SalonFocus Nov-Dec 2010

The ESSENTIAL magAZINE for Salon Owners

Regis joins NHF Dire straits

– rage over Rapex

CuttheVat exclusive survey Gift packs make a beautiful Xmas Lifestyle TV arrests

Nov/Dec 2010 | £3.50

distance relation between sash and corner flexible. size relation between sash and corner NOT flexible.

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Wavelength

congratulations NHF, members, readers...we are three years old.

You came to us with your stories and we reported It is hard to believe, I know, but the next issue of on them for the good of the entire membership.

SalonFocus will see the magazine enter its fourth year. We reported on scams and rip-offs, changes in employment law and competition triumphs and we In this short space of time SalonFocus has become campaigned on your behalf on issues such as VAT and a must-read publication – one of a kind, a magazine the national minimum wage. that is not afraid of tackling both complicated and I would like to thank all our readers, contributors, sometimes controversial issues. And all for one reason: NHF head office led by our publisher and secretary to help the people who count most – you. general Eileen Lawson, immediate past president This achievement would have been impossible without your support, your engagement and your Harry Walker, president Mark Coray and all communication with head office and with me. members of the National Executive Committee for their role in helping the SalonFocus team develop this SalonFocus is bigger than any one person or the team of people who produce it, however. exciting magazine.

The readership is what makes SalonFocus special.

I have had a fantastic time as editor. This is the most exciting, varied and dynamic, diverse SalonFocus’s readership sector I have had the good fortune to is diverse within the “ SalonFocus be involved with. market it serves. It is made is bigger I have helped lay the foundations, up of business people, than any one build the house, decorate and furnish it. artists and innovators.

But now it is someone else’s turn to add It is our perception person or some new flourishes. of your businesses, the team of I am delighted that your new editor your artistry and your will be Nic Paton, an award-winning needs that dictate the people who magazine’s content. journalist. I know he has produce it. The top-notch integrity and he will serve you well.

SalonFocus has readership is Nic has asked me to continue as become an integral part editorial consultant and as a contributor of the NHF, intertwined what makes to the news pages and Backwash (my with key policy issues such as the SalonFocus creation and implementation of Strategy favourite parts of the magazine) which special” I am delighted to accept. So please stay for the 21st Century, reporting on the in touch. issues that affect members every day of This is the last time I will be writing as editor, week, keeping you abreast of legal developments and however, so in keeping with SalonFocus’s third helping you with difficulties you encounter in your everyday working lives. birthday, I have just three final things to say.

I am sure it will continue to report on the Thank you from the bottom of my heart. challenges that face the NHF and the wider sector, I’ve had a blast. such as building upon hairdressing’s professionalism, I wish you all good health, wealth and happiness for sense of community and integrity, continuing to grow the year to come. in strength hand-in-hand with the Federation itself.

SalonFocus’s first issue kicked off with a report about how a marketing agency acting for npower tried to persuade thousands of salons to sign up with the utility company by falsely claiming to have a special affiliation deal with the NHF. We soon put a stop to that.

We reported on the controversial issue about Andrew Don whether a salon had the right to refuse employment Editor to a Muslim stylist who refused to remove her headscarf.

www.nhf.info

Nov/DEc 2010 SalonFoCUS PAGE 3

contents Our coNTRIBUTORS

PETER MOUNT is partner at Woodfines Solicitors.

p 22

p 28

Celebrity hairdresser Daniel Field is the co-founder and former chairman of Ark Environmental Foundation. He is considered the pioneer of organic and mineral hairdressing.

His salon is in Barnet, north London.

p 32

FEATURES

22 Lowdown on backwashes 24 Healthy business during sickness 26 Stay wise to stress 28-29 Security top tips 30 Keeping abreast of cash flow

INSPIRED

19-21 Beautiful Iconic from The Vanilla Rooms’ nominated entry for the 2010 British Hairdressing Awards

BEAUTY

13 Beauty spots 32 A gift at Xmas

REGULARS

03 Wavelength – SalonFocus celebrates three years 10 Movers & Groovers – NHF members excel at awards 16-17 Federation Focus – Coray and Curry take centre stage 18 Cutting Brief – your problems solved 33 Events – key dates for your diary 34 Backwash – you’ve got to laugh

PAGE 4 SalonFoCUS Nov/DEc 2010

Gillian Dowling works for Croner as employment technical consultant.

RODDY MACLEOD is a partner specialising in stress and harassment claims at law firm Weightmans LLP.

NEWS

05 Regis joins NHF 06 Lang seeks backwash innovation 08 Rapex uproar rages 09 Lower VAT registration threshold supported 10 Lifestyle – police probe 12 Flexi-working – take advice 13 Taxman gets tougher 14 Salons fail to heed licence obligations; European City Guide alive and kicking

SALONFOCUS IS PUBLISHED BY: National Hairdressers’ Federation, One Abbey Court, Fraser Road, Priory Business Park, Bedford MK44 3WH t: 0845 345 6500 t: 01234 831965 f: 01234 838875 e: sfenquiries@salonfocus.co.uk w: www.nhf.info

JACKIE LANG has been managing director of Regis UK since 2008.

She is responsible for 450 salons that include Regis’s UK branches and Sassoon salons in the UK, Germany and USA.

ANDY BECKINGHAM is business restructuring partner at BDO LLP.

Front Cover: Panache (nominated entry for the British Hairdressing Awards 2010) Hair: Joanne O’Neill Photographer: Jim Crone Styling: Aisling Farrinella Makeup: Irena Rogers

EDITOR Andrew Don e: sfeditor@salonfocus.co.uk EVENTS Tina Beaumont t: 0845 345 6500 e: tina.beaumont@nhf.info

AD SALES Mainline Media Ltd The Barn, Oakley Hay Lodge Business Park, Great Oakley, Northants NN18 9AS t: +44 (0) 1536 747333 f: +44 (0) 1536 746565 w: www.mainlinemedia.co.uk Advertising Sales Manager Tricia McDougall e: tricia.mcdougall@mainlinemedia. co.uk Advertising Production Manager Craig Barber e. craig.barber@mainlinemedia.co.uk DESIGN & PRODUCTION Quercus Eight t: 020 7655 0370 e: studio@quercuseight.co.uk

Wendy Nixon is business development manager at Habia.

Angela Bartlett is chairman of the British Association of Beauty Therapy & Cosmetology and the Confederation of International Beauty Therapy & Cosmetology.

PUBLISHER Eileen Lawson BSc FCIS FRSA e: eileen.lawson@nhf.info

While every care is taken in compiling this issue of SalonFocus including manuscripts and photographs submitted, we accept no responsibility for any losses or damage, whatever the cause. All information and prices contained in advertisements are accepted by the publishers in good faith as being correct at the time of going to press. Neither the advertisers nor the publishers accept any responsibility for any variations affecting price variations or availability after the publication has gone to press. No part of this publication may be reproduced in any form without the permission of the publisher, to whom application must first be made. The views expressed by contributors to SalonFocus are not necessarily those of the NHF, the publisher or its editor. © 2010 The National Hairdressers’ Federation.

Material for consideration in this section of the magazine should be submitted on CD-ROM as high resolution jpeg or tiff files to The Editor, SalonFocus. Submissions should be made on the understanding that the National Hairdressers’ Federation has the right to use the material in any part of the magazine and any of its other publications, promotions or website, free from any copyright restrictions, or appearance fees other than the issue of artistic and photographic credits where applicable. Please include salon name, photographer & stylist.

News

for today’s Salon owner

Bagged-

NHF lands uk’s biggest salon group The NHF has achieved what is arguably its biggest coup in years with the admittance of Regis International’s

411 UK salons into membership.

Regis International is a division of the Regis Corporation, the world’s largest owner, operator and franchiser of hair and product retail salons with more than 12,900 locations worldwide, more than 59,000 employees and sales of more than

Supercuts - one of Regis’s iconic brands

as a whole. I think some of the other big and medium-sized players will take another look at the NHF now we are involved. It’s all about the industry getting its voice across to government on issues such as the VAT challenges,” she said.

Eileen Lawson, NHF secretary general, said the challenges facing each of Regis’s local salons were the same as those that faced independent salons.

$2.4bn (£1.5bn).

The inclusion of the UK’s largest salon group, spanning several iconic brands including Supercuts, 184 branches, Regis, 157, Trade Secret, 16, HCUK, 24, Hair Express, 13, Sassoon Salons, 13 and Sassoon Academy, 4, is expected to be a precursor to other medium and large salon groups joining.

Jackie Lang, managing director, said she decided Regis should join because she felt it was important to link in to “the voice of the industry”.

The vehicle to voice the company’s views about legislative issues had not previously existed and membership would help individual Regis salons understand some of the broader issues that impacted the industry, she said.

Lang said Regis was exposed to so many different areas from property to IT so could bring in expertise to create greater understanding among members.

“And there’s feeling a responsibility to the sector as a whole. Adopting best practice is a two-way street. We want to give something back to the industry

www.nhf.info

“The significant benefit to Regis will be working with the NHF to influence government and education for better business opportunities, having input through the NHF on government consultations, European Union issues and joining the NHF as we strive to make our sector a more cohesive force to be reckoned with within UK plc.”

