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The Law On Employee Tips Is Changing: Here’s What You Need To Know

The Law On Employee Tips Is Changing: Here’s What You Need To Know

The Law On Employee Tips Is Changing: Here’s What You Need To Know

This autumn sees new rules for managing staff tips – which means the way you currently handle tips in your business could become unlawful.

by ATHERINE | THE COST OF DOING BUSINESS

As revealed at this year’s Salon Smart, the government is about to introduce new legislation around UK tipping laws that will have implications for some hairdressing employers. The Employment (Allocation of Tips) Act 2023, expected to come into effect on 1 October this year, will make it unlawful for employers to withhold tips from workers. The new law will introduce changes to tipping practices in the UK and, if not adhered to, could have substantial financial consequences for employers, with awards of up to £5,000 per employee to reflect losses suffered.

The new legislation will protect tips paid by cash and card, ensuring that tips are passed on to employees without any deductions from their employer. The tips should be allocated fairly (a draft statutory Code of Practice (available here) has been provided by government), and all workers are protected by the new law, including those on zero-hour contracts.

If tips have not been paid on time, an employee can claim up to £5,000 in compensation.

The obligations under the new act include the total amount of the customer’s bill, which will include any deductions such as bank and admin charges. This means that employers will no longer be able to apply a portion of a gratuity or tip to meet those additional charges and will need to find an alternative way to pass on those charges to clients.

If, in your business, tips are regularly paid to your employees, you should implement a written policy that explains the allocation of qualifying tips, and how they will be distributed in a fair and consistent manner. Having a written policy which is clear and accessible to all staff will ensure adherence with the new laws and will help to avoid any potential employee complaints and claims.

You must also keep a record of how tips are being allocated and distributed among your employees. Under the new law, employees will have a right to request information about an employer’s tipping record once every three months. If an employee does request a copy of your tipping records, you must comply with this request within four weeks from the date it was requested. If there are inconsistencies in your records, or if the records show that the tips have not been distributed fairly, this can be used as evidence by an employee to bring a tribunal claim.

You should ensure that tips are paid to employees no later than the end of the month following the month in which the customer paid the tips. If tips have not been paid on time, an employee can claim up to £5,000 in compensation.

Finally, it is important to note that there will be no transition period. This means that, in order to avoid the consequences of non-compliance, you will need to make any required changes to your business operations before the new legislation comes into effect.

Hands Up If You Want To Be Heard

Hands Up If You Want To Be Heard

Hand Up If You Want To Be Heard

How do you feel about working in hair? Creative HEAD invites YOU to share your thoughts for the next On The Floor report.

by AMANDA | THE COST OF DOING BUSINESS

Creative HEAD is on the hunt for salon employers, employees and freelancers to take part in the 2024 On The Floor report, our regular deep dive into the landscape of modern hairdressing and barbering. We want to know what’s happening now and what’s coming next for UK hairdressing’s employers, employees and self-employed.

Launched in 2021, Creative HEAD’s major industry survey, On The Floor, discovered salon employers frustrated by increasing numbers of rent-a-chair competitors; employees feeling disenfranchised by the glamorisation of freelancing and the prioritising of social following over talent and skill; and growing numbers of self-employed stylists building their own brands and independence, with all that entails.

Follow-up reports have investigated recruitment challenges and the headaches trying to find and keep hairdressing and barbering apprentices. And now we want to do it again, to keep the conversation going and to better understand how to tackle the challenges and make progress…

In July we will be conducting focus sessions with our three key groups – salon employers, salon employees and self-employed stylists. And we want to hear what YOU have to say! These sessions will be conducted on Zoom and will allow all participants to have a voice and share their thoughts and experiences.

Re-Live Salon Smart 2024

Re-Live Salon Smart 2024

RE-LIVE SALON SMART 2024

Watch the highlights from Creative HEAD’s annual business networking event.

Salon Smart returned to The Chain and Buoy Store in London on 18 March 2024, delivering a jam-packed day of insight and inspiration for salon and barber shop owners and managers. Sit back, relax and enjoy snippets from the sell-out event.

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TEST: DOMESTIC ABUSE: THE WARNING SIGNS AT WORK YOU NEED TO KNOW

TEST: DOMESTIC ABUSE: THE WARNING SIGNS AT WORK YOU NEED TO KNOW

You suspect your client is suffering domestic abuse. So, what do you do next? Celebrity hairstylist Sam Kerswell has first-hand experience

Concerned for the welfare of your colleague or client? Celebrity hairstylist Sam Kerswell shares his first-hand experience, so you know how best to help.

