The salon owners' guide to business red tape

Ask any salon owner what they find hardest about their job and the answer is invariably ‘red tape’, or legislation. No respectable businessperson wants to disrespect the law, but with new legislation relating to employment, taxation and the environment continually entering the equation, keeping up can be a headache. Here’s an update on some of this year’s legislative changes.

National Minimum Wage

The national minimum wage rates from 1 October are:

• £5.52 per hour for workers 22 years and older
• A development rate of £4.60 per hour for workers aged 18-21
• £3.40 per hour for all workers under the age of 18 who are no longer of compulsory school age.

Smoking

You’d need to have been living on Mars for the past year not to be aware of the new smoking legislation in England. However, some salon owners are still confused about exactly what they need to do to comply. The rules came into effect on 1 July and are enforceable with fines of up to £2,500. Under the new rules:

• No-smoking signs must be displayed in all smoke-free premises
• Staff smoking rooms are no longer allowed
• Managers of smoke-free premises have a legal responsibility to prevent people from smoking
• Failure to display a no-smoking sign carries a fixed penalty of £200, reduced to £150 if paid within 15 days
• Failure to prevent smoking on the premises carries a maximum fine of £2,500

Non-Hazardous Waste

As of 30 October any non-hazardous waste destined for a landfill site must be treated in-house – liquid waste is now banned from landfill.

• If free-draining liquid exceeds 10% of the load volume you will need to divert it for liquid waste disposal by discharging it into a sewer or applying a biological or thermal treatment to it
• Small amounts of liquid will be allowed if they are in a carton, for example
• The rules apply to non-hazardous solid waste, including household and builders’ skip waste, soil and rubble. It is the salon owner or manager’s responsibility to ensure volume of solid waste is reduced by recycling where applicable. A factsheet on how to treat non-hazardous waste can be downloaded from the Environment Agency website.

  Adminstration For Pension Schemes

  As of 16 October, pension scheme administrators within a company now have to submit information regarding pension schemes to HM Revenue & Customs (HMRC) electronically. The administrator should have registered with HMRC for the online pensions service and apply for a scheme administrator ID. An administrator can appoint a pension practitioner to report to and communicate with HMRC on their behalf. Find out more.

  Holiday Entitlement

  The statutory minimum annual holiday entitlement has risen from four weeks (20 days for those working a five-day week) to 4.8 weeks (24 days). From 1 April 2009, all workers, including those working part-time, will be entitled to 5.6 times their usual working week – up to a maximum of 28 days.

  Discrimination On The Basis Of Religious Beliefs Or Sexual Orientation

  April saw the introduction of new legislation under the Equality Act 2006 making it unlawful for businesses supplying goods or services to discriminate against a person because of their religion or belief – or lack of religion or belief. Under the same Act, legislation was also introduced to make it illegal to discriminate against a person because of their sexual orientation.