Salonfocus July - August 2016 by National Hair & Beauty Federation

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Meet Agnes Leonard, your new national president

Will gender neutral pricing become the norm for salons?

How you can be a winner at this year’s Britain’s Best

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Contents

C O

T S

P6 NEWS HMRC self-employment ‘crackdown’

P10 MEET YOUR NEW PRESIDENT Agnes Leonard sets out her vision P12 COMPUTING YOUR CASH Fears around the government’s plans for digital tax returns P14 PASSPORT, TICKETS... SALON How your salon can become a ‘one stop shop’ summer holiday destination P18 GENDER POLITICS NHF members have their say on gender neutral pricing, and show how it works P24 BE A WINNER All you need to know about this year’s Britain’s Best competition P28 PROCESS OF DEDUCTION Explaining deductions from employee pay P30 STAGING COACH One NHF salon’s journey through pensions auto-enrolment P32 DUTY CALLS The complexities of pensions autoenrolment for chair renting and Saturday staff

P34 LIFE AFTER STAGING What you still need to think about once your pension is up and running P36 TARGET SECURED How one member got Wi-Fi peace of mind P38 FUTURE PROOF Understanding new payment methods P40 EVENTS P42 YOUR QUESTIONS Your employment and legal headaches answered

CONNECT WITH US AND HAVE YOUR COMMENTS AND TWEETS IN THE NEXT ISSUE OF SALONFOCUS July/August 2016 | salonfocus

Welcome

PRESIDENT’S

L E T T E R W SALONFOCUS IS PUBLISHED BY: National Hairdressers’ Federation, One Abbey Court, Fraser Road, Priory Business Park, Bedford MK44 3WH t: +44 (0) 1234 831965 f: +44 (0) 1234 838875 e: sfenquiries@salonfocus.co.uk w: www.nhf.info PUBLISHER Hilary Hall e: hilary.hall@nhf.info EDITOR Nic Paton e: nic@cormorantmedia.co.uk EVENTS AND SOCIAL MEDIA Victoria Priestley t: +44 (0) 1234 834386 e: Victoria.Priestley@nhf.info ADVERTISING SALES MANAGER Andy Etherton T: + 44 (0) 1536 527297 e: andy.etherton@nhf.info DESIGN AND PRODUCTION Rick Fraterrigo Matrix Print Consultants Ltd t: +44 (0) 1536 527297 e: rick@matrixprint.com 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. © 2016 The National Hairdressers’ Federation.

elcome to all readers of salonfocus and my first President’s Letter! It is a great honour to be your new national president.

For those of you who don’t know me, as I explain in this edition I started out as a Saturday girl at the age of 12 sweeping up hair, and have never looked back. This is a fabulous industry to work in and I am constantly grateful for the opportunities it has given me. Of course, at that young age, the thought of a pension wouldn’t even have crossed my mind. But that is all changing, because of pensions auto-enrolment. ABOUT AGNES Sam Kendall’s auto-enrolment ‘journey’ on Agnes Leonard is president of the NHF and a state-registered page 30 shows pensions auto-enrolment is not hairdresser. She has worked in the industry for 36 years and something salons need to be scared of. In fact, owns Croppers Hair Studio in it can be quite straightforward, in no small part Dundee, a busy, family-run salon successfully adapting to the thanks to the NHF’s pension scheme. fast-changing retail environment – just, in fact, like many NHF Pensions auto-enrolment is, yes, an extra members up and down the country. cost for salons. But it is also a way we can show we are looking after and valuing our people. Our employees are the future of our industry; it is only right we should be doing all we can to encourage them to save for their own long-term security.

Material for consideration in this section of the magazine should be submitted via email or digital file transfer 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 and stylist.

AGNES LEONARD NHF president COMING UP IN SEPT/OCT

THE DESIGN EDITION Whatever your budget, how to make the different zones of your salon work together more effectively and look the part

salonfocus | July/August 2016

Get networking at the NHF’s second-half-ofthe-year programme of business events Tipping at a tipping point? NHF salons have their say

Do you have a salon story to tell? Would you like to be featured in salonfocus? Get in touch with the team, on 01234 834385, or send an email to nic@cormorantmedia.co.uk

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News

SALONS NEED TO BE SURE CHAIR RENTERS CANNOT BE CLASSIFIED BY HMRC AS “EMPLOYED”

HMRC ‘CRACKDOWN’

O N S E L F - E M P LOY M E N T n accountancy firm is warning that HM Revenue & Customs is taking an increasingly tough line with businesses found wrongly to be classifying individuals as being self-employed, in a move that could have ramifications for salon chair renters.

Roy Maugham, tax partner at UHY Hacker Young, said: “SMEs are being chased for a totally disproportionate amount of underpaid payroll tax, compared to their larger counterparts. But much of the underpaid tax is due to genuine errors. This strongly suggests the government needs to simplify its systems to help SME avoid mistakes.”

Research by accountancy firm UHY Hacker Young has concluded HMRC collected an additional £737m in the last financial year through tax investigations, with payroll mistakes, especially around individuals wrongly declared to be selfemployed, a key focus of activity. Small businesses were particularly hard-hit, accounting for more than half (£373.4m) of the additional money collected, despite being responsible for just 11% (£96bn) of total UK payroll, UHY Hacker Young has argued. If HMRC decides an individual should be classified as an employee rather as self-employed, the firm becomes liable for that individual’s National Insurance payments as well as, often, higher tax charges.

TRIBUNAL CASE The research has come as, separately, four bicycle couriers classed as self-employed contractors are taking their companies to a tribunal in a bid to get employed workers’ rights. Employment lawyers are arguing that, if their case is successful, it could have a huge impact on workers who are being wrongly categorised as self-employed. Chair renters are technically self-employed, but salons need to be careful they don’t mistakenly tip over into being classed as “employed”. The Federation is advising members to call the membership team or use the NHF’s Guide to Chair Renting and chair renting agreements, both available to members through nhf.info

salonfocus | July/August 2016

News

NHF AT THE PALACE

FROM LEFT: MARY, PAUL, AGNES AND VICKI BEFORE HEADING INTO THE PALACE. PHOTOGRAPH BY PETER SEARLE

New NHF president Agnes Leonard and immediate past president Paul Curry had the honour of attending the Queen’s annual Garden Party at Buckingham Palace on 24 May. The NHF party comprised Agnes, her daughter Vicki Webster, Paul and his wife Mary. Agnes told salonfocus: “It was a lovely experience, hugely enjoyable, and we were lucky with the weather. Although I have been to events at Holyrood Palace, this was the first time I had attended an event at Buckingham Palace, so it was a real privilege, especially so close to the Queen’s 90th birthday celebrations. “The fact the NHF is on the guest list for

such a prestigious occasion also highlights the continuing importance of hairdressing and barbering as an industry and the £7bn contribution it makes to the UK economy.” As well as the Queen and the Duke of Edinburgh, guests at the party included the Duke and Duchess of Cambridge, Princesses Eugenie and Beatrice, the Lord Mayor of London plus numerous MPs and other dignitaries. Paul added: “It was very nice, very relaxed and very well-organised. Although we didn’t meet Her Majesty herself, it was a great honour to have been invited. It’s good to know that the services the NHF provides to the hairdressing, barbering and beauty industry are recognised at the highest level.”

PLASTIC IN YOUR POCKET

The Bank of England has unveiled the design for a new plastic £5 note that will enter circulation from 13 September. The new polymer note will feature Sir Winston Churchill and, the bank argued, will be more durable than traditional paper notes. It will be followed by a new polymer £10 note in 2017 featuring the author Jane Austen and a £20 note in 2020 with an image of the painter JMW Turner. Plastic banknotes are already in use in Scotland and have been used in Northern Ireland.

The Bank of England has published a video to help anyone handling the new note to recognise and authenticate it once it comes into circulation. This can be viewed at thenewfiver.co.uk.

BEAUTY PLEDGE The NHF has said it plans to step up its support for the beauty industry, amid warnings the industry is currently facing the same “perfect storm” of employment-related cost pressures as hairdressing salons and barber shops. Chief executive Hilary Hall said: “When we talk to beauty salon owners a lot of the issues are the same [as for hairdressers] – wage and pension costs are going up fast, and there are big changes coming up in terms of apprenticeships.”

SCOTTISH CHANGE Salons in Scotland should be aware tougher inspection laws came into force from April covering businesses offering non-surgical cosmetic procedures, the NHF has said. The laws from the Scottish Government mean any clinic offering Botox, dermal fillers and laser eye surgery will need to have registered with Healthcare Improvement Scotland. A new inspection regime will then start from April next year. July/August 2016 | salonfocus

News

MINORITY TURN

DOWN PENSIONS ust 10% of employees actively choose to opt out of being enrolled into a workplace pension, research from insurer Aviva has argued.

Not being able to afford the contributions was the most common reason given by employees who chose to opt out. Of these, nearly a quarter (24%) also said they felt it was “too late” for them to start saving, even though 13% were only aged 25 to 34. Latest figures from The Pensions Regulator, have suggested some 96% of “first wave” small employers have

CHECK OUT OUR SIX-PAGE PENSIONS SPECIAL REPORT ON PAGES 30-35.

successfully gone through the process, with 160,000 employers now offering pensions to some six million staff. The vast majority of small and micro salons are expected to begin offering pensions during 2016 and 2017. Separately, the NHF’s salon-specific pension scheme has gained what is called “Master Trust Assurance Framework” accreditation, showing it has met a range of standards set by the Institute of Chartered Accountants in England and Wales. It means the NHF scheme, the Salvus Master Trust, joins a select group of master trusts providing auto-enrolment pensions, including NEST, NOW:Pensions and The People’s Pension, to hold the accreditation.

