Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what steps his Department is taking to ensure that salons operating rent-a-chair arrangements comply with employment status law where working practices may indicate worker or employee status.

While the Secretary of State has not held specific meetings with representatives of the Salon Employers Association, this Department regularly engages with hair salons on a range of issues such as employment status and compliance, including through Personal Care Roundtables which I chair.

The Government recognises the complexity of the current employment status framework. Bogus self‑employment is unacceptable, and employers should not deny individuals their employment rights by incorrectly classifying them as self‑employed. Responsibility for determining employment status rests on the facts of each case, and compliance activity is led by HMRC. Where operated correctly, rent‑a‑chair models are a legitimate and long‑standing business practice.

HMRC does not consider trends in business numbers and employed/self-employed numbers in the sector to be unexpected. If a business disaggregates, as in the rent-a-chair model, the number of businesses will increase but the number of employees may increase, decrease or not change at all depending on how the business disaggregates.

However, we recognise that under the current framework, many workers may find it difficult to know either what protections they are owed or how to comply with legal obligations; this is why, through collaboration with the hair industry, Government published dedicated guidance for hair and beauty businesses to help the latter better understand their employment status for tax purposes: Check employment status if you work in hair and beauty - GOV.UK.. This Government is also committed to consulting on employment status.