You suspect your client is suffering domestic abuse. So, what do you do next? Celebrity hairstylist Sam Kerswell has first-hand experience

Concerned for the welfare of your colleague or client? Celebrity hairstylist Sam Kerswell shares his first-hand experience, so you know how best to help.

Sam Kerswell

Sam Kerswell, photographed by Lynett Genockey of Harplette Photography with make-up by Tracy Graham

It’s no secret that the hair salon is seen as a safe space by clients – it’s a chance for them to vent, divulge details from their personal lives and chat to hairdressers like old friends. Often, hairdresse rs consider themselves to be agony aunts, but what happens when it goes beyond discussing a new relationship or family drama?

A hair salon can be a lifeline for someone experiencing abuse and may provide a safe place to seek help, be it as a client or as an employee at the space. For hairdresser Sam Kerswell, a survivor of domestic abuse, his clients knew something was up because of him repeatedly cancelling or rescheduling appointments. When they eventually got to see Sam in person, they noticed how his physical appearance had changed because of the abuse he was suffering at home.

Like so many victims of domestic abuse, Sam was afraid to speak out against his abuser, with those in his life none the wiser as to what was causing the bruises, weight loss, and much more besides. Fast forward a year, and he’s now sharing his story to raise awareness and help anyone else who is suffering in silence.

If you’re concerned about a colleague or client, here Sam shares the signs you should be looking out for, and what to do if you’re wanting to offer support but unsure how to help. 

“If you’re concerned about a colleague or client, here Sam shares the signs you should be looking out for, and what to do if you’re wanting to offer support but unsure how to help.”

10 things to look out for

1. Physical injuries: Notice unexplained bruises, cuts, or marks, especially if they occur frequently or seem to be escalating in severity.
2. Changes in behaviour: Look for sudden changes in mood, anxiety, or withdrawal from social interactions.
3. Isolation: If a co-worker or client becomes increasingly isolated, avoids social gatherings, or makes excuses to not participate in group activities, it could be a sign of controlling behaviour from an abusive partner.
4. Excessive absences or tardiness: Consistent tardiness or unexplained absences could indicate the need to hide injuries or emotional distress caused by domestic abuse.
5. Unusual financial strain: Notice if a co-worker or client suddenly experiences financial difficulties, such as requesting pay advances, selling personal items, or borrowing money frequently. This could be a result of financial control or manipulation by an abuser.
6. Fearfulness or nervousness: Pay attention to signs of fearfulness, nervousness, or being easily startled, especially if they seem to be in the presence of their partner.
7. Overly controlling partner: If a co-worker or client’s partner exhibits overly controlling behaviour, such as constantly calling or texting, monitoring their whereabouts, or restricting their communication with others, it could be a red flag.
8. Unexplained excuses or cover-ups: Be wary of inconsistent or implausible explanations for injuries, missed work, or changes in behaviour. Unexplained weight loss and excuses as to why is also an indicator as some abusers limit food intake.
9. Uncharacteristic clothing choices: Notice if a co-worker or client wears clothing that seems inappropriate for the weather or situation, which could be an attempt to hide physical injuries.
10. Expressions of fear or concern: If they confide in you about feeling afraid or concerned about their safety at home, take their words seriously and offer support and resources for help.

“If you’re concerned about a colleague or client, here Sam shares the signs you should be looking out for, and what to do if you’re wanting to offer support but unsure how to help.”

Sam Kerswell with friend Annie Franklin
Sam with friend Annie Franklin
Sam Kerswell behind the scenes
Sam behind the scenes of a photo shoot