TEETH GUIDANCE Hairdressers and beauty therapists have been reminded it is illegal for tooth whitening to be carried out within hair or beauty salons, the National Hairdressers’ Federation and Cosmetic, Toiletry & Perfumery Association (CTPA) have said. The joint move by the two bodies, which between them represent the vast majority of hairdressing and beauty salons within the UK, followed a call

salonfocus | July/August 2016

by the Local Government Association for “rogue” beauticians who offered tooth whitening to face tougher penalties. The NHF and CTPA have as a result published an updated factsheet for salons, available online at nhf.info This has emphasised that, following a High Court ruling in 2013, professional tooth whitening can only be carried out by a registered dentist or hygienist, therapist or technician under supervision. The factsheet can be found on nhf.info under “Resources”.

News

TWITTER FOLLOWERS 9,641

FACEBOOK LIKES 11,610

WHAT’S TRENDING

VIEWS ON TIPPING The NHF has submitted evidence, based on a poll of members, to a government consultation on the future shape of tipping. The consultation by the Department for Business, Innovation and Skills ran until the end of June and was primarily focused on tipping within the hotel and restaurant trade. The government has said it is keen to improve transparency around tipping and to update the current voluntary code of practice. Business secretary Sajid Javid said the government would “look closely at all options, including legislation if necessary” to tighten up the laws. The results of the NHF survey will be published in the September/October edition of salonfocus.

WHAT ARE YOUR THOUGHTS ON GENDER NEUTRAL PRICING? @WWEducation Pricing should be based on the time taken to do the service, gender shouldn’t come into it! @raymondbattone Can see the benefits in terms of £, maybe a price structure based purely on time would be best.

NAIL SPEND British women spend some £161m a year on nails, according to research from nails brand Jamberry. The poll of 1,000 women concluded more than two thirds of women in the north east (67%) bought nail care products on a monthly basis, and more than a fifth (21%) spent more than £10

every month, making them the country’s biggest spenders. Those in London spent the most amount of time on nail art and nail care, closely followed by women in the south west. One in four young women said they spent more on nail products than any other makeup category.

COUNCIL CHAIR The Hair Council has appointed a new chair, Bill Shaw, to take over from Lynda Whitehorn, whose two-year term of office has ended. Bill is founder of Dimensions, the largest independent hairdressing company in Yorkshire, and opened his first salon back in 1979. Ben Dellicompagni of Francesco Group is new vice chair of the council. The transition was announced at the council’s annual House of Commons reception in June, where Keith Conniford was also appointed as registrar, to take over from Sally Styles, who left the council in April. The reception was attended by the NHF, including (from left) immediate past

@Salonbeeline I work in a barbers, I charge a gents’ price if I do a short women’s cut. Another controversial subject. WHAT DO YOU WISH YOU KNEW BEFORE YOU STARTED UP YOUR BUSINESS? Emily Warne SRH @ emilywarne How to be a boss! Although learning has been fun, think I’ve cracked it now! Mr Hair Care @ misterhaircare Understanding figures HOW DID YOU DECIDE ON YOUR BUSINESS NAME? Arcana Salon Shenley @arcanasalons Something beginning with ‘A’ so it’s ‘found’ on lists first, and a word with ‘meaning’ House of Hair @ houseofhairbton We chose our name by brain-storming with the staff!! It’s a place of hair and it’s our 2nd home

president Paul Curry, Lloyd Griffiths (the NHF’s representative on the Barber Council), president Agnes Leonard, former president Mark Coray, chief executive Hilary Hall, and vice president Ian Egerton, who is also the NHF’s representative on the council.

JOIN IN THE CONVERSATION @NHFederation facebook.com/national hairdressersfederation

July/August 2016 | salonfocus

Presidential profile

WELCOME TO YOUR

NEW PRESIDENT

DUNDEE SALON OWNER AGNES LEONARD BECAME THE NHF’S NEW PRESIDENT IN MAY, TAKING OVER FROM PAUL CURRY. HERE SHE INTRODUCES HERSELF TO MEMBERS, AND SETS OUT HER VISION FOR HER PRESIDENCY.

started off in a Saturday job in a salon when I was 12, so I have been in this wonderful industry my whole life. My sister was a hairdresser and she brought me in just to sweep the floor, and that was how it all started.

I then did an apprenticeship and when I was 21 myself and my sister started in partnership in a salon. About a year later I decided to go on my own, which will be 36 years ago come October. At that time, I had a baby who was just six weeks old and I thought ‘what do I do?’, but I just took the chance and went for it. Croppers Hair Studio has seven staff. Like most salons, over the years we’ve had people come and go and our numbers have gone up and down. The salon has ten positions. We’re on the outskirts of Dundee, in a village, and everyone is very friendly. We are predominantly a hair salon, we don’t do beauty, though we do do nails. FAMILY SALON One of my daughters works in the salon, though not as a hairdresser, she does reception. So it is very much a family business; it’s got a very family feel to it. And because we’re in such as a small place everyone knows everyone; we’ve had customers that have come to me since the day we opened. What this all shows, I feel, is that I am a very typical NHF member and I understand the pressures small and micro salons are under, because they’re

salonfocus | July/August 2016

exactly the same pressures I experience every day in my salon. It’s about keeping people coming through the door, getting returning customers, consistently providing a great service and experience day-in and day-out. It’s also about how we deal with new cost pressures, such as the National Living Wage and pensions auto-enrolment, red tape, and the changes that will be coming through around apprenticeships in England. I feel hugely honoured to be your new president, and I do think it is big thing to be our first female president as, after all, two thirds of NHF members are female. I’m also very much looking forward to our 75th anniversary next year. We’ve come a long way since 1942, but we face new challenges and, as I’ve mentioned, unprecedented cost pressures. MOVING FORWARD My goal for my presidency is a very simple one: to keep the Federation moving forward, growing and improving. I think for years we were in the same place, but in the last three to four years we’ve come an enormous way under the leadership of Hilary Hall and all the hard work of the NHF team. Paul Curry and I have had a great working relationship, and I’m hoping to build that same relationship with your new vice president Ian Egerton. This progress is reflected in the fact that our membership is growing. One of my goals, of course, is to see that continue. But, to do that, we need to keep on getting the word out, to try to reach the people who

do not know about us. So I would urge members to keep working, networking and talking to other salons about the benefits you get – and they could get – from being a member. Just as importantly, use the benefits that come with being a member. Get out there, come and see us, come to our events and workshops – and I, for one, particularly enjoyed the “Using Facebook to Grow Your Business” workshop, which I thought was brilliant, and an excellent example of the sort of support we can offer to salons. Make use, too, of our pension, contracts and staff handbooks, our guides and factsheets, and our new health and safety “box”; stretch yourself and your team at our competitions like Britain’s Best. There is so much the NHF can offer.

Presidential profile

I WOULD URGE MEMBERS TO KEEP WORKING, NETWORKING AND TALKING TO OTHER SALONS ABOUT THE BENEFITS YOU GET – AND THEY COULD GET – FROM BEING A MEMBER. JUST AS IMPORTANTLY, USE THE BENEFITS THAT COME WITH BEING A MEMBER.

PHOTOGRAPH BY PETER SEARLE

HMRC tax reforms

COMPUTING

YOUR CASH

GOVERNMENT PLANS TO BRING IN MORE FREQUENT, DIGITAL TAX REPORTING ARE RAISING FEARS ABOUT THE EXTRA FINANCIAL AND ADMIN BURDEN THIS MIGHT PUT ON SMALL SALONS. SALONFOCUS INVESTIGATES.

airdressing is, thankfully, something you’ll never be able to do online; a client will always physically need to be in the chair. But, under government plans, running a hairdressing, barbering or beauty business – and in particular managing its tax – is something that will increasingly be done digitally rather than on paper.

salonfocus | July/August 2016

To an extent, this is not surprising. After all, more and more of us nowadays pay for goods and services electronically and manage our banking and finances online. Indeed, HM Revenue & Customs already estimates that 98% of Corporation Tax returns and 99% of VAT returns are submitted online. So, at one level, the government’s plans are simply a logical progression of what is already happening. There are nevertheless growing

worries about what these changes could mean for small and micro businesses, especially in terms of workload, admin and financial burden. So, what is the government proposing? END OF THE ANNUAL TAX RETURN The government outlined its plans last December in a document called Making Tax Digital. The aim, as HMRC puts it, is that: “By 2020, businesses and individual

HMRC tax reforms

taxpayers will be able to register, file, pay and update their information at any time of the day or night, and at any point in the year, to suit them. For the vast majority, there will be no need to fill in an annual tax return.” What this means for businesses is that, as HMRC also explains: “By 2020, most businesses, self-employed people and landlords will be required to keep track of their tax affairs digitally and update HMRC at least quarterly via their digital tax account. These changes will be introduced for some businesses from April 2018, and will be phased-in by 2020, giving businesses time to adapt.” This will happen, HMRC has argued, through a variety of digital tools, such as software or apps, with it emphasising the system will be “secure, light-touch and far less burdensome than the tax returns of today”. Not everyone is convinced, however. There are fears about the potential admin burden if “update” actually means small businesses will be forced to submit mandatory quarterly tax returns, although in January HMRC and the Treasury strongly denied this was the intention. Another key worry is whether this is little more than the thin edge of a bureaucratic wedge for small businesses. The suspicion – and fear – is whether this will mean businesses being eventually required not just to report quarterly but also to pay tax more frequently. For example, the Budget in March outlined plans from April 2018 to allow small business owners “to adopt pay-asyou-go tax payments”. ADMIN BURDEN Jo Nockels, senior training and technical communications manager at TaxAssist Accountants, has highlighted that, for VAT-registered businesses, moving to more frequent tax payments could have a significant effect on their cashflow. “Inevitably, business owners will borrow from the money put aside for their six-monthly or annual tax payments. But a quarterly, or possibly monthly, payment cycle would make this untenable. In contrast, some business

