LEGAL DOCUMENTS SALON OWNERS NEED TO HAVE IN PLACE

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Posted February 24, 2020

No-one wants to be thinking about the worst things that can happen in business, but salon owners who don’t are the ones who get burnt. You absolutely have to consider all the things that could go wrong when setting up your salon, and make sure that you have documents and policies in place to protect you if the worst does happen.

We have seen it time and time again, where salon owners have failed to adequately and legally protect themselves, which often results in a huge amount of heartache. HABA offers members a complete suite of documents, written by our partners at Ai Group to the strictest standards and the absolute letter of the law, to ensure that salon owners are protected. Here are the things you need to have in place to make sure you’re legally protected in business.

1. Business Structure.

Whether you’re operating as a sole trader, an incorporated company, a partnership or as a rent-a-chair operator – you need to get your structure right. Not only does this significantly affect your tax, but each type of business has different responsibilities and obligations attached to it. If you’re unsure about how to structure your business, speak to a business advisor, financial advisor or your accountant – they will be able to help you determine what will be best for you moving forward.

2. Staff Contracts

This is another key system of documents and need to be tailored to your staff, whether they’re full time, permanent part time, casual or apprentices – you need to have a contract created and signed for each member of your team. Each level of employment details different entitlements and obligations, both on the part of the employee and on the part of the salon owner, and only by completing these contracts are these conditions highlighted and formalised, and you are protected from any kind of claims moving forward.

HABA Members can download a range of different staff contracts, written by our team of industrial relations experts to cover every letter of the law, here.

3. Time and Wage Records including correct wage rates

We understand that the Hair and Beauty Award 2010 is a complex document – that’s why we are proposing that it be re-written in plain language so that it is easier to understand for salon owners. Additionally, wage rates in our industry change very regularly and can be quite complex to calculate for the different kinds of staff and agreements that occur in our industry. That’s why we calculate our wage rates sheets again each time there is a change in the industry award – so that any of HABA’s calculations cover EVERYTHING that salon owners need to pay and so salon owners know that they are paying EXACTLY the right amount every time with no room for error. By making sure that your team fill in time sheets you ensure that you are paying them for exactly what they are entitled to; and by keeping wage records yourself, you are protecting yourself from accusations of underpayment (which has been a real hot-button topic in Australia of late). Both of these documents are key to ensuring that you are covered in the instance of any kind of claim from your team.

HABA Members can download the latest and most accurate wage rates for the hair and beauty industry here.

4. Policies and Procedures Manual

We know we bang on and on about policies and procedures manuals, but they really are the foundation of your salon. They set out the expectations you have for your team and the guidelines under which they work, ensuring that everyone knows what’s expected of them, and that you have a course of action in the instance those expectations aren’t met.

5. Work Health + Safety Documents

These are some of the most important things to have sorted for your salon. From incident reports to induction checklists and an audit checklist, you need to be on top of your workplace health and safety from day dot of your business. This is a key area in the hair and beauty industry where salon owners get it wrong – without these documents, spurious claims can run rampant and your business could be at serious risk. You can find a complete list of waiver forms and Workplace Health and Safety Documents here.

Getting your legal documents in order is the best thing you can do to protect your salon. It’s not easy, but the team at HABA are here to help. We work with the team from Ai Group to ensure that all our documentation is written, read and reviewed by their team of in-house industrial relations specialists and covers absolutely everything that salon owners need. HABA members benefit from having these documents on hand, and as always, our team of professional advisors are only a phone call away and happy to help with any questions you may have. We look forward to being at your service.