smallbusiness.co.uk: Helping your business think big

Email a Friend

We own a beauty salon and want to employ a self-employed nail technician, on a basis of splitting the money that she earns. How do we go about this and what do we need to put in her contract?

If the individual is truly self-employed you and she would be entering into a commercial contract. Providing both parties agree, it can contain whatever legal terms you wish, within reason. Consult a solicitor specialising in this field, as to go ahead without a written, comprehensive and signed contract would be a recipe for disaster.

Employment Tribunals will not just look at the paperwork, they will also consider the actual relationship at the time they consider the claim from the claimant. Relationships do change over time, and whilst the Tribunal might well accept that at the start it was a true contractor/sub-contractor relationship, some years later that might not be the case.

You need advice, therefore, on what constitutes a commercial contract; a worker’s contract under which a worker contracts to perform personally some task or duty and that of an employee. You would then need to monitor the relationship on an ongoing basis and take steps as appropriate to reinforce the desired one. It may in fact be simpler to employ her in the first place and keep all the profits.

Further reading on hiring staff

  1. How to hire staff if you're a small business

See also: Hiring self-employed sales people

Previous article

Train staff in core skills

Next article

How to reconnect young people and organisations

Post a comment

Related

News | Law

Proposed law champions the self-employed

News | Management

Getting the right staff

News | Management

Make sure you keep your best staff

News | Opportunities

Taxing troubles for the self-employed

Small Business Offers

  • Apprenticeships - The University of Work

    Apprentices study your business in your business. By learning your way of working they can help your company to grow. Kick-start the process today. 

  • Compare business insurance quotes

    Tailor your policy, compare quotes and buy in minutes! Up to 50% No Claims Discount. Compare quotes or call 0845-0723340 today.

  • Making a connection

    A free small business guide to communication technology, brought to you by Vonage and SmallBusiness.co.uk.

  • Want to process payments on your website?

    Accept credit cards online via our secure, stable and easy gateway. Sign up now for summer savings – no setup fee, no monthly fees until September.

  • The smarter way to get cash flowing

    Running a business can be challenging so it’s important to ensure that you choose a funding solution that keeps you firmly in control while providing the flexibility to grow.

  • Content Choices from SmallBusiness

    Receive regular guides, whitepapers and advice to help you start and run a successful business.

More from Small Business

Starting a Business
How to get to grips with purchase orders 

How to get to grips with purchase orders 

Lucy Fox, general manager of cloud solutions at Exact, puts the management of purchase orders...  

Financing a Business
How small businesses can manage their annual return 

How small businesses can manage their annual return 

Here, Henry Catchpole gives some top tips on keeping your records management simple and getting...  

News
Majority of small companies do not last beyond five years 

Majority of small companies do not last beyond five years 

Business survival rates have fallen significantly since the financial crisis, research finds. ...  

Blog
Why starting a business from your bedroom beats Silicon Roundabout

Why starting a business from your bedroom beats Silicon Roundabout

Here, Irfon Watkins argues against the trend to centralise start-up activity in certain locations. ...