Lawson said having the country’s biggest salon group on board would undoubtedly increase the NHF’s influence. “The more salons we can claim in membership the bigger the club, the greater the ability to change things for the club’s benefit. We are in a game where big is powerful so size matters.”

regis’s us headquarters

Nov/DEc 2010 SalonFoCUS PAGE 5

News

Regis boss calls for

backwash innovation Regis UK managing director Jackie Lang has called for more innovation in

the backwash market.

She says backwash design has remained largely unchanged for many years apart from the massage chair.

She said she would like to see someone do for backwashes what Dyson did for vacuum cleaners – a fresh approach that includes ergonomic design and full adjustability.

“It would be wonderful to see some real innovation in this area,” she said.

Regis has 1,800 backwashes and includes one manufactured by REM for the disabled with a removable chair in every salon. This gives free access to wheelchair users and the disabled.

Palladium design’s lovebeam backwash distributed in the uk by albert EWAN design

PAGE 6 SalonFoCUS Nov/DEc 2010

Mark Coray, the new president of the NHF, who discussed the issue on Radio 4 earlier this year, said that when he refitted his own salon, Coray & Co, in Cardiff, he would look at backwashes with removable chairs.

Basil Long, senior legal consultant at the NHF’s Legal Lifeline, said salon owners should assess the options for washing disabled clients’ hair to avoid falling foul of the Disability Discrimination Act 1995.

They would need to consider whether the existing fixtures were already reasonably adjusted and whether adopting a policy of providing assistance to a disabled person to move them out of a chair into the backwash seat was suitable.

“Perhaps a reasonable adjustment would be to provide grab-rails to assist with this.”

He warned that making chairs removable would not be sufficient if the height of the sink was incorrect for the individual or if the sink area still could not be accessed because of a step.

• Turn to page 22 for Jackie Lang’s backwash feature.

Beware The risks of online procurement

Salon owners are reminded that if they purchase goods or equipment online for their salon they will not have any automatic right to the seven-day cooling off period that private individuals enjoy under the Distance Selling Regulations.

Nor will they have any statutory right to return the goods. They will only have a right to return the items if the terms and conditions of trading permit.

No right to return for repair or replacement usually exists if there is a minor fault – only if the item is so fundamentally damaged that it could not have been in the minds of the parties, but even then the right to reject would depend on the terms of business.

Whether or not the contract is being made “in the course of business” or as a consumer will be decided on the facts of the case and the understanding of the parties at the time.

Indicators that will help decide this is whether the items ordered are trade-quality, a substantial quantity, the supplier is generally trade-only or very specialist, or if the delivery is made to a business premises or ordered on an account.

The supplier might adopt good business practice and enable you to return items but this is not required by law.

The NHF’s Legal Lifeline advises members to ensure they know that they want the item when they click “buy” because to do so forms a contract for purchase and cannot be rescinded.

This is especially important to note when buying expensive equipment so go to a store or showroom first and try it out to make sure it is needed before going to an online outlet that might have it for a better price.

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News

chemical straightening sector

plunged into chaos

A raft of Rapex (Rapid Alert System for NonFood Products) alerts from the European Union’s Department of Consumer Affairs

has plunged the chemical hair-straightening/ de-frizzing sector into chaos.

The latest alerts were issued on a specific batch of Global Keratin, two Coppola Designer Hair Care Smoothing Therapy variants; and KeraStraight boxes

said posed “a chemical risk” because it contained a high level of formaldehyde (1.7% whereas the allowed limit is 0.2%).

This meant it did not comply with the Cosmetics Directive 76/768/EEC, the alert said.

containing 5 x 50 ml bottles of KeraStraight Larry solomon, president Brazilian Keratin David Rose, of keratin complex Treatment with finance director Banana Scent. of the company’s UK distributor, Global Rapex covers consumer products Keratin UK, said he had received an deemed dangerous. It enables the email from Martin Mosley, Global notifying authority – Ireland in the Keratin’s chief operating officer in the above cases – to inform other member US, to say the rogue batch had been states so they can take action they mistakenly sent to Ireland. Rose said deem necessary if the same product is three variants of the product were used available in their country. in the US – 4% formaldehyde, 2% and formaldehyde-free.

Christopher Flower, directorThe alerts for the two Coppola general of The Cosmetic, Toiletry & Designer Hair Care Smoothing Therapy Perfumery Association, said: “The variants – for Blonde Hair, and Natural fact that a product has been taken Keratin Smoothing Treatment resulted off the market in one country does in an order for US-based Keratin not automatically mean it may not be sold in other countries, although the Complex to withdraw them because authorities elsewhere would be unlikely they, too, posed “a chemical risk”. to ignore the action in the first member Larry Solomon, president of Keratin state and are likely to look out for the Complex, wrote a two-page statement product in question and take similar in which he took issue with the EU’s action.” testing procedures and said the Irish authorities and EU laboratories had Dermot Deegan Cosmetics, already stated they recognised the need distributor of the Global Keratin to develop new testing procedures. hair de-frizzing product, voluntarily withdrew Global Keratin with bar code Robert Shipton, chairman of Keratin 19200536813 which the Rapex alert Complex UK, said: “The technology we use encapsulates aldehydes so they never become formaldehyde.”

PAGE 8 SalonFoCUS Nov/DEc 2010

He said the company had commissioned an independent laboratory in a bid to contest the alert and hoped to resolve the dispute.

“KeraStraight said it had been in talks with the Irish Department of Health and its scientists to determine their testing criteria.

“The testing was undertaken on a particular batch which is no longer available – even prior to the findings being released.

The company said KeraStraight launched a new formula in May 2010 – the new KeraStraight Treatment with KS Complex, which had passed the EU vapour testing criteria.

“KeraStraight works hard to ensure its product complies with all EU health and safety regulations and will continue to keep our customers updated with any developments,” the company said.

The latest alerts come hard on the heels of the one issued for Marcia Teixeira Brazilian Keratin Treatment (SalonFocus Sept/Oct 2010), which M&M International, the owner, is continuing to fight.

Tracy Kollmer, responsible for distributor liaison at M&M, thanked SalonFocus for fair and accurate reporting. She said M&M continued to pursue a resolution that would lead to the Rapex alert on its brand being withdrawn. “We have been hard at work in the background reformulating treatments that are in compliance based on the EU directive as it is currently enforced. She said EC compliant product dossiers had been finalised, including safety assessments.

She said Biorius, its registered agent in the EU, attested the products were compliant.

Hair Clips VAT reminder

Salons are reminded that the standard rate of VAT rises from 17.5 per cent to 20 per cent from January 4.

HIV risk

Research from Occupational Medicine has found that male hairdressers, tailors and dressmakers have nine times the average risk of death from HIV infection, based on an analysis of 1.6m deaths over a 10-year period.

Well trained

City & Guilds figures reveal

vocational qualifications in hairdressing were awarded to 47,506 people from June 2009 to May 2010.

New loans source A new business,

FundingCircle.com has

launched, providing loans of up to £50,000 for small businesses. It claims it will undercut bank finance costs by 25%. Businesses need to have been trading for two years.

L’Oreal reports €1.67bn profit

L’Oreal posted interim pretax profit of €1.67bn (£1.36bn) ahead of analysts’ expectations. The company said the global cosmetics market rose 4% in the first half of the year. The professional division, which supplies salons, proved one of the stars.

Poverty alert

The NHF has expressed concern that many hairdressers who anticipate working into their most senior years risk poverty in their old age if the government presses ahead with plans to abolish the default retirement age. This is because they may not have given any thought to the possibility they may not be physically or mentally fit enough beyond the current default retirement age to continue in employment.

www.nhf.info

Survey supports lower Vat Threshold Members who replied to an NHF survey have overwhelmingly come out in favour of a reduction in the threshold at which businesses have to register for VAT or the removal of the threshold altogether.

The findings are particularly significant because such willingness among hairdressers to opt for a lower, or no, threshold could prove cash positive for the government if ministers accede to the NHF-led CuttheVAT campaign and lower the rate of VAT for hairdressing services. deputy prime ministeR nick clegG, A massive 83% of www.LibDems.org.uk respondents agreed the registration threshold should be lowered to facilitate a lower rate of VAT and 60% agreed the threshold should be removed altogether so that everyone is brought within the VAT system.

Treasury officials had asked the NHF to provide this kind of statistical information when secretary general Eileen Lawson and other officials were called to a meeting at the Treasury last year.

The NHF is now campaigning to lower the threshold but the Federation is saying the membership would be wiling for this to be brought into a Treasury proposal.

Lawson said: “This survey indicates the strength of feeling about the uneven playing field.”

Meanwhile, Federation members have highlighted the need to reduce the rate of VAT for hairdressing services on deputy prime minister Nick Clegg’s Your Freedom consultative website designed to form an important part of the government’s commitment to cutting red tape, repealing unnecessary laws and supporting civil liberties.

Two separate threads on the issue notched up a total of nearly 300 votes in favour at the last count.

The government says ideas, comments and ratings will directly inform its policymaking.

