No answers on self-employment in the hair and beauty sector, says the NHBF

The government's long-awaited response to the Taylor Review of Modern Working Practices was published today.  The Taylor review had made far-reaching recommendations, including defining who is an employee, a worker or genuinely self-employed, their rights and how taxes should be applied.

Rights for the self-employed within the hair and beauty industry 

The hair and beauty industry was looking for clarity on the status of chair renters and beauty room renters working in salons and what additional rights, if any, they would be entitled to. There is also the long-standing issue of the imbalance on National Insurance Contributions which are paid by employers for employees working in their salons, but not for self-employed workers, and the lower rate of NICs paid by those who are self-employed.  The government has ruled out any changes on NICs and says it has no plans to change the current system.

However, the government has announced that there will be a consultation on employment status and one on the enforcement of employment rights.

The government's response to self-employed workers 

In the response published today, the government has focussed on giving greater rights to workers on zero hours contracts, agency workers and flexible workers who find jobs online or through an app.  They also announced plans to crack down on employers who fail to pay fines imposed by Employment Tribunals, including 'naming and shaming' and much larger fines.

Hilary Hall, chief executive of the NHBF said: 

"Although it’s great news for people who are self-employed, we are obviously disappointed that changes to NICs have been ruled out. But the burning questions on employment status have not yet been answered, yet there could be far-reaching consequences for the hairdressing, barbering and beauty industries. We will be building on the campaigning work we have already done and actively participating in the consultations."