How to help

1. Choose a private and safe space: Initiate the conversation in a private setting where the individual feels comfortable and safe. This could be a quiet office or a secluded area away from others.
2. Express concern and support: Begin the conversation by expressing genuine concern for their well-being. Let them know that you’ve noticed certain signs or behaviours that have raised concerns and that you are there to support them.
3. Listen actively: Allow the individual to share their thoughts, feelings, and experiences without interruption. Practice active listening by maintaining eye contact, nodding, and providing affirmations to show that you are engaged and empathetic.
4. Avoid judgment and blame: Refrain from making assumptions or placing blame on the individual for their situation. Instead, focus on validating their experiences and feelings while offering reassurance that they are not alone, and that help is available.
5. Offer resources and assistance: Provide information about available resources, such as domestic violence hotlines, counselling services, legal assistance, and support groups. Offer to assist them in accessing these resources if needed, while respecting their autonomy to make their own decisions.
6. Respect confidentiality: Assure the individual that any information they share with you will be kept confidential to the extent possible, while also explaining any legal or professional obligations you may have to report certain disclosures of abuse.
7. Create a safety plan: Work together to develop a safety plan tailored to their specific situation, which may include steps to ensure their immediate safety, such as identifying safe places to go or establishing a code word to signal for help.
8. Follow up and check in: Continue to offer support and check in with the individual regularly to see how they are doing. Let them know that you are there for them whenever they need someone to talk to or if they need assistance in any way.

By approaching these conversations with empathy, understanding, and a commitment to supporting the individual’s autonomy and well-being, you can help clients and colleagues feel empowered to seek help and make positive changes in their lives.

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MILES TWIST – THE ONES TO WATCH

MILES TWIST – THE ONES TO WATCH

MILES TWIST - THE ONES TO WATCH

Not just creative director at Architect Hair, Leeds, but also a session stylist working in London and overseas, Miles’ regular assisting credits include Adam Garland, Syd Hayes, and Cyndia Harvey. He’s worked on shows including Dior, Gucci and Valentino.

“This year has been tremendous fun – I’ve had some amazing opportunities.”

Follow @milestwisthair

A tip from Miles for entering the It List

How did you get into hair?

I used to work with a photographer who used to be a hairdresser. It was interesting to see a new form of creativity. I turned to hairdressing originally just to fund the photography, but as I continued in the industry it has become a real passion.

What do you love about your job?

The duality of creativity and energy through my fashion work; the wholesome and poignant side of working with people in the salon and transforming their confidence through hair. I love the transformation it can make on a person or a model and how you can change the atmosphere and perception of a person completely with a different style.

Any gripes?

The majority of jobs and agencies pay after 90 days. Invoices often lapse into six months-plus (I currently have three which are over a year). It’s unacceptable and creates issues of only the rich and privileged being able to work in our industry. We must start pushing for it to be the norm to be paid within 60 days of invoicing.

What have you been up to this year so far?

I’ve been first assisting Adam Garland’s shows in London, the highlight being Erdem A/W24 – beautiful hair in the British Museum. I joined Gary Gill’s team for the first time this season, which has been a great experience, and I’ve also been assisting the amazing Syd Hayes – we recently had a shoot with Kate Moss, which was definitely a bucket list moment.

Who in your generation do you look up to, and why?

The Hair Bros for their blending of business and creativity – their style is unique and they have a great way of presenting how they do hair. Lucy Muyanga (@thehair.co) is a peer, amazing hairstylist and friend. She’s killing it and I’m really excited to see where she goes. Finally, Emma Sommers in my salon, who balances three kids with a busy column and does it all off her own back and graft.

What makes you proud about your generation of hairdressers?

Curls and coils are becoming much more accepted, educated on and celebrated. We’re going away from the need for a “specialist” for Type 3 and 4 hair and we’re educating ourselves to deal with all types of hair. Progress in the right direction!

How does it feel to be part of the cohort that’s rewriting the rules of hairdressing now?

The rules of hairdressing don’t need to be rewritten. I feel it’s important to respect the history of hair and the key people who’ve developed our craft. It’s important to evolve the industry from the foundations that we have, to keep pushing boundaries and focusing more on the equality of hair and hairstylists.

Any advice for someone just starting out in hair?

Throw yourself into as many experiences as you can, make sure you have your fundamental foundations of hairdressing locked in and learnt, don’t forget manners and kindness go a long way with hairdressers and clients alike!

What made you enter the It List?

My boss, Louise Howard-Long, insisted I should go for it. I normally shy away from awards but with the age limit coming up and 2023 having been a great year for my career, I felt it was important to go for it!

Any advice for the 2024 entrants?

Choose imagery carefully, write with eloquence and make it more than just hairdressing. Add more to your application and career and look at the bigger picture!

Do you have what it takes to be The One to Watch 2024?

If you’re aged 30 or under, check out this year’s It List competition and submit your entry no later than Monday 20 May.

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