• Members who did not fill in the survey are still invited to do so. Please contact head office for your copy on 01234 831 965 or 0845 345 6500 or email enquiries@nhf.info

Cutthe

coversure launches motor policy Coversure, supplier of the NHFrecommended Salonsure policy for salon owners, has launched a new private car policy which it says is specifically designed to meet Federation members’ needs.

The insurance services company says it has already saved 35% for some clients on standard car premiums from Aviva, the company underwriting the scheme, thanks to a sophisticated rating system using credit scoring and other information from third party organisations.

Cover includes free European cover in most European Union countries, and legal expenses cover is automatically included up to £100,000.

NHF members should call the dedicated members line for a quotation on 0800 458 81 81.

• A study from insurance comparator SimplyBusiness.co.uk, called The Risk Report, has found that women-owned businesses are less risky, more financially sound and ultimately less likely to fail than their male-owned counterparts.

Jason Stockwood, chief executive, said he was calling on the industry to take another look at business insurance premiums for women entrepreneurs with a view offering discounted premiums.

The research was based on 400 entrepreneurs equally split between male and female, who own and run a small business employing fewer than 20 staff.

Nov/DEc 2010 SalonFoCUS PAGE 9

News

& lifestyle tv focus of Movers Groovers

criminal probe

NHF packs punch NHF members won 8 out of 13 categories in this year’s British Hairdressing Business Awards. Michael Van Clarke, London,

clinched two categories – Customer Care Award and Retail Salon of the Year.

Creme Hair & Beauty, of Oakham, Rutland, won Salon Design Award; Barrie Stephen Hair, Leicester, Salon Team of the Year; Clay, in Oxshott, Surrey, Independent Salon – Business Newcomer; Hair Ott, in Cosham, Portsmouth, Training Award; Stuart

Durham Constabulary has mounted a criminal investigation into Lifestyle TV, the company that sparked a torrent of complaints from salon customers.

The probe also includes Cheshire Finance & Leasing which shared the same directors with Lifestyle TV and brokered finance deals with Lombard.

Lifestyle TV, supplier of a diamond crystal mirror system, including television screens, in-salon channels Holmes Hair & Beauty Spa, in Cheltenham, and programming was wound up in the summer Gloucestershire, Salon of of 2009. the Year 1; Tommy’s Hair Complaints ranged from alleged Company, Chester; Salon of fraud to misrepresentation, non-delivery the Year 2 and Ken Picton, and the supply of non-functioning Cardiff, Innovation of the Year (Including Website equipment. of the Year).

SalonFocus, which was at the forefront of developments as events RUSH to win unfolded, had feared that after the Nearly half of this year’s British Hairdressing Awards Official Receiver’s Office abandoned finalists are NHF members. its own investigation, that nothing more RUSH was a finalist in four would be done. categories in the awards But Durham Constabulary has been which take place at the JW busy following up a complaint from Marriott Grosvenor House Hotel on November 22.

Carrie Rutter, of Carrie Hairdressing, CARRIE RUTTER in Darlington who, with the help of The Vault solicitors Wright & Wright, succeeded Nicky Clarke has opened in persuading finance company Lombard there was a Gentleman’s Grooming Vault at his London salon, sufficient doubt as to the authenticity of the signature a private room on the lower that Lifestyle had obtained. ground floor, offering Lombard subsequently released Rutter from the shaves, and contemporary finance agreement and sent her a cheque for nearly haircuts. He described it £11,000 which was what she had paid during the as a new concept in men’s hairdressing and facial agreement. Lombard also said it had no intention of grooming. recovering the equipment.

A spokesman for Lombard parent Royal Bank of Scotland, said: “Lifestyle TV and Cheshire Finance & Leasing are currently under police investigation, so it would be inappropriate for us to comment.”

Durham Constabulary told SalonFocus that officers had arrested four people to date – three men and a woman “on suspicion of creating a false instrument and obtaining property by deception’”. No charges had been brought against them but enquiries were continuing.

He said former Lifestyle director Carrie Rutter’s salon, carrie hairdressing Anthony Lloyd was believed to be out of the UK and the UK Border Agency had been informed that if he re-entered the country, police would like to speak to him.

PAGE 10 SalonFoCUS Nov/DEc 2010

Hob job for Peaches

The hob salon chain, famed for attracting celebs through its portals, recently gave fashionista, presenter and model Peaches Geldof a hob job at the Camden, north London branch, courtesy of creative colour director Christel Lundqvist who was the 2008 British Colour Technician of the Year, and nominee for the accolade again this month.

Christel Lundqvist with Peaches Geldof

Haringtons aims for 30

Haringtons has revealed it has four more potential franchises in the pipeline.

Robert Smith, director, said: “Although we’re not aiming for UK domination or anything, a maximum of 30 salons in the South East would be nice.”

A range of exclusive stationery and literature for NHF members New brochure out now visit www.nhf.info or visit www.nhf.info

salonplus www.nhf.info NHF06084 eshop ad 2.indd 1

www.nhf.info

13/4/10 14:12:54

Nov/DEc 2010 SalonFoCUS PAGE 11

News

flexi-hours–

call the lifeline The Legal Lifeline has stressed the importance of the need for members to phone its advisers for guidance when dealing with requests for flexible working.

The increase in employees seeking to better balance their professional life with their domestic responsibilities has prompted the service to issue guidance on how to deal with such requests.

Applications can be made if employees have at least 26 weeks’ service; care for a child who is aged 16 or younger, or 18 or younger if disabled; and if they are the child’s mother, father, partner – or their spouse – adopter, guardian, foster parent or carer and have responsibility for the child’s upbringing.

Only one application can be made every 12 months. Requests must be in writing and include details of desired working patterns, proposed effective dates and confirmation of eligibility.

The employee must explain what effects they believe their request will have on the business and how these might be dealt with.

Employers must meet the employee within 28 days of application unless they automatically agree to the change.

The employee has the right to be accompanied at all meetings by a work colleague.

They must be informed of the decision in writing within 14 days of the meeting. Any changes to terms and conditions must be confirmed in writing if the request is agreed, the parties can agree an extension to the time limits, in which case the agreement should be recorded in writing to avoid confusion later.

Refusal is only warranted on one of the following grounds: burden

PAGE 12 SalonFoCUS Nov/DEc 2010

Lifeline help available 24 hours a day

of extra costs; detrimental effect on ability to meet customer demand; inability to reorganise work among existing staff; inability to recruit extra staff; detrimental impact on quality or on performance; insufficiency of work during the periods the employee proposes to work; and planned structural changes.

Employers must give serious consideration to a request and fully explain reasons for refusal to avoid possible sex discrimination claims or for failure to comply with the statutory procedures.

Owners will need to consider proposals to facilitate the request, such as the possibility of a job-share and be able to prove they did so. Employers may consider agreeing to a trial period as an alternative to refusing the request outright and, if so, it is advisable to set out in writing what the operational concerns are and why the trial period has been agreed.

A review date before the end of the trial should be agreed so that the employee has sufficient advance warning to make alternative care arrangements if the hours do have to be amended again.

Failure to implement this poses a risk the employee will think the trial has worked out. However, employers need

good reasons to change their mind so it is not recommended they use trial periods simply to postpone a decision.

Where a request is refused, the employee has the right to appeal in writing within 14 days of receiving the decision. The employer must hold an appeal hearing within 14 days of this appeal notice. Employees have a right to be accompanied and a decision must be confirmed in writing within 14 days of the appeal hearing.

Employers cannot penalise or dismiss staff for exercising the right to request flexible working and employees can bring a claim if their employer has failed to follow the prescribed procedures or if the rejection was based on incorrect facts.

Employment tribunals can make an order to require employers to reconsider the application, award compensation or both. Compensation is limited eight weeks’ pay for failure to follow the prescribed procedure. Employers may also be exposed to claims for sex discrimination.

the taxman cometh Her Majesty’s Revenue and Customs’ (HMRC) increasingly

aggressive tax recovery pursuit is only likely to change for the worse with a new coalition government that has an immediate need to plug what amounts to a black hole in the nation’s finances, writes Peter Mount Hairdressing salons come in all shapes and sizes and the smaller ones may be tempted to assume they will slip under HMRC’s radar.

This temptation should be resisted: it is HMRC policy to examine businesses on a fairly random basis. They are also beginning to target specific business sectors and, if hairdressing comes up on that list, many salons will get attention.

HMRC has power to demand the production of documents or, in extreme circumstances, to seize them. It also has power to enter premises. These powers are likely to be used where the taxpayer fails to co-operate or where HMRC has good reason to believe the taxpayer will not co-operate right from the start.

The government tax collecting body can also obtain documents from third parties and it has both civil and criminal powers.

The civil powers entitle HMRC to: • Require documents to be produced or information provided • Enter and inspect business premises, business assets and documents • Have access to the computers on which documents were produced.

Inspections will normally take place at an agreed time, or on seven days notice, but they can be unannounced.

Fines of up to £3,000 can be imposed for non-compliance and, since you will be compelled to comply anyway, noncompliance is really not an option.

