Katie Godfrey is an award-winning entrepreneur and beauty business owner, and one of our Salon Gold mentors. Katie is passionate about helping salon owners avoid the potential pitfalls of the self-employed model – read on for her words of advice…
Those of you that have worked with me or been following me for a while will know I have been banging on about this subject for years, but I have to make as many salon/business owners aware as possible, so this doesn’t happen to them.
I am hearing more and more about poor salon owners being taken to court for having ‘employees in disguise’, then having to pay back thousands of pounds to those that were self-employed within their salon. You have a duty to make sure you are doing this correctly as a business owner.
Why is this happening?
Lots of salons have the self-employed model within their business, which is totally fine if it’s done correctly. If it’s not done correctly (which realistically is most of the time) there are huge repercussions.
Why would you want to work so hard for your salon for something like this to happen? So, I urge you to do the research and make sure you are doing it correctly within your business.
You want to make sure if you have a self-employed model that you are:
- Letting the therapists come & go as they please – they set their own hours.
- They can carry out treatments on any day of the week.
- Take their own payments.
- Wear their own uniforms. (Not yours)
- Have their own pricing.
- Mange their own columns.
- Not calling them ‘your team’ or holding team meetings.
The list goes on….
But in short:
THEY HAVE TO BE RUNNING THEIR OWN BUSINESS WITHIN YOURS.
You are basically just a landlord to them.
If you’re currently not doing this, you are at real risk of having ‘employees in disguise’. Trust me, you don’t want to be messing around with that!
If you’re a salon owner reading this and not sure if you’re doing the right thing then feel free to reach out.
If you’re a self-employed therapist & confused about your rights, also feel free to reach out to me.
It’s been my goal for years to spread awareness of the facts of this so everyone is doing business correctly.
Katie Godfrey
@kg_katiegodfrey
www.kgbusinessmentor.com