BY 2020, MOST BUSINESSES, SELF-EMPLOYED PEOPLE AND LANDLORDS WILL BE REQUIRED TO KEEP TRACK OF THEIR TAX AFFAIRS DIGITALLY AND UPDATE HMRC AT LEAST QUARTERLY VIA THEIR DIGITAL TAX ACCOUNT

WHAT THE GOVERNMENT IS PROPOSING

2016 From April All small businesses to have access to a digital HMRC account for allow them to submitting things such as Corporation Tax or VAT returns digitally

From JulyDecember The government to begin testing how digital reporting of accounts might work for small businesses

2017 July-December Launch of digital tax accounts to show taxpayers their tax liabilities all in one place

owners will favour the steady payments because they should avoid any large year-end tax bills,” she says. The disruption could be even greater for businesses trading under the VAT threshold, especially those not already using bookkeeping software. “The obligation to use software and report four times a year, will be a significant burden for small businesses to shoulder,” Jo forecasts. Other questions that remain, as yet, unclear include things such as what will be the deadline for quarterly submissions, will estimates be accepted and will the quarters need to be identical for all taxpayers or businesses? “Imposing digital tax accounts on those taxpayers still filing on paper or doing their records manually will be an enormous obstacle to overcome. Will HMRC bulk up the channels of support for taxpayers who need to use digital tax accounts but are not IT savvy?” Jo says.

2018 July-December Most businesses to start updating HMRC quarterly for income tax and National Insurance obligations through their accounting software

2019 Most businesses to start updating HMRC quarterly for VAT through their accounting software

2020 Most businesses to start updating HMRC quarterly for Corporation Tax through their accounting software

FIND OUT MORE The full Making Tax Digital report can be found online at gov.uk, then search “Making Tax Digital”.

July/August 2016 | salonfocus

Summer hair and beauty

DON'T LEAVE HOME

WITHOUT US SALONS CAN BOOST THEIR SUMMER REVENUES BY POSITIONING THEMSELVES AS ‘ONE STOP SHOP’ HOLIDAY ADVICE AND RETAIL DESTINATIONS. SALONFOCUS INVESTIGATES.

assport, tickets… salon. OK, probably only mega-rich jet-setters actually take their stylists on holiday with them. Nevertheless, as clients turn their attention to their summer holidays, there are real opportunities to be had for salons in terms of offering holiday hair and beauty advice and upselling retail.

As Debbie Elderton, owner of Arcana Salons in Milton Keynes, explains: “The summer season means clients are coming through the door for weddings, proms, pre-holiday hair and beauty treatments. May to August is easily as busy as the festive period in our salon.” “Clients are much more inclined to impulse-buy travel sized ‘checkout treats’ like treatment masques and sun sprays. Summer is a huge retail time for us. It’s a great time to get your social media pumped full of ‘#SalonSelfies’ to showcase hair-ups and colour makeovers, and also to advertise packages, linked sales and summer-sun advice,” she adds. “Salons sell some of the best sun, sea and scalp protectors, and often act as the 'one stop shop' when clients are coming in to get their hair done before their holiday. Many clients also need to visit after their holiday to correct the colour and the hair’s condition created by salt water, sun and sand,” agrees Mark Coray, past NHF president and owner of Coray & Co in Cardiff. “When you’re on holiday you’re going to have more photos taken of yourself, so you want to look good. So it is a good idea to advise clients to have their roots done, but it also makes sense for them to buy some product to stop the colour from fading. “Your hair is very much like your skin – the only difference being there’s no nerve ending in it, so it doesn’t hurt when it burns. But when it burns, it lightens, it bleaches, it dries out. So it’s all about moisturising and rehydrating. Then when they come back off holiday and looking very sun-kissed and blonde, clients will need colouring again and conditioning treatments,” he adds.

salonfocus | July/August 2016

WAXING AND PEDICURES “If the sun comes out, and because I have beauty as well, there will be a massive shift because people will be wearing fewer clothes. So they’ll have waxing and they’ll have pedicures rather than manicures, which would be more normal,” emphasises Ian Egerton, owner of The Stress Exchange in London. As staff – especially if they have school-age children – may be wanting to go off on holiday themselves over this period, it is vital to have your summer staffing rotas agreed and in place early, he also advises. At the same time, if staff are off, recognise that can be an opportunity for other team members, perhaps more junior employees who are still building up their column, says Debbie Elderton. “Coupled with a higher holiday-request period, absent team members means more incomegenerating opportunities for otherwise quieter staff and more overtime available all round,” she points out. PRODUCT RANGE Your product range is also important, emphasises Ian Egerton, highlighting, for example, that his product house, Aveda, has recently launched an SPF skincare product to be used on top of the usual daily moisturiser. “In my salon we have an education plan for clients that my team shares based on the products our product house has given us. So there will be the suncare and after-care and then there will be the work we will then need to do colour-wise when they get back from their holidays,” he says. “Coming into summer, people tend to be a lot more

Facts and figures

Mallorca The top holiday destination for Britons last year

12 million Number of Britons who visit Spain every year

80% Percentage of Britons who fail to apply enough sunscreen before going out in the sun

72% Percentage of Britons who admit to having been sunburned in the previous year Sources: TravelSupermarket,com; Foreign & Commonwealth Office; British Association of Dermatologists; Barclays

Summer hair and beauty

HAIR AND BEAUTY NEED TO WORK TOGETHER; YOU NEED TO BE ADVISING AND GUIDING CLIENTS ON BOTH SIDES. SO YOU NEED TO BE EXPLAINING ABOUT HOW SUN CAN DAMAGE HAIR AND THE VALUE OF UV-FILTER PROTECTION SHAMPOOS AND CONDITIONERS. ELKE HAYDEN, TAKE 2 HAIRDRESSING, TOTNES

condition-focused and more conscious about what products they are actually needing to use on their hair,” says Steven Scarr, of Steven Scarr Hairdressing in Coxhoe, Durham. “Definitely there is a lot of retail potential, providing you’ve got a good product. Another thing is that, for us, clients are so much more savvy these days. With social media, we have a lot of clients coming to me and asking about specific products. Most of the time they’re pretty clued-up before they even come into the salon,” he adds. “Hair and beauty need to work together; you need to be advising and guiding clients on both sides. So you need to be explaining about how sun can damage hair and the value of UV-filter protection shampoos and conditioners. It can also be helpful to give sensible sun-safe advice, such as wearing a hat or keeping your head covered and keeping out of the fiercest sun,” agrees Elke Hayden, owner of Take 2 Hairdressing in Totnes, Devon. POST-HOLIDAY TREATMENTS “If a client wants to get their hair bleached before they go on holiday – which isn’t really advisable – it can be a good idea to talk them through the risks from, say, chlorine in a swimming

pool, which could turn it green. Another useful area of advice is to encourage them to book in for a treatment when they come back, so the salon can rehydrate their hair, which may have got very dry on holiday,” she adds. And, finally, for salons like Elke’s, which are on the coast or located in holiday destinations, there is potentially a further opportunity: people on holiday looking to “top up” or maintain their summer hair and beauty regime. As she says: “For salons, like ours, in holiday destinations, we do see new clients coming in who are on holiday. So that can be another opportunity.”

IF NOTHING ELSE READ THIS... • Salons have an opportunity to position themselves as summer hair and beauty “one stop shops” • There is loads of potential for retail as well as haircare, skin and beauty advice • A good product range is important, as is awareness of the power of social media • Salons in holiday destinations themselves may often be able to tap into the visiting tourist market

TOP HOLIDAY ADVICE • Crack down on split ends. Suggest clients come into the salon to have a cut as close to their holiday departure as possible, as dry or split ends can be particularly prone to drying out in the sun. • Focus on conditioning. Suggest a client has a deep conditioning treatment a fortnight before they are due to go on holiday. Recommend they carry on conditioning their hair as much as possible during their holiday and encourage them to make an appointment back at the salon soon after they return either to restyle and repair or to top up on colour. • Keep covered. This is, of course, sensible sun skincare advice generally. But it also makes sense in the context of hair to keep your head covered as much as possible, whether with a hat or scarf. This is because UV rays from the sun can damage hair as much as they can skin, and this is especially the case if the client’s hair has been coloured or highlighted. • Get sun protected. Along with sunscreen, recommend to the client that they use UV filter shampoos and conditioners while on holiday, especially if you have such products within your own salon retail range. • Rinse off chlorine or salt. It should be common-sense but if clients rinse off with fresh water after being in the sea or the swimming pool, that is going to help protect their hair.

CONTRIBUTORS DEBBIE ELDERTON Debbie is owner of Arcana Salons in Milton Keynes

salonfocus | July/August 2016

MARK CORAY Mark is NHF past president and owner of Coray & Co in Cardiff

IAN EGERTON Ian is NHF vice president and owner of The Stress Exchange in London

STEVEN SCARR Steven is owner of Steven Scarr Hairdressing in Coxhoe, Durham

ELKE HAYDEN Elke is owner of Take 2 Hairdressing in Totnes, Devon

Gender neutral pricing

DOES YOUR PRICE LIST SHOW PRICES FOR LADIES AND PRICES FOR MEN?

YES

83.5%

16.5%

10%

20%

30%

WHICH SERVICES ARE PRICED THE SAME?

WET CUT AND STYLING

DRY CUT OR TRIM

COLOUR ROOTS TOUCH-UP

HIGHLIGHTS

68%

56%

FULL HEAD OF COLOUR

PERMING

20%

64%

salonfocus | July/August 2016

23%

47%

40%

50%

60%

70%

80%

90%

100%

GENDER

TELL US WHAT YOU THINK What do you think? Join us on social media. And turn over to find out how three NHF salons make being gender neutral work for them.