HMRC also has powers under criminal law deriving from the Police and Criminal Evidence Act 1984 (PACE) and the Serious Organised Crime and Police Act 2005 (Socpa) which give it power to: • Enter and search premises • Require production of documents • Seize items such as computers • Arrest people

www.nhf.info

HMRC may, under Socpa, require people to hand over relevant material which could help an investigation.

Sanctions vary, but include fines which can be as high as £5,000 under Socpa and can also include 51 weeks imprisonment under either Act. When exercising its criminal powers, HMRC will normally agree a time or, at least, give notice, but it does not necessarily have to.

In fairness, HMRC has indicated that unannounced inspections will be the exception rather than the rule, but that could change. Exercise of these powers requires the prior authority of a magistrate or justice of the peace or, in some cases, a circuit judge.

Beyond the fact that invocation of the powers generally requires a warrant, there are some other safeguards. HMRC cannot enter any part of premises which is used as a dwelling; this would appear to give those who work at home a lot of protection, but PETER MOUNT remember HMRC can generally think of some other criminal offence to get a warrant.

Finally, there is the separate subject of legal professional privilege. In simple terms, HMRC is not entitled to have access to documents, including those which are held on computer, which are “privileged”: Legal advice privilege covers confidential communications between a solicitor and his client in the context of seeking or giving legal advice.

Litigation privilege covers communications between solicitor and client, and solicitor and third parties in connection with actual or pending litigation.

In my next article I will consider what you can do if you become the target of an investigation or a “dawn raid”.

• Peter Mount is partner at Woodfines Solicitors.

Beauty Spots Counterfeit alert The Cosmetic,Toiletry & Perfumery Association has

highlighted the dangers from illegal and counterfeit cosmetic products, such as tooth whiteners and sun protection products. It says it is worried such products could jeopardise consumer safety and erode trust.

Nice call The National Institute for Health and Clinical Excellence has called on

schools to encourage parents to provide children with high-factor sunscreen for break times.

Avon mentor

West Ham United football club vice-chairman Karren Brady has been asked to mentor and inspire Avon staff. She will share business advice and practical skills.

Minogue Heaven

Heaven beauty salon in Shifnal, Shropshire, has been helping Dannii Minogue get back into shape since the birth of her baby. She is reported to have been using the salon’s lymphatic drainage massages to increase the lymphatic flow and get rid of toxins.

Airbrushing labelling

Girlguiding UK wants images of celebrities that have been airbrushed to be labelled as such to tackle “damaging and unrealistic” pressures on young women.

BAAPS warns against mark The British association of Aesthetic Plastic Surgeons wants a new

government-sponsored Quality Assurance Mark for providers of injectables such as dermal fillers and Botox to be put on hold pending guidance from British and European Union standards agencies. It warns the public that the current scheme makes no distinction between practitioners who have trained for six or more years and those who simply take a weekend course.

Nov/DEc 2010 SalonFoCUS PAGE 13

News

confusion reigns over

music licences Hair salons are still failing to understand their obligations when it comes to playing music despite numerous articles in SalonFocus about the issue.

The Legal Lifeline has noticed BASIL LONG a considerable increase in hairdressers that PRS for Music or Phonographic Performance Ltd (PPL) has contacted and says salon owners are confused about which licences they need.

Musicians make money from holding the copyright in their music. This means they get paid every time it is used.

It is only fair that they get paid if you are using their music to entertain your customers because you are getting a benefit from the music and so should they.

The problem is that it is not as simple as that. There are several different copyrights in the music. Whoever writes the lyrics has a copyright in the words, the composer has a copyright in the composition and the performers obtain a copyright in that specific performance of the song.

Take the song Run, for example.

Gary Lightbody and the rest of Snow Patrol wrote the words and the music and own the copyright in those. However, Leona Lewis would own the copyright in the performance when she did her cover. You would need a licence from each copyright holder.

When you buy a CD or a download, this automatically comes with a licence for you to use the music in private but

PAGE 14 SalonFoCUS Nov/DEc 2010

not for your business.

It is not possible for every business to obtain a licence from each and every band, lyricist or composer so the music industry established PPL and PRS for Music.

PRS for music handles the copyright for the lyricists and composers and so you will always require a PRS licence unless there is a band in the corner of your room performing only their own music.

PPL deals with copyright licences on behalf of the performers so unless the music is being performed live you will also require a PPL licence. Playing the radio will always require both a PRS and PPL licence, and this is regardless of whether the music is for customers or just for the staff.

Both PRS and PPL can seek to recover licence fees going back up to six years.

They are also able to charge a licence surcharge of up to 50% on top of the licence fee if you do not have a licence in place before you start playing music.

If you play music videos you will require a television licence as well and if you show films in your salon, a licence from Motion Picture Licensing Company or from Filmbank. (SalonFocus

Jan-Feb 2009).

Failure to buy licences is also a criminal offence with potentially an unlimited fine and up to 10 years in prison.

Ecg – Don’t get caught The European City Guide (ECG) appears to be still going strong – “a rip-off” that both SalonFocus and its predecessor Headlines has previously investigated.

The guide seems to offer you free advertising in its directory, CD-ROM or online. It sends you out a form asking you to check the details – which will be deliberately incorrect – and you will then sign the form and return it.

You then get landed with a bill about €900 (£750) annually for three years thereafter. The contract is automatically extended annually unless cancelled within the specified window.

Ask at your local trading standards office and they will probably have a thick file on ECG. The ECG is regularly shut down in one country only to open up in another country a few weeks later. Unfortunately though the scheme is profitable for the people behind it.

The letters they send are highly threatening, stating apparent legal principles which entitle them to the money.

The contract will not stand up in court and the ECG know this – it has never knowingly issued any proceedings, let alone actually been successful in any action to recover any money. However it does not stop them sending the threatening letters.

Do not get involved with the ECG in the first place. If you receive a form simply throw it away. Those who have returned the form and are hassled for money should write a simple, curt letter informing ECG that the contract is not legal and stating that you have referred the matter to the Office of Fair Trading and local trading standards office. This should be enough to get them off your back.

Do not enter into any further correspondence. Identify the letters from the envelopes and return them as undelivered.

Salon owners should take this as an urgent reminder to check through all contracts they sign up to or agree to verbally or over the internet.

MUSIC CREATES THE RIGHT * ATMOSPHERE. A recent survey revealed that over 80% of customers say that music in salons creates a good atmosphere.

Over half of those surveyed would recommend a salon that plays music over one that doesn’t.

There is no doubt that music is good for business. The simple act of turning music on can make a huge difference to productivity and sales.

CT US CONTA DAY O SAVE T rs can me

sto New cu ll cost e overa th e c u d e r censing year’s li t s r fi ir and of the cting us ’† by conta n Focus lo a ’S g quotin 5 34 109 020 75

PPL can help make music work for you by offering licensing solutions for playing recorded music in public. A PPL music licence will give your business access to literallly millions of songs – all for as little as 16 pence per day.

For more information on how to obtain your PPL music licence** visit ppluk.com or call 020 7534 1054.

To find out more on how music can work for you visit musicworksforyou.com.

ppluk.com *MusicWorks survey of 2000 people, conducted March 2009. ** If you play recorded music in public it is a legal requirement to obtain the correct PPL licence, failure to do so may result in legal action. PPL is different from PRS for Music. PPL collects and distributes money on behalf of record companies and performers whilst PRS for Music collects and distributes money on behalf of songwriters, composers and publishers. Both licences must be obtained to ensure all copyright holders are fairly paid. † If you play recorded music in your business without obtaining a PPL music licence you would normally incur a 50% surcharge on your licensing fee. However, by proactively contacting PPL to declare your music usage and quoting ‘New Business’ this would not be applicable – the equivalent of a 33% saving.

00795 - PPL Salon Focus Ad.indd 1

01/06/2010 17:35

Federation

focus

Inspiring at conference presented a

By Stephanie Munno

NHF Inspire

From left: Rebecca Dickenson, Matthew Guy Sutcliffe and Katy Grimshaw

showcase of their talents and expertise under the mentoring guise of the Sassoon artistic team and NHF Inspire manager Rebecca Dickenson at the annual conference.

The team developed ideas taken from the catwalk with a theme of “All Woman”, re-inventing the classics of hairdressing and developing the looks of the future.

Matthew Guy Sutcliffe,

Coray and Curry take the lead

Harry Walker, NHF president for the

He said he was looking to give the last three years, handed over the reins NHF a higher profile. “I firmly believe to his vice-president, Mark Coray, at we need to get the young ones involved to speak to us and be part of the NHF annual general meeting and us.... I believe that we need the youth conference at the Apex City Quay and the experience.”

Hotel & Spa, in Dundee, on October Curry said he was looking forward 3-4. to the new challenges ahead of Walker, who helped to implement him. “Although I have the Strategy for the served on many NHF 21st Century, said at committees, there are still the AGM that he had some, as yet, that I have the greatest of respect not. I am also looking for his successor who, forward to working as vice president, had across the country always been there to help and would always be whenever it was needed. willing to help at any “I feel we have laid the area or branch activity path and have started when I am available...I to move along it and I am looking forward to am confident that under working with Mark and Mark’s presidency, backed being supported by the

by Eileen Lawson, the helpful team from head way ahead will continue office.” to be there for the benefit Preparations are of all members.” already under way Coray, who was MARK CORAY, NEW NHF PRESIDENT (TOP) AND VICE-PRESIDENT with the North East inaugurated at the PAUL CURRY conference as president Area for the NHF’s and Paul Curry, as AGM and Annual Conference 2011 at the vice president, said: “The first thing that entered my head when I became Newcastle Marriott president was how privileged I felt to Hotel MetroCentre, in be the youngest person in the role and Gateshead. having the important support of the National Executive Council behind me.”

