Human Resources Q&A Forum

Post: Verbal agreements

Q) I’m self-employed and when I started at this salon there was no contract to sign. There was a verbal agreement of a 50/50 split of my takings with the owner and she agreed to provide the products. Now she wants to change it to 60/40 and make us buy our own products. Where do I stand?

Answered by Carolyn Mumby, Employment Law Essentials,

You clearly regard yourself as self-employed and no doubt you are paying your own tax and national insurance direct to HMRC. If that is the case, this person is simply trying to renegotiate the terms on which they allow you to utilise a part of their premises to conduct your business.

I am an employment lawyer so this is not my area of expertise. You need to speak with a commercial lawyer, but here are my first thoughts as someone who has studied law for 20 years and so it should get you started:

If there is no evidence of you having agreed a minimum term during which you may work from the premises, and there is no evidence of a minimum term for the ‘50/50 split plus products supplied’ arrangement, then there may be nothing stopping this person from renegotiating terms or asking you to leave. Without the owner’s permission to stay, or a legal right to stay on the premises, it sounds to me as though you are trespassing.


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