Hairdressing - Poorly paid, but above board?

Lovelyjoolz

ianianian wrote: »

As you’ve mentioned, it sounds like another salon or self-employmentis the future. We’ve discussed this, but it sounds like moving to another salonis a cardinal sin in hairdressing.

This is rubbish! If the salon owner has told her this then it's just a tactic to keep her staff. Hairdressers are notorious for moving salons, often without notice. I see this all the time because I used to be a hairdresser. I'm now a Finance Director, but I do the accounts for a few salon owners and mobile hairdresser friends. Unfortunately, hairdressing has always been poorly paid, especially in the little independant salons.

Ulitmately, she'll make the most money working for herself, either mobile or renting a chair or owning a salon. Opening a new salon right now is not a bad idea, IF she opens in an area where there aren't already half a dozen salons. Recent economic statistics have shown that despite the recession, luxury purchases like hair and beauty have gone UP. It's called the 'Lipstick effect'. But any new business venture is risky. At any time.

She might be better off going and talking to a big salon. Toni & Guy pay reasonably well. Their juniors/trainees are on £6.50p/hr even when they are under 18. But they do tend to like them young so that they can train them in their own 'Acadamy'. Tell her to go and have a chat with one of the better salons in her area. If she's good, I'm sure they will snap her up.

Also, has she thought about adding some more strings to her bow? Night courses in beauty - make-up, facials, massage - nails especially are a real money spinner - could help her find a better paid job if she is multi-skilled.

Dunroamin

I know this is going to sound rude but I can't think of any other way of asking it. Are you sure she's any good at her job if she's working full time and she only gets £10 - £30 per week in tips?

Is the salon very quiet or in a very run down area?

V_Chic_Chick

If she is working 43 hours a week on £6.08ph (min wage) then she should be earning (gross) £261.44pw and £13594.88pa.

The personal allowance in 2011-12 was £7,475, so she is only being taxed at 20% on £6119.88. Therefore, after income tax, she should be receiving £12,370.90pa or £237.90pw

National Insurance is 12% on any earnings between £146 and £817pw. Therefore, she should be paying £11.02 in NI each week.

Overall, this should leave her with £226.88pw take home pay (assuming she hasn't joined a company pension or a salary sacrifice scheme such as the cycle to work one).

This means that she is being paid less than NMW, and that has been the case for some time. She is also legally entitled to a 20 minute break if she works 6 or more hours in a shift. She must be allowed to leave the employers premises during this time - being forced to stand around and wait for customers in the salon doesn't (as I understand it) count as a break.

If the employer hasn't been paying NI, then it could affect her entitlement to state benefits and pension. I'm not sure what the practical effect of an employer not paying tax is - although if you have been on the wrong tax code and have overpaid tax then you won't be able to claim a rebate at the end of the year.

If I were her, I'd get the hell out of there asap. She should also be looking at getting the underpayments back from her employer, possibly via an employment tribunal. It would be sensible to sit down with her and work out how much she is owed, to show that it is worth the time and effort. The Pay and Work Rights Helpline / ACAS helpline should be able to help.

PS get her to join a union when she gets her new job - they can be very helpful, and in my experience the very mention of a union can make employers toe the legal line rather more carefully!

cashbackproblems

She can aim to set up her own salon in the near future plenty of empty high street shops with cheap rents currently going.

My 2 friends opened a mens barber in a busy area and are making a profit each of 3k per month all cash in hand!