PAGE 16 SalonFoCUS Nov/DEc 2010

an NHF Inspire member from The Westrow Group, in Leeds, said: “It’s a celebration of womanliness with nipped-in waists, curvy frames, ankle-brushing skirts and, of course, beautiful hair.”

Katy Grimshaw, another member, from Celeste Arnold, in Rossendale, Lancashire, said: “Louis Vuitton nailed it with its latest campaign, the clothes looked fantastic and the whole feeling behind the images excited us. Dolce Gabbana followed a similar route – red lips and neutral eyes being key, but again very feminine and beautiful.

The retro look has many different elements and we put together a variety of individual ideas for the hair.

Our hair presentation is about classic, yet relevant, beautiful hair for the women of today.”

The team began with demonstrations showing fluid colouring techniques, sharp inspiring cuts, and voluminous up-dos.

The colours ranged from blackcurrant and deep raspberry hues to pale honey blondes accented with icy elements.

Dickenson said: “The influence of Sassoon and hob, the 2009 mentors, were clear as the team executed their looks – the cutting was amazing, colouring second to none, and it was great to see a different spin on the whole classic up-do…We’re already preparing for future seminars.”

Wendy Harris, Team GB Manager Lan Nguyen

British Open reminder

The nation’s hairdressers are reminded to keep Sunday, June 12 2011 free so they can attend the British Open Hairdressing Championships.

This highlight of the hairdressing calendar that is not restricted to NHF members will be once again held at Cardiff City Stadium.

Those with far to travel may want to stay for the weekend and enjoy the delights of Cardiff Bay. There is something for everyone: categories cover juniors (under 25s), trainees and newcomers as well as the seasoned professional.

Paris 2010: Here we come

Fingers are crossed for Team GB who in just a few days time will be giving everything they have got to secure victory at the OMC World Hairdressing Championships, at Porte de Versailles, Paris.

Wendy Harris, team manager, said: “This is the culmination of two years’ hard work by all of the team and everyone is excited and a little nervous.”

Harris said the team had undergone training with L’Oreal makeup artist Lan Nguyen who knew exactly the image they were looking for.

“We have also had the final dress rehearsal at L’Oreal in Hammersmith where our photographer came along to take some superb shots of that final training session.”

She said the run-up to the event had gone smoothly and the L’Oreal sponsorship had helped tremendously with training aspects.

“The team has worked really hard and it only leaves me to

wish them all good luck and I know they will do me proud.”

Mark Coray, the NHF’s new president, and international juryman who has represented Great Britain twice in the World Hairdressing Championships and numerous times in international competitions, said: “I know how many sleepless nights a competitor can have. The day before is just so exciting waiting for it all to happen. Once you are on that train or plane travelling to the event, the realisation sets in that all your hard work is now going to be on show. The team has been doing fantastically.

They have had their up moments and they have had their down moments but in the end it all comes together.

“From my point of view as a judge it is quite important that we have given help and guidance installing confidence, and the vision of that gold medal in their sights keeps them focused...I am sure that all their hard work will pay off.”.

Beat the deadline

The clock is ticking to get your entries in for the NHF

Photographic Stylist of the Year 2011 Competition.

You may enter as many times as you wish but please submit your work with a completed form and payment of £25 per photographic entry by January 31.

Those who participate will have the opportunity to see their work in print.

Competitors may be individuals or teams comprising two or more people. You must enter both the ladies’ and men’s categories to be eligible to enter for the overall winner.

Finalists will be notified next March. The awards ceremony will take place at the British Open Hairdressing Championships

Millions Check out NHF Website

The Federation’s new website has attracted more than 2m visitors since it went live earlier this year.

The site, www.nhf.info, has attracted an average of 287 visitors every day, each one of them viewing 15 pages and spending more than five minutes viewing the information.

The most popular items ordered to date on the eshop, which went live on May 14, are the Statutory Holidays Explained, National Minimum Wage Fact Sheet and the Maternity Rights Explained Fact Sheet.

www.nhf.info

All materials about chair rental, licences and leases have also proved highly popular and the NHF has had to reprint the new Contracts of Employment and the Deeds of Apprenticeships they were in such high demand.

Gift vouchers and envelopes are selling fast and, with Christmas soon upon us, do not forget to place your orders in plenty of time for the festive season.

For those who have not yet visited the eshop, log on to the members’-only site and see for yourself what you can order either as a free download or through the post from head office.

in Cardiff. Winning images will be published in the summer issue 2011 of Inspirations.

Cash prizes range from £250-£500 provided we get sufficient entries to cover the cost.

Please see the enclosed application form with this issue of SalonFocus for full details. Further application forms can be downloaded from www.nhf.info/ photographic.

Nov/DEc 2010 SalonFoCUS PAGE 17

Cutting Brief

YOUR LEGAL PROBLEMS

SOLVED

Gillian Dowling from Croner, operator of the NHF’s Legal Lifeline, answers your questions My burglar alarm is monitored by a central monitoring station and there have been several false alarms. The police say they will no longer respond. Can they do this and, if so, how long before they have to start responding again?

There is no obligation for the police to respond to any burglar alarm. Their public service obligation only extends to attending where a crime is taking place or where there is a danger to life, and the police will make the decision as to whether it is a call to which they should attend.

A burglar alarm is not an indication that there is a crime in progress, but merely an indication that there may be – and in this situation there have been sufficient false alarms that the chances are there is not. They are therefore perfectly entitled to decline to attend and there is no requirement for them to resume.

You should, however, check your contract with your service provider to see if there is a minimum service level. The chances are, however, that they will be fully entitled to charge for the service you subscribe to because the system is still working and the call is still routing through to the monitoring station.

You may wish to consider changing to a system which is monitored by a company that has a contractual obligation to attend if the alarm goes off.

A member of staff resigned verbally over the telephone and I said I would not accept the resignation until I had it officially in writing.

Nonetheless, I made arrangements to replace the member of staff because I was led to believe their decision was definite and the written resignation would come in a matter of course. No letter was forthcoming and the member of staff has changed her mind. Am I obliged to keep her on?

An employment contract can be brought to an end unilaterally by an employee offering his or her resignation. There is no requirement for an employer to accept a resignation. It is not necessary for an employee to give written notice of their resignation but it is recommended that employers ask employees to confirm a verbal resignation in writing, as you did.

An employer has a duty to ensure that any resignation is genuine and has not been given in the heat of the moment in order to avoid any confusion or misunderstanding. Regrettably, it is clear that this employee has changed her mind in relation to

PAGE 18 SalonFoCUS Nov/DEc 2010

her resignation and, while there is no obligation to keep her on following this verbal resignation, given that you advised that you would not accept her resignation until she confirmed in writing, I suggest that this remains the case.

Doing so will protect you from the possible consequences of misinterpreting this employee’s actions and unwittingly dismissing her, exposing yourself to liability.

However, if you have offered her position to a prospective employee who has accepted this position, then you may face a breach of contract claim should you subsequently withdraw this offer. If this is the case, then you must give notice to this employee in accordance with the terms of the contract to terminate safely.

I have discovered my top stylist is moonlighting.

I do not want to sack her but she has ignored repeated requests to stop. What are my options?

Most employment contracts will contain a provision restricting employees from undertaking any extra work which directly competes with the employers business.

The object of such a clause is to protect the employers’ business from competition brought about by this employee’s skills.

To breach this term will usually be considered misconduct, and often gross misconduct, depending on the nature and severity of the breach.

In this instance, as this employee has ignored repeated requests to stop her moonlighting, but she has not faced any consequences, your first step in dealing with this would be to reset the standard required and remind the stylist and all of your staff of the existence of this contractual provision.

It would also be advisable to warn of the consequences and the severity should any employee fail to comply, which would usually be disciplinary action to consider an act of gross misconduct.

Should there be any further breach following this notice then a full investigation should be undertaken, with a view to taking disciplinary action against any employee thought to be moonlighting in breach of the policy. This may, or may not, include considering the dismissal or any other disciplinary sanction.

INSPIRED

Beautiful

Hair: Adele Bourne & Rebecca Dickenson @ The Vanilla Rooms, Bawtry Photography: John Rawson @ trp Make-up: Lee Pearson & James O’Riley Styling: Bernard Connolly

Iconic

INSPIREd

PAGE 20 SalonFoCUS Nov/DEc 2010

www.nhf.info

Besting it at the

Backwash

The backwash is the yardstick by which many clients judge a salon business, reports Jackie Lang The backwash experience has been transformed in the last 5-10 years for the industry into an independent source of income and a service that adds essential value.

Some big brand product companies and a host of quality furniture manufacturers have helped the transformation from shampoo station to spa experience.

