic tools and things like disposible and acetone etc.

We are just starting out and there are two of us, plus this lady who will be self employed. I am doing this to give her a helping hand (we dont even have any clients yet for ourselves even). I want everything clear in the contract and also have some protection for us.

I am also wondering if by taking a percentage this is a contract of service rather than a rental contract.

If there are any other factors on contracts that you can let me know I would be very grateful.

I would really appreciate if someone can give me some advice.

Many thanks xxxx

 

[footwoman]

Hi nailzz,
I would strongly advise that you get the help of a solicitor on this one - and you need one who specialises in Contract Law - to make sure it is all OK. It may seem a lot of money to fork out but it will make sure that everyone knows where they are.

Clauses that try to prevent them setting up in competition aren't worth the paper they are written on and are very difficult to enforce. This sort of clause could also come under what is know as "Unfair terms" in law.

You also talk about providing all the equipment, products etc. and this is where it becomes confusing, as this is what an employer does. Normally those who are self-employed provide their own equipment, tools, uniforms etc.

That's why i am saying you really need legal advice on this. Sadly, not all staffing issues can be resolved amicably ( as we have seen from the many postings on this forum) so you really need to "have all your ducks in a row" with this one, just in case the arrangement doesn't work out.

Good Luck

 

[nailzz]

Thanks for your advice which I have taken on board.

I have telephoned the inland revenue and discussed that she will be using our products and they say that is fine as overall it meets the self employed criteria.

Any further advice would be appreciated - getting a contract lawyer will most likely be cost prohibited and the other option would not to do this arrangement at all - which will be disappointing for the person concerned. But if I can pen something basic together I will.

thanks

xxxxxx

 

[footwoman]

Hi nailzz,
Well if you have checked it out with IR and they say that she's classed as self-employed that's fine, but I found this,

Work out if you're employed or self-employed : Directgov - Money, tax and benefits

which seems a bit confusing. But there again it also says there is no actual definition of "self-employed" .....

 

[nailzz]

Thanks for that footwoman. I checked the link and she is more self employed than employed.

I have sat all day and composed a contract. Tried to keep it as simple as possible but include all the points.

If anyone has any advice I would really appreciate it as I have done my best on this but am not sure it is totally correct....

thanks