Hiring Staff this financial year – What Every Salon Owner Needs to Know

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Posted September 3, 2025

As Australia’s hair and beauty industry continues to evolve, salon owners are navigating more than just trends and talent. Hiring this financial year means staying on top of your legal obligations as an employer because getting it wrong can be costly.

At HABA, we speak with salon owners every day who want to do the right thing, but aren’t always sure where to start. This guide outlines the essential employment law basics you need to know when hiring staff now and how HABA can support you every step of the way.

1. Understand Your Employer Obligations

Before you post your next job ad, it’s crucial to understand that every employee in Australia is protected by the National Employment Standards (NES). These minimum entitlements apply to all staff, regardless of hours worked or pay rate.

You’ll also need to comply with the Hair and Beauty Industry Award 2020, which governs minimum wages, classifications, allowances, penalty rates, hours of work, and more. This Award is legally enforceable, and non-compliance can lead to Fair Work claims or underpayment disputes.

Not sure what applies to your salon? Ask HABA.

2. Choose the Right Type of Employment

Hiring a new team member? You need to be clear on how they’ll be engaged. Your options typically include:

• Full-time – ongoing role, 38 hours/week
• Part-time – ongoing role, fewer than 38 hours/week with regular hours
• Casual – irregular hours, no guaranteed shifts, paid a higher rate

Each type has different entitlements, so misclassifying staff (especially casuals) can have serious implications for leave, notice periods, and pay.

Learn more via the Fair Work Ombudsman’s guide to hiring employees.

3. Use a Compliant Employment Contract

It’s not enough to agree on hours and rate verbally. Every employee should have a written contract that clearly sets out:

• Position title and classification under the Award
• Employment type (e.g. part-time, casual)
• Hours and location of work
• Pay rate, including allowances and penalties
• Termination and notice provisions
• Obligations relating to confidentiality, conduct, and policies

HABA members can access customisable employment contract templates to make this process simple and compliant.

4. Correctly Classify Your Employees

The Hair and Beauty Award outlines classification levels from 1 to 8, based on skill, training, and responsibilities.

Misclassifying an employee (e.g. paying a Level 2 as a Level 1) may result in backpay claims and penalties.

Example:
A senior stylist performing chemical services, supervising staff and independently managing appointments is unlikely to be a Level 2. They may fall under Level 4 or higher, depending on experience.

If you’re unsure where a staff member fits, Ask HABA for Award interpretation.

5. Don’t Forget the Onboarding Essentials

Once you’ve selected the right person, onboarding them properly protects both your business and your new employee. You’ll need:

• Signed employment contract
• Tax File Number declaration
• Superannuation standard choice form
• Fair Work Information Statement
• HABA’s downloadable New Employee Checklist (for members)
• Access to your workplace policies (more on that below)

Good onboarding isn’t just paperwork, it’s the first step in a successful working relationship.

6. Set Expectations with Workplace Policies

Hiring someone into a business with no clear policies is like driving without a roadmap.

At a minimum, every salon should have policies on:

• Code of conduct
• Hygiene and personal presentation
• Rostering and leave requests
• Performance and disciplinary procedures
• Social media and mobile phone use

HABA members have access to ready-made policy templates that can be tailored to suit your team, your tone and your business.

7. Common Hiring Mistakes to Avoid

Too often, we see employers caught out by:

• Using outdated or no employment contracts
• Assuming casuals have no entitlements
• Ignoring classification requirements
• Failing to provide mandatory onboarding documents
• Not keeping written records of offers, warnings, or discussions

Being proactive protects your business and your peace of mind.

Need Help? Ask HABA.

Hiring doesn’t need to be overwhelming but it does need to be done right.

HABA is here to support our members with:

• Award interpretation
• Customised contract templates
• HR documentation
• Unlimited phone and email advice
• Workplace policy support

We are the only federally registered employer association for the hair and beauty industry in Australia, and we’re proud to stand beside our members as they build stronger, more compliant businesses.

Not sure where to begin? Ask HABA today.

Contact our team: info@askhaba.com.au or call 02 9221 9911 #2

Explore Membership options: https://members.askhaba.com.au/store/memberships