My company spends Jackie Lang has been much time listening to managing director of clients and staff and so Regis UK since 2008. the way in which our She is responsible for 450 salons that backwash service has include Regis’s UK matured has kept one branches and Sassoon step ahead of needs and salons in the UK, expectations.

Germany and USA. Regis buys the right backwash for the right format and spends 10% of its salon build and maintenance costs on the backwash.

The choice allows for a little more luxury where clients have colour services and spend more time in this area. In our Supercuts salons, functionality and speed are the key priorities so a more basic choice is required.

We have a defined formula for the way each of our salon brands look and our backwash choices must fit within that. However, we do need to be flexible on size and design because the challenges of space differ from one salon to another.

Safety and functionality are key considerations and compete with client comfort to be top of the list. In salons all over the country young stylists and trainees spend considerable time at the backwash tending to clients, and Regis has many employees to protect. The company ensures that the right flooring is fitted around the backwash in case of spills, that the basin is deep enough

PAGE 22 SalonFoCUS Nov/DEc 2010

to protect clients and staff from splash back and that the area has adequate space to place products, towels and laundry within easy reach.

Client comfort is a primary concern and Regis makes certain the angle of the chair and basin, the neck rest and the chair itself provide the optimum comfort.

All of our salons carefully follow accessibility guidelines for less able clients and many of the units are inside shopping malls which accommodate wheelchair access well.

Regis has selected a backwash by REM with a removable chair in every salon to give free access to wheel chair users and the disabled.

Although Regis works to a budget, it never buys on price and chooses instead to shop around the world to get the functionality, durability, comfort, build quality, safety and style it needs to fit each brand.

About 60-80 of our 1,800 backwashes need repair or replacement each year but upkeep is an essential part of ensuring the overall backwash experience meets expectations and the Regis salon maintenance team is on continuous watch.

Regis reviews its salon design choices on an ongoing basis and as such frequently assesses the wide variety of backwashes on the market.

10 Golden Rules

• Set a budget and shop around • Make a list of the qualities that are most important to you and your clients • Think about how you will fit in all the things you need.

• Talk to your designer or fitter about the space available and make sure you consider leg room • Consider maintenance and accessibility to plumbing • Ensure you work expected longevity into your longterm refurbishment plans • Think about the lighting and what your clients will see in the reclined position at the backwash • Involve staff in design and choice • Provide for less-ablebodied clients • Buying the right backwash will give you easier access to a new revenue stream of leave-in treatments, glosses and toners plus added value services like head massage.

A quartet of backwashes at Regis, at Merryhill, in Brierley Hill, West Midlands

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Nov/DEc 2010 SalonFoCUS PAGE 23

Sickness need not mean the end Daniel Field advises how to keep your business in rude health if you become sick

Daniel Field is the co-founder and former chairman of Ark Environmental Foundation. He is considered the pioneer of organic and mineral hairdressing and he launched a national range of hairdressing products with Boots. His time is split between his laboratory work and his hairdressing and he can still be found in his eponymous Barnet, north London salon.

No one likes to think they could get seriously ill but you could be off for many months if you do.

A pre-prepared foolproof plan will ensure your business continues to pay its way and provide you with some sort of income.

Murphy’s Law

Choose your deputies

Staff confidence

Start to groom a trustworthy member of staff who can take over the daily management roles – far better than trying to bring in someone from outside.

Allow this person to take charge when you are off or coming in late.

The more practice they get the better.

Everyone needs to know they can trust this person completely, especially you.

Choose someone outside the salon who can act as their backup. They will need to be someone who has business experience but not necessarily salon experience. They will be professional, empathetic and most of all totally honest.

Preparation

You must have a business operating manual that is implemented when you are absent.

First categorise everything in the form of a check list based on frequency – daily, weekly, monthly and in an emergency.

Then, using dividers, explain each procedure in precise detail.

Training and practice

You cannot then just hand this documentation over and expect your deputy to get on with it. You will need to train them. They must have tried each procedure at least once while you are present and when you have time off. Let the staff know when this is happening.

Backup support

Your salon deputy and staff will have met and will trust the backup. Your deputy must be able to call the backup daily if help, advice, or reassurance is needed.

PAGE 24 SalonFoCUS Nov/DEc 2010

Ensure you avoid chaos. The chances are something else will go wrong at this difficult time. Staff will need emergency numbers of reliable, reasonably-priced people to call should something need immediate fixing. Think back over past crises. Make sure there is an emergency cash float in the safe for these eventualities.

Talk to all staff as part of their ongoing training about what happens when you are away for a time. Avoid petty rivalry by getting staff used to this person’s position and avoid panic by showing staff they can trust in the procedures.

Make them aware as soon as you employ them that you trust this deputy and backup and how important it is that everyone supports and encourages both them and their tasks.

Let them know the salon can continue to run efficiently and wages will still be correct and on time.

Payroll, invoices, book-keeping

You will need to organise an outside service if you do any of these yourself. Leave a signed chequebook secured with the backup with their contact details and wages information. They will oversee pay and the settlement of bills with the book-keeping service each month. Get the book-keeping service to reconcile daily banking on a weekly basis.

Staying in business, getting an income

Working owners make a massive difference to overall profitability compared with managed salons. You will need to pay a bonus to your deputy each day they are in charge and you will be down by most of your own salon takings.

It is unlikely staff will be as driven or will fit clients in when you are not there. It is human nature to slack and this must be taken into account.

Insurance

Look at income protection or critical illness insurance.

Income Protection Insurance, previously called Permanent Health Insurance, pays benefits to those who are incapacitated and unable to work because of illness or accident. These will be more expensive if a deferral period is not included in the policy.

Critical illness policies entitle the holder to a lump sum cash payment if the policyholder is diagnosed with one of the critical illnesses listed in the insurance policy.

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Stress-

busting Salon owners who turn a blind eye to stress could find themselves in deep water, says Roddy MacLeod The law does not recognise stress as a specific injury and litigants need to prove they have a “psychiatric” injury for a civil claim in Roddy MacLeod is a the County Court partner specialising in to be successful. stress and harassment But they claims at law firm Weightmans LLP. can still obtain compensation for injury to feelings through an employment tribunal claim or under the Protection from Harassment Act 1997.

The business could also be subject to an Improvement Notice from the Health and Safety Executive if the owner fails to undertake a suitable and sufficient risk assessment for workrelated stress.

It is therefore important salon owners put a stress risk assessment in place alongside company policies on bullying and harassment.

Salon owners need to prove their employees have read these policies if they want to demonstrate “best practice”.

Employees need to be told what behaviours are considered harassment and what disciplinary action they may face

PAGE 26 SalonFoCUS Nov/DEc 2010

if they are found to have harassed a fellow employee.

It will be harder for staff to plead ignorance if they are consulted when policies are formulated.

The Protection from Harassment Act 1997 provides no clear definition of what amounts to harassment so if staff play a role in drawing up such behaviours they will be less likely to err.

Once salon owners have their policies drawn up, they need to ensure that they are followed.

Although this can be time consuming, it is far better to spend time following the correct procedures and keeping detailed notes of any grievances raised than to leave the business wide open to a successful compensation claim.

Overwork is the other main cause of stressrelated absence. The Working Time Directive sets out 48 hours each week as the maximum average amount an employee can work but this is not a magic figure.

Successful compensation claims have been made by employees working part time while other employees working more than 48 hours have been unsuccessful with their claims.

Keep records showing the hours employees work. If salon owners do not do so then the issue is left open to argument.

It is sensible to have regular meetings with employees and a documented appraisal system is desirable so either party can raise issues of concern.

Employees will succeed with overwork stress claims in the County Court if they can show that not only were they overworked but also that their employer knew or ought to have known that they were developing a psychiatric injury.

It is therefore important to be open to complaints about how work is affecting employees’ health. This is especially the case if time off sick is taken and a sick/fit note comes in indicating the absence was because of work-related stress.

Most successful stress claims arise out of a failure to properly manage an employee’s return to work. Medical advice should be obtained before the employee returns, where possible, and if a phased return is recommended, then that should be followed.

Too often an employee’s immediate boss ignores the carefully formulated plan and piles on the appointments, causing the employee to go off again.

When it comes to the financial cost of stress claims, employers’ liability insurance will cover a County Court claim for compensation arising out of an overwork or a harassment allegation.

However, the cover is given on the condition that the insurance company is informed of the claim promptly.

The key for salon owners in combating stress claims is to regard psychiatric injuries in the same fashion as physical injuries. Costly absences from work will be minimised and expensive compensation claims avoided if relevant documentation is in place and employees have been educated.

EDUCATION UNPARALLELED

SASSOON.COM

Security – protecting your Christmas is one of the times salon owners should be most on their guard and attentive to security, writes Wendy Nixon

Wendy Nixon is Business Development Manager, Habia.

“This time of year is the ideal time for opportunistic criminals who spot easy pickings. It is far too easy to take your eye off the ball”

It is vital salon owners review security procedures in the run-up to Christmas and ensure they are enforced rigorously throughout the period.

This time of year is by far the busiest and it is far too easy to take your eye off the ball and let procedures slip.

This makes it the ideal time for opportunistic criminals who spot easy pickings.

