Hairdresser Rent A Chair Agreement

What is a Hairdresser Rent A Chair Agreement?

A Hairdresser Rent A Chair Agreement is a contract to rent a chair in a salon or barber shop to a freelancer who works for themself.

The freelancer is self-employed and runs their own business. As an independent contractor, they have their own clients, set their own hours and provide their own equipment. They pay a licence Fee to the salon to use part of the premises – the spare chair!

Who can use this Hairdresser Rent A Chair Agreement?

• Salon Owners
• Barber Shop Owners
• Hairdressers
• Barbers
• Beauty salons
• Nail salons
• Tattoo studios
• Laser Hair Removal Salons
• Eyebrow and Lash Bars
• Body Piercing Studios

Do I need a contract to rent a chair?

Yes, we recommend you use a proper contract if renting out a chair.

It’s essential to manage a hairdressing rent a chair arrangement properly so that you protect your salon, your clients and your reputation.

Setting out clear guidelines in a contract will make things easier for everyone.

What does our Hairdresser Rent A Chair Agreement template cover?

Our Hairdresser Rent A Chair Agreement template covers everything you need:

• Licence Fees – choose a fixed fee, a percentage of takings, or a combination of both
• Bond – a security deposit
• Term of Agreement – e.g. 12 months
• Permitted Use – the services they are allowed to carry out at your salon
• Access and Hours of Work – can they work whenever they want, or only during your salon opening hours?
• Signage – rules for signage
• Insurance – what insurance do you require the renter to have and maintain?
• Operating Expenses – are charges for cleaning, electricity and other utilities included?
• Responsibilities – use of the premises and associated obligations
• Inclusions – what does the ‘chair’ include?
• Termination – how either party can terminate the agreement
• Dispute Resolution – process to deal with disputes

Other names for this contract

• Rent-A-Chair Agreement
• Salon Licence Agreement
• Hair Salon Booth Rental Agreement
• Barber Shop Chair Rental Agreement

How much does it cost to rent a chair in a salon or barber shop?

There a few different ways you can charge for renting a chair:

1. Fixed Rent – the stylist pays a set amount per day/week/month
2. Percentage Commission – the salon owner takes a cut of the stylist’s total revenue from clients (usually around 40-60%)
3. Combination – the salon charges both fixed rent AND a percentage of revenue from the stylist.

We have included all of these options in our template. You just need to choose the one you want to use.

The actual amount you charge depends on what you negotiate and what both parties consider to be a fair amount.

How do payments get processed?

It’s best practice for a freelancer to have their own payment facilities (such as a Square Card Reader or EFTPOS machine).

However, some salons agree to take payments on behalf of the freelancer and then reimburse them each week. If you do this, make sure you keep very accurate records!

Differences between an employee and a contractor

There’s a lot at play which is why it’s important to have an agreement in place.

Independent contractors generally:

• work for themselves and are their own boss
• are free to accept or refuse work
• control their own working times
• provide their own tools and equipment
• have no guarantee of future work

Employees generally:

• work in someone else’s business
• are subject to controls on how, where and when they do their work
• are paid a wage
• receive employee entitlements, such as sick and annual leave
• have the expectation of ongoing work

Any other requirements?

As an Independent Contractor, they need to have their own ABN and they’re responsible for managing their own tax and insurance.

Want more information on employees vs contractors?

For more information, visit the Fair Work Ombudsman. If you’re an employer, head to the ATO’s website to learn more about the tax and super obligations for employees and contractors and the differences between employees and contractors.

What is sham contracting?

Working on a nod and a handshake can end in disaster. Our Hairdresser Rent A Chair Agreement protects you from this headache.

Some dodgy employers create sham contracting arrangements. They’re trying to disguise an employment relationship as an independent contracting arrangement. This is usually done to avoid paying employee entitlements. Even if you make an innocent mistake, you can still be fined.

If you’re convicted of sham contracting, you could be hit with a fine of up to $12,600 as well as a back-payment of wages and entitlements.

Our Hairdresser Rent A Chair Agreement template makes it clear you and your contractor are not employer and employee. You can confidently engage a freelancer and move forward with peace of mind.