POLITICS

JUST 7% OF NHF SALONS SAY THEY ARE TOTALLY ‘GENDER NEUTRAL’ IN THEIR PRICING. SO IS THE INDUSTRY OUT OF STEP WITH THE MODERN WORLD, OR IS THIS JUST A REFLECTION OF WHAT SERVICES FOR MEN AND WOMEN ACTUALLY COST?

ow do you price your services? It should be a straightforward enough question but there is a growing debate, both inside and outside the industry, as to whether the traditional salon pricing structure of one set of prices for women and another for men is, in the modern age, still “fit for purpose”.

The BBC, no less, back in April highlighted how some salons are moving towards offering “gender neutral” pricing structures, speaking to Klara Vanova, the owner of Barbarette barber shop in Hackney, north London, who charges purely based on time and style. But is she right? Are salons that have different pricing structures for male and female clients being discriminatory, even if unintentionally, or is it just a realistic reflection of the time and cost of a female versus a male client? Is there an element of expectation too, with male clients perhaps less willing to accept the sort of prices their female counterparts often take for granted? To gauge how NHF salons felt about this issue, we surveyed nearly 200 members during March. And the results were striking. Nearly 84% of members who responded said they had distinct prices for men and women. Just 7% were strictly gender neutral, in that there was no gender difference in the cost of services.

However, a further 14% were gender neutral for “most” of their services and 40% had at least some services where the price was the same for men or women. GENDER NEUTRAL PRICE LIST Nearly 85% said the idea of switching to a gender neutral price list was not something they had even thought about. Wet cut and styling was the most likely to be priced differently for men and women, with just 20% of members saying they were gender neutral for this service, followed by a dry cut or trim (23%). Colour roots touch-up (68%) was the most common service not to have a gender bias in terms of pricing, followed by full head of colour (64%) and highlights (56%). Asked why salons felt it was OK to have a disparity between men and women, members were adamant it wasn’t because of any desire to overcharge women or under-charge men, it was purely a time/cost calculation. As one member put it: “Given that a long hair ladies cut and restyle with thick hair can take up to one-and-a-half hours and a deluxe blow dry 45 minutes, we think it is fair there should be a difference in gents to ladies because of the difference in time spent.” Nevertheless, the fact nearly a fifth (18%) of salons reported clients “occasionally” querying why services were priced differently for men or women appears to indicate that, in an age where gender equality is rightly considered the norm, this is an issue that, at least sometimes, is jarring with some clients.

July/August 2016 | salonfocus

Gender neutral pricing

CLEAR CUT HOW DOES GENDER NEUTRAL PRICING ACTUALLY WORK? SALONFOCUS SPOKE TO THREE MEMBERS TO FIND OUT.

TOBY DICKER IS FOUNDER OF THE CHAPEL GROUP OF SALONS. THE GROUP COMPRISES FOUR SALONS IN ISLINGTON, TUNBRIDGE WELLS, SEVENOAKS AND VERBIER IN SWITZERLAND. THE CHAIN HAS BEEN GENDER NEUTRAL IN ITS PRICING SINCE OPENING IN 1997.

‘CONSUMERS ARE VERY WARY OF HIDDEN PRICES, HIDDEN EXTRAS, SO IT IS IMPORTANT SALON PRICES ARE TRANSPARENT’ We’re gender neutral in the sense that everything is simply charged by the hour. In the main, gentlemen will tend to have a shorter appointment, and so end up being charged less, but it is completely transparent and just in the nature of the business; men do tend to average out less. But if someone wants to spend two hours with us, they will be charged that time, based on the hourly rate of the stylist who is working with them. People, we find, are very happy to be charged this way because it is so easy to understand and, to my mind, begs the question, why has it ever been any other way? Customer service is what’s important. You choose what restaurant to go to not so much because you’re hungry – in which case you’d probably just rustle up something yourself or grab something on the go – but because of the service or experience it offers. BASED ON TIME To an extent I do think, as an industry, salons have missed a trick here. When it comes to price there’s often a race down to the bottom, with clients using discount sites and always looking for the next deal. But the way we do it is purely based on time. We simply calculate how long an average appointment or service is going to take, and then you choose your stylist, whose price is also time-based, and could be anything from £39 an hour up to £100 an hour. So, if a service is going to take two hours and your stylist is £49 an hour, you know your bill is going to be £98 and then you can decide which of the stylists you want to go to to suit your budget. We also do not have a junior system – we have younger stylists who we mentor but they’re still working as stylists, we don’t differentiate to that extent. It is all about picking the price point that suits you. Consumers are very wary these days of hidden prices, hidden extras, so it is important salon prices are transparent. We’ve simply tried to create a system that’s much clearer for the client but can also allow us to budget and make forecasts. When you look at some salons and they’ve got different prices for 20 different cuts, colours or services, and then different prices again for men and women, it is just ridiculous. I am certain this is going to become more common. In fact, we’ve been approached by several salons who have asked us to help them to make the transition to a pricing structure similar to ours.

salonfocus | July/August 2016

THE CHAPEL: CHARGES BY THE HOUR, IRRESPECTIVE OF GENDER

Gender neutral pricing

DAVID POPHAM FOUNDED POPHAM HAIRDRESSING IN 1981 AND THE CHAIN OF TWO SALONS IN OXFORD IS NOW RUN ON A DAY-TO-DAY BASIS BY HIS WIFE SHIRLEY. BOTH SALONS HAVE BEEN GENDER PRICE NEUTRAL SINCE THEY OPENED.

‘WOULD WE ACCEPT DIFFERENT PRICES FOR MEN AND WOMEN IN ANY OTHER SERVICE? NO.’ I think our industry should have done this a long time ago. Before I opened the salon I worked for Sassoon in the US and so when I came over here I wanted to try different things, some of which worked and some of which didn’t. For example, I tried initially to make the salon no-smoking (and this of course was way before it became law), but there was absolute outrage. I also experimented by showing VAT separately on my price list but, again, clients did not like that. But gender neutral pricing was something I found clients did like; it stuck. To me, it just felt the normal thing to do. For my clients, too, it’s normal, it’s not something we tend to get comments about either way. After all, would we accept this with any other service? Would we accept different prices for men and women at, say, the dentist? Of course not. Even car insurance firms can no longer charge women lower premiums just because they’re women drivers. If you look at our price list (and it’s freely available on our website, and pictured overleaf) it’s simply divided into cutting, blow dry, KeraStraight or colouring and then either based on the stylist or team, hair length or (in the case of colouring) the specific service. CHANGING EXPECTATIONS It’d be nice to think we’ve been really progressive in doing this and that eventually the rest of the industry will catch up, but I do think in part it’s going to be down to hairdressing salons changing expectations, especially those of male clients. You still get men who think £10 for a cut is steep. Many men expect to get a cut at a very cut-price rate and have it done very, very quickly. That is still a commonplace assumption. Hairdressing is the anomaly – I think, hope, it will change, but I also think there will be resistance. The worry for salons is they will either have to put up their men’s prices or reduce their women’s prices. If they reduce their prices for women, they will end up with a lower bill and the risk of a net loss as a result. If they raise their prices for men, the men will walk. So either way it is going to be a tough call for many salons. I certainly wouldn’t like to be in that situation today. Having said that, much like someone smoking in the chair would be inconceivable now, I do think gender-specific pricing is an anomaly that will, in time, disappear. I think, eventually, gender neutral pricing will become the norm.

POPHAM HAIRDRESSING: CLEARER PRICING SYSTEM

July/August 2016 | salonfocus

Gender neutral pricing

SARAH AMOS HAS RUN MINK HAIRDRESSING IN TUFNELL PARK, LONDON, FOR THE PAST ELEVEN-ANDA-HALF YEARS.

‘I THINK MORE SALONS WILL, IN TIME, HAVE NO OPTION BUT TO DO GENDER NEUTRAL PRICING’ Mink is a small salon; I’m here on my own for half the week and then I have three stylists for the other half. It has been a tough couple of years but things have really started to pick up of late and it’s going really well. We offer a range of services and just price them by the description of the service, for example wash, cut and blow dry or just wet cut. I’ve always done it this way, and in fact the salon I worked in before I opened Mink did it too, so I wouldn’t do it any other way. MEN’S CUTS I can’t understand why you would charge less for a man’s haircut or more for a woman’s just because of their gender. If a man’s hair is long, it can often end up taking longer to do. Or if a female client decides she doesn’t want to have a blow dry, then it’s not going to take as long to do. I do think more salons will, in time, have no option but to do this. You occasionally hear comments from clients about how expensive some price lists are in other salons, with sometimes different prices for short or medium cuts, which is just ridiculous. If someone has a thick head of hair that is naturally going to take longer to do. Although you can understand how they might not want to add £10 to the bill. There is one question that springs to my mind, however. Does advertising specific men’s services and prices make it more likely a man will feel comfortable in coming to your salon? If there’s no distinction in price could it, subliminally, put men off? I don’t know the answer, never having priced that way myself, but it’s perhaps a question worth thinking about.

salonfocus | July/August 2016

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W W W. N H F. I N F O / P H O T O G R A P H I C

P H OTO G R A P H I C S T Y L I ST OF THE YEAR 2016 N ew to t h e i n d u st r y o r ye a r s o f ex p e r i e n ce? There’s a category for everyone

Britain’s Best 2016

BE A WINNER AS THE NHF LAUNCHES BRITAIN’S BEST, NHF TRAINER PENNY ETHERIDGE, OF RADIANT HAIR CONSULTANCY, LOOKS AT HOW COMPETITIONS CAN HELP YOUR SALON BUSINESS GROW. OVERLEAF, HOW TO ENTER. Penny Etheridge

ll salon owners will recognise growing their business relies upon increased recognition for their services, their quality, their business innovation, their décor, and their professionalism.