Staff, too, can be tempted to give in to the urge to pocket a few pounds, or a few products that can be sold to friends, especially after a drink or three at the salon party.

Alcohol and the salon do not mix well especially with razor-sharp blades and chemicals on-site so a party away from the salon is a better idea.

Takings usually increase during the festive period which will have to be deposited in the bank making it all too easy for an opportunistic thief to try their luck.

Make the bag with the takings less obvious, secure it to the body, vary your routine and route to the bank and perhaps get someone to accompany the person with the cash.

You will need to consider who is working the later shifts in the salon if you open later to accommodate extra business.

It is not wise to have a lone female working in the salon when it is dark outside. Adjusting staff rotas to ensure that nobody is left on their own, and that employees can get home safely gives staff reassurance.

Ongoing

Security is not just for Christmas, however. You need to be aware of security and risks throughout the year.

First carry out a risk assessment, looking

PAGE 28 SalonFoCUS Nov/DEc 2010

assets at what particular risks there are to your salon. Draw up a list of potential crimes that could happen on your premises.

Consider risks to your staff to and from your salon, and transporting money. Every salon is different. If you are off a main high street, have poor street lighting, have limited parking space so supplies have to sit on the street temporarily when brought into the salon, have staff working late hours, work in an area with a high crime rate, then these are all things to look at.

What can be done differently?

Typical risks Internal Theft and Staff Collusion Let it be known that staff found stealing will lose their jobs and be prosecuted and set policies on cash handling, control procedures, point of sale devices and control, the control of voids, employee purchases, and when non-duty personnel can enter storage, office and other non-public areas. CCTV and convex mirrors can help monitor problem areas.

Backdoor crime Make a trusted member of staff control the receipt of items. And do not let anyone be hassled by delivery drivers.

Record all items so you know about anything going missing.

Counterfeit Currency Train staff so they know what to look for, and know to check each note they receive from clients. Do not rely entirely on ultra-violent devices. Make sure staff know to call the police if they receive counterfeit currency.

Card and chequebook fraud Standardise procedures and train staff in them. Check obvious things such as names matching and signatures.

Salon security checklist 1 Hassessed ave you

Carlos Porto and freedigitalphotos.net

Cash Carrying and Protection Choose the right person carefully if you cannot afford a professional cash carrying firm. Check serial numbers of highest denomination notes. Check outside before leaving the premises for people loitering or parked vehicles.

Armed Robbery Train staff about what to do. They should calmly co-operate until the police arrive. Do not put up a fight.

Assault Make it clear that safety comes before property, goods or cash. Train staff in how to diffuse potential flashpoints.

Ensure staff are never left alone. CCTV may provide some deterrent.

Bomb scares Have a policy dealing with suspicious objects, packages and evacuation procedures. Appoint a trusted member of staff as co-ordinator should such a situation arise and practise procedures.

Make use of any guidance provided by police and fire brigades. from here Drugs and Alcohol Staff under the influence are a liability, potentially dangerous and may be abusive. They can also damage your business reputation. Be aware of the symptoms and make sure staff are aware of a zero-tolerance policy.

Remember, however, alcohol abuse can be a sensitive issue, and a previously reliable member of staff now showing they have alcohol issues may need help more than discipline.

www.nhf.info

Arson Half of all fires in small shops result from arson.

Do not leave flammable rubbish or waste in your doorway or near the premises. Avoid accumulation of waste in the workplace and ensure bins are emptied regularly.

Make sure skips are not too near.

Vandalism Remove graffiti immediately and, if you can, use hard-to- mark building materials. Ensure lighting is good and back areas protected by a fence.

Citizens Arrest Don’t! Understand how it can be used but leave it to the police or professional security guards. Staff safety comes above all else.

security risks to staff?

understand the law surrounding citizens’ arrests?

2 Heffective ave you taken steps to ensure everyone’s safety?

8 Dunderstand o staff

your policy on this matter and that such action could endanger themselves, colleagues and customers?

3 Dregularly o you

review risks?

4 Hincluded ave you

measures to protect people from violence?

9 Hsigned ave staff a

5 Dnotification o you fulfil

criteria in cases of violence?

contract to say they are willing to be searched?

security issues and do they understand their responsibilities?

are legally allowed to do in relation to searching staff?

6 with Do you consult 10 Do you know staff on what you

Actions to take now

Compose a security policy. Evidence of this can help prove you have taken all reasonable precautions to ensure staff and client safety should there be a threat of legal action.

Write a separate policy for each security issue to guide you and staff should the need arise. Each policy should include a statement: the position your business has taken on the issue; the goal: what the policy is designed to achieve; and the steps: the procedures that should be followed to achieve the stated goal.

Other measures

7 your Do you and staff

You should consider the following if you have the money: improved outdoor lighting; more secure doors, professional security advice, quality locks and bolts, alarm with motion detectors, double-glazed windows or security shutters, interior and exterior CCTV, lockable cabinets for keeping stock out of the way. You should only use demonstration stock on displays.

Relevant legislation • Health and Safety at Work etc Act 1974 • The Management of Health and Safety at Work Regulations 1999 • The Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 1995 (RIDDOR) • Safety Representatives and Safety Committees Regulations 1977 (a) and The Health and Safety (Consultation with Employees) Regulations 1996 (b) • Section 24 of the Police and Criminal Evidence Act 1984 • Section 3 (1) of the Criminal Law Act 1967 • The Trade Union Reform and Employment Rights Act 1993 • Forgery and Couterfeiting Act 1981 • The Fire Precautions (Workplace) Regulations 1997, As Amended 1999.

Nov/DEc 2010 SalonFoCUS PAGE 29

Go with

the flow Managing your cash flow is the best defence in uncertain times, advises Andy Beckingham

A reduction in the supply of readily available funding has left many businesses strug­gling to secure finance.

Banks have become more rigor­ous in applying their lending criteria Andy Beckingham is business as they return restructuring partner to risk rather at BDO LLP. than market-led pricing. Shortterm borrowing is no lon­ger available to finance longterm strategies and commitments or, in some cases, trading losses.

As cash generation supersedes both sales and profits as the key business driver, sound financial controls are becoming increasingly important. Many businesses are adopting a more inward looking approach.

There are several ways salons can improve their cash flow:

Look at financing

Salons should try to renegotiate their credit limits and adjust payment dates with main suppliers to better suit the needs of the business. They should also consider alternative financing arrange­ments that will improve cash flow in the short term and help provide a window to implement a profit improvement plan.

Grants and government fund­ing

There are an increasing number of grants and govern­mentguaranteed financial schemes available to help viable businesses with temporary cashflow problems. They can help with business development and they are available from various sources ranging from the European Union to local authorities.

These grants may be linked to business activity or a specific industry sector and some grants are linked to specific geographi­cal areas such as those in need of economic regeneration.

Talk to your bank

Salons may wish to discuss with their bank whether extra funding is available. The medium and long-term plan should form part of any

PAGE 30 SalonFoCUS Nov/DEc 2010

dialogue.

Communication with the bank is important because bank managers and financiers who are unaware of problems until the last minute are unlikely to be sympa­thetic and they will be less able to form part of a solution.

Other advisors such as solicitors and accountants can be useful sounding boards and might be able to help. The earlier the business speaks to them, the more options there are likely to be.

Bring new equity into the busi­ness

Owner-managers could support the business from their own resources; the cheapest form of finance. Business angels might provide a source of manage­ment expertise as well as finance.

Refinancing will often buy you more time but will not, in isola­tion, ensure survival if you fail to address the underlying problems facing the business.

Survival tips

1the Plan your approach to business of survival in the same way you plan for success.

2 Tlook ake a long hard at your shortterm objectives and make sure you are not just focussing on the horizon. Longterm planning is still important but short-term survival is the key.

3 Mwhat ake sure that you know is going on in the market as well as in the business so you can spot the problems early.

Make use of accurate and timely management information.

Reduce costs

Cost cutting is often the most obvious strategy but it is not simply a question of downsizing.

Where it is appropri­ate, downsizing needs to be man­aged properly.

A knee-jerk reaction to trading difficulties can endanger the business you are trying to save.

To summarise, the most impor­tant thing is to face up to the facts as soon as possible. The longer the business waits to address the issues, the more difficult it will be to resist a downturn and return to profitability.

Taking action to address areas of inefficiency or underperformance will also leave the business in a stronger position to capitalise on any available opportunities in the market.

Christmas

capital

A little imagination this Christmas before the new-year hike in VAT kicks in could reap bumper beauty sales, says Angela Bartlett.

