Rent-A-Chairs Beware (Part 2)
Stephen Delport, CEO of the Bargaining Council, has put together a series of educational videos explaining the risks to salons who operate as rent-a-chairs rather than employing their staff.
This series is to help salon owners understand the difference between employees and rent-a-chairs according to the South African Labour Relations Act. There is an important difference between the two and this has implications for the stylist and the salon owner.
A person is presumed to be an employee if:
a. The manner in which they work is subject to the control or direction of another person.
b. Their working hours are subject to the control or direction of another person.
c. In the case of a person who works for an organisation, that person forms part of the organisation.
d. They have worked for the other person for at least 40 hours per month over the last three months.
e. They are economically dependent on the person for whom they work or render services.
f. They are provided with tools of the trade or work equipment by the other person.
g. They only work for, or render services to, one person.
Why do salons choose to have people renting a chair instead of being employed?
a. They think they will be exempt from paying contributions to statutory bodies.
b. However, this places the most vulnerable employees at risk.
c. If the situation goes bad and the rent-a-chair leaves, they will often claim benefits such as leave pay, and will then state that they were an employee according to the list of requirements above.
d. The growth in the trend of Rent-a-chairs is not good for the industry.
If you would like to address the situation within your salon, or would like to make sure you are operating within the law, contact the HCSBC on 0861 427 227 or email@example.com or go to www.hcsbc.co.za, and we will do our best to help you!
To watch the first part of this video, click here