That recognition comes in part through the day-to-day client experience, but one of the best extra ways to boost your salon profile and “brand awareness” is to enter (and ideally win) an industry award or competition. Here’s my five reasons why I think winning awards and competitions can play an important part in growing your business.

AN INDUSTRY AWARD GIVES A SEAL OF APPROVAL TO YOUR COMPANY. IT IS A SIGN OF QUALITY FOR POTENTIAL CUSTOMERS AND CLIENTS

1) TEAM MOTIVATION Awards recognise the hard work and achievements of your employees. So winning or even just becoming a finalist can help boost staff morale and improve motivation. I found when entering awards that my team became more focused on what was great about our company and there was a clear sense of pride in being part of it. We would always include the team in developing our award entry, showing them the portfolio in progress and inviting feedback and suggestions. Key staff members would be invited to any awards ceremony as a thank you for their hard work. The team bonding was evident at these events as well as having a great night out!

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2) UNDERSTANDING YOUR BUSINESS If you’re entering an award that’s about your salon business, simply going through the application process can often force you to look at your business from a different perspective and really open your eyes to what you have achieved and what you need to work on. Having to provide evidence on entry criteria (perhaps showing things like innovation, growth, customer service, investment in people and strategic thinking) can help you to break down the different elements of what you’re doing, and what you’re doing well or could be doing better. This knowledge can only strengthen your company’s performance. I found the process of compiling an awards entry often as beneficial as the final result, and a valuable tool to developing growth within our business strategy. 3) ATTRACTION AND RETENTION OF CLIENTS An industry award gives a seal of approval to your company. It is a sign of quality for potential customers and clients, so award participation can form an important part of any new client attraction strategy. Being able to say you are an award-winning salon sends out a hugely positive signal to existing customers that they have made the right choice in choosing you for their hair and beauty needs. 4) BRINGING ON NEW TALENT By proving, through awards, that you are one of the best in your field you can better attract the talent you need to push your business forward. Improved employee morale will also help to attract and retain new employees. In my salon our staff retention was always strong; people liked feeling they were part of the best.

DEREK COOKNELL PHOTOGRAPHY

MARCUS, OF SPIRIT HAIR TEAM IN YSTRAD MYNACH, WON MALE FASHION LOOK – ON TREND (STUDENTS/TRAINEES) AND SHORT BACK & SIDES WITH BEARD TRIM LAST YEAR. Marcus Feeley

5) PUBLICITY AND PR If you get nominated for or win an award it is vital to make the most the most of it, especially to maximise your PR and social media exposure. So, even if you’re very busy in the salon, put some proper time aside to ensure you’re getting the publicity and public awareness you want on the back of your win. This can also, of course, be a great way of boosting the team morale and spirit. Make sure you update all your marketing materials with the award logo. This should include your window, business cards, website, pricelists and your company email. Awards celebrate hard work and success and are great PR opportunities. It’s fantastic to be recognised, so it’s important to make sure that people know what your business has achieved. Consider, too, throwing a post-awards party at the salon, inviting press, clients, other local businesses and, of course, the team! FIND OUT MORE Turn over to pages 26-27 to find out all you need to know about how to enter this year’s Britain’s Best.

‘BRITAIN’S BEST HAS GIVEN ME A 100% BOOST’ For me, entering Britain’s Best was simply about getting out of the salon and trying something different. I’m young – I’ve been a senior barber for five years – and I want to make my name! It was a brilliant experience, really inspirational, just being able to see everyone else’s work. HUGE HONOUR I was so shocked when I realised I had won. I’d seen MK, who was one of the judges in my category, at Salon International and always admired his work, so it was huge honour. I was not expecting to win at all – for me entering was more about just the experience. I didn’t think I would even be placed, let alone win, so to come first was amazing. It’s been such a big confidence boost. When you come back from being in a competition the way you think is completely different – I think I’m now much more likely to try things out and push myself. It has helped my profile too, 100%, and I think it’ll really help my career.

July/August 2016 | salonfocus

Britain’s Best 2016

HOW TO BE

THE BEST ENTRIES ARE NOW OPEN FOR THIS YEAR’S BRITAIN’S BEST. WANT TO BE UP THERE WITH THE BRIGHTEST TALENT BRITAIN HAS TO OFFER? HERE’S WHAT YOU NEED TO KNOW. nd they’re off. The NHF’s flagship national competition, Britain’s Best, is now open for business. Here are this year’s 11 categories:

• Blow-dry – Consumer Fashion Style (students and trainees). Entry price: £15. • Blow-dry – Consumer Fashion Style (open to all). Entry price: £20. • Male Fashion Look – On Trend (students and trainees). Entry price: £15. • Male Fashion Look – On Trend (open to all). Entry price: £20. • Hair-Up – Glamorous Night on the Town (students/trainees). Entry price: £15. • Hair-Up – Glamorous Night on the Town (open to all). Entry price: £20. • Fantasy Total Look (open to all). Entry price: £20. • Female Fashion Look – On Trend (open to all). Entry price: £20. • Bridal Make-up (open to all). Entry price: £10. • The Bride – Conventional or Non-Conventional (open to all). Entry price: £20. • Colour of the Day (open to all). Entry price: £10. To be considered for Ladies’ Champion 2016 you must enter both the Blow-dry – Consumer Fashion Style (open to all) and Female Fashion Look – On Trend (open to all) categories. To be considered for Men’s Champion 2016 you must enter both the Blow-dry – Consumer Fashion Style (open to all) and Male Fashion Look – On Trend (open to all) categories. Spectators will also be very welcome – we want to hear you cheering on your team and favourites! Entry on the door for all spectators will be £10. To enter, simply go online to britainsbest.me. Here you will also be able to find full competition rules and terms and conditions as well as a timetable for the day.

IMPORTANT BASIC STUFF What: Britain’s Best 2016 Where: British Motor Museum, Gaydon, Warwickshire When: 13 November, 2016 Doors open: 9am. But make sure your model is ready to take to the floor one hour before your competition is due to start. Where to find out more: britainsbest.me

Britain’s Best wouldn’t happen without the proud backing, and commitment, of its sponsors. So a very big thank you to our 2016 Britain’s Best sponsors.

‘I FEEL MORE CONFIDENT AND IN CONTROL’ Ruben Rodriguez, stylist at Ross Charles Hairdressing in York, won in the Blow Dry Consumer Fashion Style (open to all) category at Britain’s Best last year. Why did I decide to enter Britain’s Best? Why not?! It was a new experience for me. I am from Spain and had not had this sort of opportunity before, so I just thought, why not try? I remember the organisers calling my name so well; I was very nervous but also excited. When they announced I’d won, I called my mum! I felt it was a great achievement as, after only ten months in the UK, I had won in Britain’s Best. Personally, I now feel more confident and in control. Careerwise, it has definitely enhanced my CV. It’s has given me a unique position in the salon, but the salon has also benefited as we have been able to market the success of winning the award. I will be planning to enter again this year – I love the atmosphere!

CLICK AND COLLECT Don’t forget, the winners of this year’s prestigious Photographic Stylist of the Year will also be announced at Britain’s Best on 13 November. This year’s competition has four categories: • Male and Female Fashion Look (students and trainees) – judged on a single image • Male and Female Fashion Look (open to all) – judged on a single image • Male and Female Fashion Collection (open to all) – judged on a collection of four images • Male and Female AfroCaribbean Look (open to all) – judged on a collection of four images The deadline for entries is Friday 18 September, so don’t delay! Again, go to nhf.info, under “Events” and then “Competitions”, to find out full details and a range of hints, tips and advice.

Xxxxxx Minimum Wage National

P R O C E SS O F D E D U C T I O N IF AN EMPLOYEE IS ON THE MINIMUM OR LIVING WAGE, YOU HAVE TO BE VERY CAREFUL HOW YOU MAKE DEDUCTIONS FROM THEIR PAY. JO NOCKELS, SENIOR TRAINING AND TECHNICAL COMMUNICATIONS MANAGER AT TAXASSIST ACCOUNTANTS, EXPLAINS WHAT YOU CAN AND CANNOT DO. Jo Nockels

magine the scenario. You’re (naturally) very proud of your salon and you want your staff all to look professional. So you require all new staff members to pop down the high street to buy, out of their own money, black trousers and matching black T-shirts.