Try creating your own I doubt if there will ever boxed gift sets around be a better Christmas to a theme: for skiers, drive the sales of your sunscreen and hydrating retail products with VAT products; for travellers, set to increase on January mini sizes; gardeners, 4 to 20 per cent. protective hand cream It is never too soon to and tea tree oil for cuts; remind your clients that and dog walkers, extra this is a good opportunity rich face cream and lip for them to bulk-buy their Angela Bartlett balm. Package them favourite items, or invest is chairman of the attractively in gift boxes in some of the more British Association and packaging material expensive homecare of Beauty Therapy and try combining products before prices & Cosmetology and the Confederation products with vouchers rise. of International in a box. Mum-to-be gift Maximising beauty Beauty Therapy sets with luxurious body product sales at this time & Cosmetology. cream and vouchers for of year requires good a leg and foot massages knowledge of your make great gifts for pregnant ladies. clientele: whether they are the type to Brainstorm with staff to generate more splash out on luxury gift sets or if their ideas. expenditure is more modest so tailor You can unwrap those you do not your merchandise to suit your clientele. sell after Christmas and retail as usual Your product suppliers should be able to provide you with good seasonal so you are not left with “Christmas” products in January, forcing you to sell merchandise, but if you do not want them off at a discount. to tie up too much capital in Christmas Competing with high-street stores stock, take a look at what you already on price at this time of year is almost have and consider ways in which impossible. Large retailers are able to you can make your own interesting provide buy-one-get-one-free and other presents. offers that are impossible for salons to Ensure you have a selection of gifts match. in different price ranges.

However, where you can score A tube of cuticle cream tied to an over them is with your shopping emery board with gold ribbon makes an ideal stocking filler for the lower end environment – far less stressful than a visit to a manic shopping centre of the price range.

Gift vouchers are essential at Christmas, but they can often be perceived as a present purchased by those without imagination.

PAGE 32 SalonFoCUS Nov/DEc 2010

Create some attractively packaged vouchers that are not just boring cards in envelopes. Try packaging them in an innovative way so that they look like a small present but ensure they are not too labour intensive to assemble.

You do not want to be tying red ribbon rosettes when you could be making money providing pre-Christmas treatments.

Check that packaging is cost effective to ensure it does not impact too heavily on profit margin.

Start planting the seeds of voucher purchases in clients’ minds when they attend for their pre-Christmas treatments. Those with friends or relatives coming to stay for the Christmas break will probably welcome their guests getting out of the house for a couple of hours between Christmas and the new year, making gift vouchers an ideal present for them.

Teenage daughters can be difficult to entertain over the school holidays and beauty vouchers usually go down well with them too.

Finally, in the words of journalist Katharine Whitehorn, ‘from a commercial point of view, if Christmas did not exist it would be necessary to invent it’, so make the most of your salon’s commercial opportunities this Christmas.

NHF EVENTS OTHERS

EVENTS

Please send in your events to the NHF at enquiries@nhf.info

by November 10 to appear in Jan/Feb 2011, January 10 to appear in March/April and March 10 to appear in May/ June. Updated events listed on www.nhf.info.

NHF Bournemouth & Reading Branch presents

Errol Douglas MBE - Hair Show at Carrington House Hotel, Bournemouth.

Contact Shock Cuts Hair Studio, 02380 644084 or 02380 227578. Show

Tickets: £20, competition Tickets £5 (Donation Help 4 Heroes).

6-8 NOV OMC World Hairdressing Championships, Mondial

Coiffure Beaute, Porte de Versailles, Paris. For travel and accommodation information call 01206 716160.

8 NOV NHF Central England Branch presents Lee Stafford Live, Holiday

2011 22 JAN White Rose Dinner, York Race Course. Contact Glen Jackson on 01904 635877.

29 JAN Yorkshire Area AGM

Gomersal Park Hotel.

Contact Phill Cooling on 07818 306305.

31 JAN North East Area AGM,

Marton, Middlesborough.

Contact Avril Walker on 01642 597197/591466.

13 FEB North West Area and Branch AGM, Holiday

27 MARCH

27 JUNE

Devon and Cornwall Championships, Redcliff

North East Branch AGM, Ramside, Durham.

Contact Avril Walker on 01642 597197/ 591466.

Inn, Coventry. Call

Inn Lancaster. Contact

0121 3783321,

Ken or June Taylor on 01253 895711.

Pat or Doug Cording on 01386 561704.

14 FEB

28 MARCH

visit www.nhfce.co.uk or email info@nhfce.co.uk.

21 NOV South of England Championships at the Novotel Southampton.

Contact Andrea Light on 01794 521849.

22 NOV British Hairdressing Awards, Grosvenor House Hotel, London. Call Dan Eversfield, 020 8652 8845.

Huddersfield Branch AGM, John Lawrence

International, Huddersfield.

Contact Neil Kaye on 07719 723364.

North East Area and Branch meeting, Ramside, Durham. Contact Avril Walker on 01642 597197 or 01642 591466.

27 FEB

3 APRIL

Red Rose Championship,

Swallow Hotel, Preston.

Contact Ken or June Taylor on 01253 895711.

13/14 MARCH Blackpool International Hairdressing Championships, Winter

Gardens, Blackpool.

Contact Dorothea English on 01253 294760.

www.nhf.info

Hotel, Paignton. Contact

14 MAY Yorkshire Area President’s Dinner Dance,

Dubrovnik Hotel, Bradford.

Contact Phill Cooling on 07818 306305.

Bournemouth and Reading Competitions, Carrington

5 JUNE

House Hotel,Bournemouth.

Call 02380 644084.

South West Area Championships,

17 APRIL North East Area Championships, Marton

Hotel and Country Club, Middlesbrough. Call Avril Walker on 01642 597197 or 01642 591466.

2-3 OCT Annual General Meeting and Conference North East Area.

Call 01234 831965 or 0845 345 6500.

9 OCT Cheshire Championships, Romley Forum Theatre, Stockport. Call Ian Barrell on 0161 4276953.

Weston-Super-Mare.

Contact Pat or Doug Cording on

20 Nov

01386 561704.

South of England Championships, Novotel Southampton. Call John Light on 01794 521849.

12 JUNE British Open Championships, Cardiff.

Call 01234 831965 or 0845 345 6500.

Nov/DEc 2010 SalonFoCUS PAGE 33

From Joanne O’Neill’s Panache collection

1 NOV

Not to be missed…

BACKWASH

Steve’s Smartest

Many congratulations to Steven Smart who sent nine rivals packing in a recent hairdressing special of BBC1’s Weakest Link.

He had been sworn to secrecy before the show was aired but the press release publicising his involvement rather gave the game away.

Steven Smart at the Credit where hairdressing special of BBC1’s weakest link credit’s due, Smart took a ribbing from acid-tongued host Anne Robinson who asked him why he had “that silly hairdo”. He gave a rendition of Sex on Fire after she told him: “You’ve come looking like a prat you might as well sing like one, too.” He duly obliged although Backwash thought he was almost as good as Jamie (Afro) Archer from last year’s The X Factor...well we did say almost!

Robinson rolled out the quips: “Whose wave is permanent and whose wave is goodbye?

Who puts the sham and the poo in shampoo?

Whose fringe has no benefits?”

Still, you can’t keep a good hairdresser down although one, who shall be nameless, when asked to complete the title of the Rolling Stones’ song, I can’t get no, answered, “sleep”.

Backwash did its own bit of rolling...in the aisles at that one.

Champion Smart did run into a bit of trouble with his meat – he thought “minced pork wrapped in cylinder of pastry and baked” was called a sausage pie rather than a sausage roll... but who cares, he walked away with more than a grand.

Goodbye.

Amoosing

Backwash has found a great new audience for hairdressing industry suppliers....the livestock market.

It seems as if the sector is missing out on revenues, especially from the bovine fraternity.

This was evidenced at this year’s Royal Highland Show at the Ingliston showground outside Edinburgh when hairbrushes and hairdryers were widely used so farmers could groom their animals to the max.

Everyone knows how farmers like to boast they have the biggest and the best....and sometimes the most beautiful, too.

Perhaps Habia will consider adding some new standards especially for this.

Let’s face it if you can make an old cow beautiful you can probably do anything.

Hard labour in paradise Nicky Clarke, asked

on LBC about his favourite holiday destination, recalled a working trip to French Polynesia’s exotic island of Bora Bora.

But it was not a holiday, he protested, because he had to get up at 6am to work his hairdressing magic.

We feel so sorry for you Nicky.

If you have stories for Backwash, send them to the editor at head office or e-mail to sfeditor@salonfocus.co.uk putting Editor Backwash in the subject line.

Nicky clarke

PAGE 34 SalonFoCUS Nov/DEc 2010

Bare-faced cheek Full marks to Ramsgate hairdresser Marcello Marino who adorned the outside wall of his salon with a poster of his beautiful Cubanborn wife Yaice in the belief it would attract more business.

The problem was she showed a tad too much cleavage for the delicate sensitivities of some local residents, and council officials told him to remove it because he did not ask for planning permission.

Marino obliged but, bless his cotton socks, he reportedly replaced it with another one... of her bottom.

The bare-faced cheek of it.

MORE ON MARINO There is no stopping cheeky Ramsgate hairdresser Marcello Marino.

He entered Britain’s Got Talent shortly after his poster escapade and hoped his threeminute haircut would get him past the auditions, but judges Simon Cowell and Amanda Holden

were not having any of it.

Backwash does not think Marino’s hairdressing skills let him down. More likely it was telling Cowell he needed a modern haircut because his style was unfashionable.

Not the most endearing thing he could have said.

He was right, though (ed).

www.nhf.info

Nov/DEc 2010 SalonFoCUS PAGE 35

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