You can probably guess what happens next. If those employees are on or near the National Minimum Wage or (if over 25) the National Living Wage, and you have stipulated within their contract this is something they have to have, you’re now risking an expensive visit from HM Revenue & Customs. This is because, after deducting the cost of these purchases from their salaries, chances are these staff are now effectively taking home less than the legal minimum. Making deductions from employee pay is something of a minefield for employers when their employees are on or near the National Minimum Wage or National Living Wage. This is because you’ve got to make absolutely sure whatever you’re deducting is not taking your employee below the legal threshold. So, how’s this all work? Generally speaking, if you make deductions from an employee’s pay, these normally reduce their pay for the purposes of the National Minimum or Living Wage (in other words there is a risk of them dropping below the legal minimum). Crucially, this includes any deductions for work-related expenses such as uniforms, tools or equipment. WRITTEN AGREEMENT You can only make a deduction from their pay if: • it is required or allowed by law, for example National Insurance, income tax or student loan repayments • the employee agrees in writing to the deduction • the employee’s contract of employment says you can make a deduction • it is to recover a previous overpayment of wages (although this can be a complicated area and it is probably a good idea to take professional advice first) In other words, if you’re looking to make a deduction for uniforms or tools, then this should be set out in their contract of employment (and, if you offer one, their staff handbook) or agreed in writing beforehand. What’s more, even if you’ve not physically taken money from their pay, if it’s money they’ve been asked by you to spend – like our T-shirts and trousers example above – HMRC will still

salonfocus | July/August 2016

consider that a deduction for minimum or living wage purposes. A much safer alternative, therefore, in this scenario is for you, as the employer, either to pay for these items directly yourself or be very sure you are “topping up” their salary to cover these initial (or ongoing) expenses and so ensuring they remain above the legal pay floor. It can also be sensible to review your payroll software in this context. Some payroll products can actually prompt you if they detect an employee’s pay has fallen below the legal minimum. Outsourcing your payroll to a professional payroll bureau or accountant can be another solution, though it is still a good idea to keep vigilant yourself. WAITING TIME Finally, it’s worth being aware of the issue of “waiting time”. This isn’t technically a deduction, in that no money is being taken from the employee, but it can be an equally problematic wage-related area for salons, and one that can catch you out. Waiting time can be where you’ve asked staff regularly to come in early, perhaps, say, 15 minutes before the salon opens. They’re not technically working yet but they’re still “on duty” for you, and therefore this time needs to be factored into your calculation of their total take-home hourly rate. Similarly, if your staff are standing around with little or nothing to do, if you require them to stay on “standby”, again, the employee should be paid for this time. It does not matter whether they are actually doing any work, the important point is, if you don’t pay them for this, HMRC may well calculate their hourly rate has fallen below the legal minimum. So be aware and take care!

UPDATED HANDBOOKS The NHF has recently updated its standard staff handbooks and contracts for members to clarify this point about waiting time and the minimum and living wage. New copies are being sent out to members over the summer, but if you have not received one, please ring head office on 01234 831965. The NHF’s Guide to the National Minimum Wage has also been updated to include the National Living Wage and what counts as waiting or working time and the issue of deductions.

IF NOTHING ELSE READ THIS... • Wage deductions have to be agreed in writing or included in the staff contract • Even if the employee has paid for the item themselves, if you’ve demanded it as part of the job, this will be counted as a wage deduction • For employees on or near the minimum or living wage you need to be very careful this deduction does not then take them below the legal minimum • If you ask employees regularly to come in before the salon opens or have them on “standby”, this time must be paid

Special report into pensions

STAGING COACH

MANY SALONS ARE NOW RECEIVING LETTERS ABOUT THEIR PENSIONS AUTO-ENROLMENT ‘STAGING DATE’. BUT WHAT IS IT ACTUALLY LIKE TO GO THROUGH THE PROCESS? OPENING A SIXPAGE SPECIAL REPORT, SAM KENDALL, GROUP CO-ORDINATOR OF THE GREAT HAIRDRESSING SALON CHAIN, TELLS ALL. Sam Kendall

reat Hairdressing is a four-salon chain located across Sussex and Kent. We have Great Hairdressing salons in Eastbourne and Maidstone, then Hoopers in Tunbridge Wells and finally a Great Hairdressing franchised salon in Heathfield. Across the three directly owned salons, we employ 32 people.

Pensions auto-enrolment really first came on to my radar when I got a notification through from the NHF and then notice from HM Revenue & Customs that our staging date was going to be in June 2015. My initial thought was simply to leave it to our accountant, but she quoted us a figure of £2,500 to get everything set up which, to me, seemed like a lot of money. So it was at that point that I decided to look into the NHF scheme, and I’m very glad I did. Overall it took about two months, on and off, to get everything put in place, so it was really quite quick and straightforward. PAY PERIOD I had an initial one-to-one meeting with Bryan Stott, the adviser from Wren Sterling (the NHF’s pension scheme provider). He was very happy to come out to the salon and talk me through the process, what we would need to do and the background to pensions autoenrolment, which was very helpful. Probably the biggest issue we had to deal with was our pay reference period,

or the fact that we pay people on a fourweekly as well as on a monthly basis. That means that, on occasions, people are being paid in the middle of a month, which can make things tricky in terms of the dates when they make contributions to the pension scheme. But Wren Sterling was able to deal with it by combining the pension contributions within both payrolls. The scheme is completely compatible with our payroll, so it is just a couple of extra buttons and perhaps means an extra 20 minutes on the accounts each month. The assessing for eligibility was very straightforward, as it was all automatic. It was just a question of making sure the system had the full details of each staff member – first and last name, date of birth and age, National Insurance number and so on. You just inputted the data into the portal.

As an employer, yes, it is an extra cost but when you add up the contributions over the year, it’s not a huge amount. But, of course, it is something we’re going to need to budget for from now on. For me, the main thing has simply been making sure that the information we’re giving over is correct. So it is important, if you don’t feel you fully understand something, to ask questions of your pension scheme provider. But we have found it very reassuring that Wren Sterling has been with us every step of the way. They are always happy to answer any questions or come out to meet us face-to-face; they’ve been absolutely fantastic, in fact.

TEMPLATE LETTERS There are a lot of things that you need to do, things you have to abide by. For example, you have to send out letters to individual employees explaining what is happening, what it means for them and what their options are. But these are standard letters, so it is just a question of printing out the template letters from the portal. However, the system does also make them personalised, and so they have the employee’s name on them as well as the details of the employer. The vast majority of the team is being auto-enrolled. I think we’ve had maybe one or two decide to opt out but, for most of them, they recognise it is a good idea to be putting some money aside. SAM KENDALL AND TEAM MEMBERS: THE SALON CHAIN JOINED THE NHF PENSION SCHEME LAST YEAR.

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THE NHF PENSION • The NHF pension scheme offers guaranteed acceptance for hair, barber and beauty salon owners. • It includes free, easy-to-use software and a dedicated autoenrolment helpline. • It is open to both NHF and nonNHF member salons. • For members, the cost is £295 plus VAT, with an annual governance fee of £65 plus VAT once the scheme has gone live. For non-members it is £395 plus VAT, with an annual governance fee of £105 plus VAT. • The scheme is a “master trust” and has met operating standards set by the Institute of Chartered Accountants in England and Wales.

PHOTOGRAPHY: POST PHOTOGRAPHIC

For more information, go to nhfpensions.co.uk, email enquiries@nhf.info or speak to the NHF team on 01234 831965.

THE VAST MAJORITY OF THE TEAM IS BEING AUTO-ENROLLED. I THINK WE’VE HAD MAYBE ONE OR TWO DECIDE TO OPT OUT BUT, FOR MOST OF THEM, THEY RECOGNISE IT IS A GOOD IDEA TO BE PUTTING SOME MONEY ASIDE FOR THEIR RETIREMENT.

July/August 2016 | salonfocus

Special report into pensions

FULL TIMERS

DUTY CALLS MOST SALONS NOW RECOGNISE THEY NEED TO SIT UP AND TAKE NOTICE OF PENSIONS AUTO-ENROLMENT. BUT WHAT DOES IT MEAN FOR CHAIR RENTERS OR PART-TIME STAFF? SALONFOCUS REPORTS.

any salon owners will have seen the TV, online or press advertisements of “Workie” (above) urging them not to ignore the arrival of compulsory workplace pensions. Most small salons will need to set up, and auto-enrol their employees into, a workplace pension over the next year to 18 months.

The good news is that, according to The Pensions Regulator (TPR), around 96% of the first wave of small employers required to put their staff into a pension have now complied with the law. It has also suggested that, for the most part, employers think pensions auto-enrolment is good for their staff and,

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so far, some 160,000 employers have enrolled more than six million staff into a pension. Nevertheless, as the NHF has long been highlighting, salons should not stick their heads in the sand and hope to ignore pensions auto-enrolment. Pensions auto-enrolment is a legal change, and you can be fined if you are found not to be enrolling employees when you should be. What’s more, it can take as long as 12 months to put in place all you need to ensure you are compliant – for example, ideally you should have your pension scheme in place six months before your staging date. You also need to leave yourself ample time to assess the eligibility of your employees, choose and set up your scheme, communicate the change to staff and to make sure your payroll software is suitable for auto-enrolment and compatible with your pension scheme. Having said that, the actual amount of time you need to devote to doing all of this may not be as great as you fear. Many small employers, according to TPR, have found it took them around ten hours over the course of the 12 months, so less than one hour a month. For salons, however, the picture can be complicated by the fact many will have chair renters as well as part-time (often Saturday) staff on their books. So, how does pensions auto-enrolment work for these two categories of people?

PA R T TIMERS

CHAIR RENTERS

CHAIR RENTERS Nominally, of course, chair renters are self-employed and so will not be eligible for pensions auto-enrolment. However, it may not be quite as simple as that. Even if someone is not eligible, if they are deemed to be a “worker” in the context of auto-enrolment, then you may still have what TPR describes as “employer duties” towards them. As TPR explains: “Even if someone who works for you considers themselves self-employed, you may still have employer duties. One example of this type of situation may be hairdressers who rent space in a salon and consider themselves self-employed – the salon owner will need to decide whether or not they are their employer for the purposes of automatic enrolment.” For example, a chair renter may be classified as “a worker” in this context if you expect them specifically to carry out work for you or if you provide tools to enable them to do that work, or if you carry the can financially for their faulty work. “You should make and keep a record of how you reached a decision that someone is or isn’t a worker. If you decide you are not an employer and you do not have duties you should use our ‘Duties Checker’ (which you can find online at thepensionsregulator.gov.uk) to let us know this is the case,” TPR adds. PART-TIME STAFF What, then, about part-time or Saturday staff? An eligible worker in terms of pensions auto-enrolment is someone who is aged over 22 and is earning more than £833 a month or £192 a week. For staff who therefore either earn under this threshold or who are under 22, TPR offers the following advice: “These

Special report into pensions

PENSIONS AUTOENROLMENT IS A LEGAL CHANGE, AND YOU CAN BE FINED IF YOU ARE FOUND NOT TO BE ENROLLING EMPLOYEES WHEN YOU SHOULD BE

staff must still be given the option to be put into a pension scheme. Even if no staff are eligible, employers must still complete and submit a Declaration of Compliance. The Declaration of Compliance shows TPR what you have done to meet your duties and must be completed within five months of your staging date.” FIND OUT MORE The NHF has a guide to pensions for members, The NHF Pensions auto-enrolment guide, available online at nhf.info. The NHF’s pension scheme provider, Wren Sterling, will also be running a series of webinars over the summer explaining what salons need to do once they’re registered on to a pension scheme. Details of these will be made available on the NHF’s website.

July/August 2016 | salonfocus

Special report into pensions

LIFE AFTER

STAGING SOME 500,000 EMPLOYERS WILL REACH THEIR PENSIONS AUTOENROLMENT ‘STAGING DATE’ THIS YEAR. BUT WHAT HAPPENS NEXT? JO NOCKELS, SENIOR TRAINING AND TECHNICAL COMMUNICATIONS MANAGER AT TAXASSIST ACCOUNTANTS, EXPLAINS. Jo Nockels

lot of salons are, understandably, focused at the moment on ticking all of the boxes ahead of their pensions auto-enrolment staging date. But it is also important to recognise that, once that staging date has come and gone and your pension scheme is up and running and you’ve submitted your Declaration of Compliance to The Pensions Regulator, pensions autoenrolment is an ongoing process, with ongoing duties. Here’s some of the important things salons will need to continue to think about in this new pensions landscape.

salonfocus | July/August 2016

ASSESSING YOUR WORKFORCE You will need to have assessed your workforce in the run-up to and at their staging date, to check for eligibility. As The Pensions Regulator has highlighted on the previous page, even workers who are not so-called “eligible jobholders” will still have a right to opt into your pension scheme or a right to join it. But, especially given that many salons have a high turnover of staff, this assessment process will need to be something you continue to do on an ongoing basis. You will have to perform an assessment not just at your staging date but at every pay period to categorise your staff in the context of pensions auto-enrolment eligibility. The good news, however, is most payroll software will be capable of doing these, running ongoing assessments for you. But it is important to make sure you know whether or not your particular software can do this and how it will all work.

IF NOTHING ELSE READ THIS... • Pensions auto-enrolment will mean ongoing duties, beyond your staging date • These will include assessing employees, keeping staff informed and submitting data • Employee and employer contributions are set gradually to increase after 2018

CALCULATING CONTRIBUTIONS Employer and employee contributions under pensions auto-enrolment will gradually change. Until April 2018 the minimum employer contribution will be 1%, with the employee also paying in a minimum of 1% (so 2% in total). After this date, this minimum employer contribution will rise to 2%, with the employee then paying 3% (so 5% in total) until April 2019. And from here onwards it will be a minimum of 3% for the employer, with the employee paying 5% (or 8% in total). So this is something you will need to keep tabs on. Be aware, too, pension contributions should attract tax relief for the employee, although how this is given to the employee may vary depending on the pension scheme you have chosen. If in doubt, speak to your pension scheme provider. It is important to make sure you pay the correct amount of pension contributions to the pension scheme by the relevant deadline. Some schemes may have the option to set up a direct debit. Again, check the requirements with your pension scheme provider.

Special report into pensions

SUBMITTING DATA TO YOUR PENSION SCHEME

KEEPING STAFF INFORMED Under pensions auto-enrolment, you have a legal duty to write to each member of staff who is either being auto-enrolled or not being enrolled. Initially this will need to be done within six weeks of your staging date. But, again, as staff leave and join this is likely to be an ongoing process. This will need to be something done within six weeks of an employee’s enrolment date. Bear in mind, The Pensions Regulator has template letters you can use. Some payroll software systems can also produce standard letters for you.

Once you’re up and running with a pension scheme it stands to reason you’ll need to be regularly sending and updating data. The methods and data requirements will vary, so you’ll need to check with your particular pension provider. Many schemes have online portals that you can login to and, from there, input your figures. Some of the more sophisticated payroll products can submit the data straight to your pension provider with the click of a button – all from within the payroll software. So, have a word with your payroll provider. One word of warning, however, is if you’ve historically been using HM Revenue & Custom’s free payroll software, Basic PAYE Tools. This software allows you to perform most payroll tasks, including working out the tax and National Insurance for your employees and sending this information to HMRC. However, it’s not really equipped to deal with the new workplace pension rules. The Pensions Regulator has issued this advice about Basic PAYE Tools: “If you manage your payroll without any software, or use HMRC’s Basic PAYE Tools, you’ll have to set up your own process to assess your staff and calculate contributions. You’ll also need to find out from your pension provider how you’ll provide this information to them.” So you may need to revisit who or what provider is going be best for you in this context.

RECORD KEEPING Just like your other business records, you must keep records of your autoenrolment activities. This needs to include the names and addresses of staff enrolled, records of when contributions were paid, staff optin notices, pension scheme reference or registry numbers and information sent to the pension provider. These records must be kept for six years and opt-out notices for four years.

ABOUT TAXASSIST ACCOUNTANTS TaxAssist Accountants (taxassist. co.uk) is an NHF affiliate member and has 282 locations across the UK. It provides services to more than 60,000 clients, specialising in small businesses, can look after the day-to-day running of payroll and administering of pension schemes, and has been working with the NHF’s pension scheme provider, Wren Sterling, on pensions auto-enrolment compliance for salons. For a noobligation, free initial consultation, contact TaxAssist Accountants on a unique freephone number for NHF members, 0800 523444.

Salon technology

FIND OUT MORE Retail Secure can be found at retailsecure.co.uk or 0333 320 8848. Retail Secure is also offering a 10% discount on its products to NHF members.

TARGET SECURED

BACK IN MARCH, SALONFOCUS HIGHLIGHTED THE PERILS OF HAVING AN ‘OPEN’ WI-FI SYSTEM FOR CLIENTS. OUR WARNING PROMPTED ADRIAN HANLON, OWNER OF ONE STEP AHEAD IN DODDINGHURST, ESSEX, TO TAKE ACTION.

’ve run One Step Ahead for the past 28 years. We’re a rural hairdressing salon; we’re not big – we have five staff – or flash but we do pride ourselves on providing an excellent service.

I only recognised we might have an issue with our Wi-Fi when I read about it in salonfocus. Because there’s no other signal in the salon we were constantly being asked by clients if they could hook up to our Wi-Fi. We tended just to give them the code and let them get on with it. Friends of staff would come in and they, naturally, also let them use the Wi-Fi. But when I read the article it dawned on that what we were doing might be a bit precarious. I had also had a few people tell me that just giving out your code or password was not a great idea. Think about it, every time you hand out your Wi-Fi code you are potentially letting someone into your whole salon system. Even if it’s just friends of your staff, that’s still a potential risk. PLUG AND PLAY I rang Retail Secure a few days later and within a week it was all set up. So it was a quick turnaround. It was also really easy to do; it’s essentially just “plug and play”. They send you a bit of kit which you plug into your router and

salonfocus | July/August 2016

then a couple of emails showing you how to adjust your settings, and off you go. Everyone, including me, now logs into the Wi-Fi through Retail Secure. Clients coming into the salon just need to look up the Retail Secure “Free Wi-Fi” icon on their phone, register and log in. Next time they come into the salon it then automatically logs them in, so it is completely hassle-free for the client. CARD SECURITY I’ve also connected our Wi-Fi card machine, as all the data from it was also going through our router. This is important because it means, when I now fill in my PCI (Payment Card Industry) security compliance form I can say it is secure. Previously I was getting charged for not being secure, but now I can tick that box too. Ten years ago you’d have said ‘who is going to be looking at me, we’re only a small salon’. Nowadays it’s not going to be someone coming into the salon to rob you, it’s much more likely to be someone in another country completely trying to get in through your computer. Including the PCI service, it’s costing me £50 a month plus VAT, but it is real peace of mind to know we’re now completely secure. If I just used the Wi-Fi service it would be £20 a month plus VAT although, as an NHF member, I also get a discount. So, why wait for a problem to happen?

Facts and figures

56% NHF members who now offer Wi-Fi to clients

50% Percentage of UK small businesses that admit to having “no plan” to deal with a data breach

£310,800 Estimated average cost of a data breach for a small business Sources: NHF members’ survey; Experian; Department for Business, Innovation and Skills

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Payments technology

F U T U R E PROOF MANY SALONS ARE SEEING GROWING DEMAND TO PAY BY CARD OR MOBILE. NIGEL HYSLOP, PRESIDENT AND MANAGING DIRECTOR UK OF GLOBAL PAYMENTS, TALKS SALON OWNERS THROUGH THE VARIOUS NEW PAYMENT TECHNOLOGIES. Nigel Hyslop

The payments revolution is coming your way. The UK is increasingly becoming a cashless society, with the industry body Payments UK in May predicting that the use of debit cards will overtake cash payments by 2021.

and the technological demands are no different to those for normal card transactions. Any debit or credit card enabled with contactless technology can be used, as well as a number of other devices, including stickers, key fobs, wearable devices such as watches and wristbands, and mobile devices.

To that end, even if most of your clients still prefer to pay by cash, it makes sense as a salon to be ready, willing and able to accommodate the new, increasingly popular payment methods coming through.

MOBILE PAYMENTS Since the introduction of Apple Pay in the UK in July 2015, mobile payments have increasingly gained in popularity amongst shoppers. So far, Apple Pay has not been as widely used as initially anticipated; however, as more and more individuals upgrade their iPhones and as other smartphone providers, such as Samsung and Sony, launch their own payment apps, we expect to see an increase in the number of customers wanting to pay with their mobiles. Contactless – whether card or

CONTACTLESS PAYMENTS For payments below £30, contactless is becoming increasingly popular, and is especially valuable for barber shops and salons offering retail products. Most payment terminals accept contactless cards via what’s called “near-field-communication” technology,

salonfocus | July/August 2016

mobile – can serve different needs for different salons. For example, for a busy barber shop typically charging around £10 per cut and serving a high turnover of customers during peak times, contactless is the perfect solution for reducing queue times, as these transactions allow customers to pay in a matter of seconds. Contactless can also work for salons processing smaller retail purchases such as shampoo or accessories. INTEGRATED PAYMENT SYSTEMS Larger salons and barber shops have come to understand the importance of integrated payment systems, which link card terminals to the Electronic Point of Sale (EPOS) till. This means there is no need to re-key any payment information, so reducing errors and dramatically speeding up the checkout process. In addition, it is no longer necessary to match till receipts with the end-of-day

Payments technology

Facts and figures

72,000 Payments made every minute in the UK by consumers and businesses last year

79,044 What this is predicted to be by 2025

reports, as all the transaction data is in one place. Card acceptance has been historically more difficult for small and mobile businesses for a number of reasons, with cost and complexity being the most significant. However, new technologies are increasingly making card payments a viable option for even the smallest businesses, no matter how micro. The catalyst for this has been the explosion in the use of sophisticated technology that can transform any smartphone or tablet into a card payment solution. These solutions normally consist of a light, portable PIN Pad device that is flexible, reliable and affordable and is being increasingly used by mobile traders as well as hairdressers and barber shops. CUSTOMER DATA AND FEEDBACK Apart from payments, another important change is the use of technology to provide richer, faster and more honest customer feedback. For example, new customer rating technology such as the truRating system can capture and analyse customer feedback at the till. The system, as highlighted in salonfocus in March/April, works by

asking clients one question, which they rate zero to nine before they enter their PIN into a salon’s card payment machine. The questions are rotated from a fixed set of customised questions, in order to rate a client’s experience, specific service or product. The rating is anonymous and the feedback can be accessed by the store and acted on to ensure they provide the best possible service. The system currently works through Global Payments’ Ingenico terminals. To conclude, being able to accept any payment method is crucial for salons and barber shops as this can actively contribute to increased income as well as improved customer service. But salons need to recognise clients are increasingly demanding, and expecting, to be able to pay for goods and services through these new payment methods and technologies. Being able to provide quick, easy and secure payments improves customer experience, increases customer loyalty and ensures repeat business. On top of this, the inclusion of a customer rating system as part of the payments process can ensure customers’ needs are being met effectively, and has the potential to be of invaluable assistance for hair salons and barber shops of all sizes.

45.1% Percentage of payments made by cash in 2015

27% Percentage of payments forecast to be made by cash in 2025

14.5 billion Number of debit card payments predicted to be made in 2021, and set to be outstripping the forecast 13 billion cash payments for the first time

50.2% Percentage of payments forecast to be made by credit, debit and charge cards by 2025 Source: UK Payment Markets, 2016, Payments UK

July/August 2016 | salonfocus

Events

BOOKINGS Anyone interested in attending events should contact the NHF team on 01234 831965 or events@nhf. info. Bookings can be made online at nhf.info/events

ONE-DAY EVENTS HOW TO INCREASE YOUR PROFITS 11 July – Portsmouth EMERGENCY FIRST AID AT WORK 11 July – Manchester

REGIONAL EVENTS

WALES WATCHING

24 October Pride of Scotland, Glasgow 6 November Welsh Awards, Cardiff

NATIONAL COMPETITIONS 18 September Photographic Stylist of the Year (closing date) 13 November Britain’s Best

INDUSTRY EVENTS

18-19

SEPTEMBER

Salon North, Manchester There will be a number of presentations by NHF affiliate members, including: • Truth and lies about employment law, by Richard Willett, senior employment consultant at Croner • How to create a salon training and development plan, by Ryan Fox, hair and beauty salon consultant • Managing client relationships, by David Drew, Impact Business Consultancy • Which day of the week do you break even?, Richard Wallace and Chris Amos, Winning Ways • Client loss and how to deal with it, by Penny Etheridge, Radiant Consultancy

he majority of the NHF’s regional competitions and awards take place in the first half of the year, but one event definitely to watch out for this autumn is the Welsh Awards on 6 November.

The awards are notable within the NHF calendar for being the only regional event to be totally text-based and clientled, rather than a more traditional floor competition. The categories this year are still to be confirmed but are expected to include: • Hairdresser of the Year • Barber of the Year • Salon Apprentice of the Year • Salon Team of the Year • Student of the Year • Colour Artist/Technician of the Year • Receptionist of the Year • Lecturer of the Year • Training Provider or College of the Year • Nail Technician of the Year • Make-up artist of the Year • Beauty Therapist of the Year • Wholesaler of the Year There will also be a “Welsh Hall of Fame” winner, in recognition of someone who has made a life-long contribution to the industry in Wales. Last year, this went to Phillip Mungeam, of The Room in Usk (pictured above, with then national president Paul Curry and NHF Wales president and past

salonfocus | July/August 2016

national president Mark Coray). “It’s very much like the X Factor. So every person gets a unique code and then gets their clients to text it. This comes through on a computer where we can see how many unique numbers, and how many repeat numbers there are,” explains Mark. “It’s open to anyone in Wales working in hairdressing or barbering, and that’s the only specification – you have to be working in Wales. You don’t have to be Welsh, but you do have to be working in Wales,” he adds. NOMINATION PROCESS For those interested in entering, the first step is to nominate yourself (or be nominated by a colleague), so you can get your unique text code and begin to gather votes from clients. The nomination process is set to start during this month (July) and you will normally need to have put yourself forward by the middle of September at the latest, to allow time for votes to be cast. The voting process itself will then close in mid-October. “Everyone who texts gets a 'thank you' text back. So it is actually a really fun thing. I’m hoping this year’s awards are going to be even better and brighter, so watch this space,” says Mark. Full details on the awards and the entry process can be found at nhf.info, by clicking through to “Events” and then “Competitions”. Alternatively, details can also be found on the NHF Wales website, nhfwales.com

NHF

GO ONLINE AT NHF.INFO/NHF-GUIDES

GuideS

TO FIND OUT MORE.

CHECK OUT OUR RANGE OF NHF GUIDES TO RUNNING A SALON OR BARBERSHOP BUSINESS ¡¡ Chair renting ¡¡ Allergy alert testing and colour ¡¡ National Minimum Wage ¡¡ Salon software ¡¡ Becoming a training provider ¡¡ Employment law ¡¡ Pensions and auto-enrolment ¡¡ Apprenticeships ¡¡ Franchising your business

¡¡ ¡¡ ¡¡ ¡¡ ¡¡

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Q&A

Health and safety

LEGAL LIFELINE Members with a business, legal or employment question can call the Legal Lifeline on 01234 831965 or email enquiries@nhf.info. Employment-related support is available 24/7 and advice on commercial issues 9am-5pm Monday-Friday.

YOUR

QUESTIONS THE PROS AND CONS OF GENDER NEUTRAL PRICING, WHETHER TO REPORT AN INJURY AND A POTENTIAL CASE OF HARASSMENT WERE ALL WORRYING NHF MEMBERS DURING JUNE.

I own a unisex salon. What is the best way to organise pricing in order to minimise any possibility of accusations of discrimination?

The best way to organise pricing in this context is simply to have a single price list for services and to charge on the basis of the amount of time taken rather than to have a men’s and woman’s pricing system. This allows the salon to account for a woman’s quick cut as well as a man’s more complex cut. Since the price would be calculated irrespective of gender there would be no reasonable basis for a consumer to argue they had been treated less favourably on the ground of gender for the purposes of either direct or indirect discrimination.

But can a unisex salon still have two different price lists, one for men and one for women?

As it stands this is a difficult question to answer because, as yet, neither the UK courts nor the European Court of Justice has dealt directly with this as an issue. As such, while there is no case law that states you cannot have two different price lists in this way, there is some risk in terms of the law to doing so. The Equality Act 2010 applies to

salons just as much as it does to any other business that provides services to the public. As such, salons must avoid doing things that, directly or indirectly, could be seen as discriminating against people on the basis of what is known as a “protected characteristic”, one of which is gender. Historically, the services provided to men and women by barbers and salons could be considered to be different. However, in more recent times there has been a blurring of this distinction, given that some men are now opting for more technical cuts and some women, conversely, opting for more basic cuts. Therefore, as outlined above, allowing a consumer to pick from which list they would like the service, and ensuring the prices for identical services are the same on either list, minimises the risk of anyone alleging discrimination.

One of my stylists slipped over on the floor in the salon and has been off work now for nearly two weeks with a bad back. Do I need to report this injury to anyone?

If an employee has an injury caused by a work-related accident and is unable to do his/ her normal work for more than seven days, then you must

send a report to the enforcing authority as soon as possible and within 15 days on the accident. Seven days includes any days that would not have been working days but does not include the day of the accident. You should fill out the online form on the Health and Safety Executive’s website. Also be aware you must keep a record of any accident that results in one of your employees being incapacitated for more than three days. You must also report an injury if it is: • One included in the Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 2013 (also known as “RIDDOR”). • If the person injured is not at work (in other words probably is a client) and/ or it results in them being taken to hospital or results “from a dangerous occurrence” (and the definition of this is again outlined in RIDDOR). In these scenarios, you must, as the employer, report the injury to the enforcing authority as soon as possible after the event, and not more than ten days after the incident.

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