DRAFTING COMPLIANT EMPLOYMENT CONTRACTS

Written by Hulisani Ravhudzulo

The hairdressing and beauty industry in South Africa is both vibrant and highly regulated. Salons, spas, and aesthetic clinics operate in an environment that demands flexibility, extended trading hours, and close interaction with clients. Employees may include hairstylists, beauty and nail technicians, massage therapists, assistants, receptionists, and commission-based earners, all of whom contribute directly to the success and reputation of the business.

Despite the informal and creative nature of the industry, employment relationships are governed by strict labour legislation. Many salon owners underestimate the importance of a properly drafted employment contract, often relying on verbal agreements or outdated templates. This exposes businesses to unnecessary risk, including CCMA disputes, labour inspections, back-pay orders, fines, and reputational damage.

A compliant employment contract is not designed to burden employers but to create clarity, fairness, and certainty for both parties. This article explains, in plain language, the essential legal requirements when drafting employment contracts in the hairdressing and beauty industry, with specific reference to the Basic Conditions of Employment Act (BCEA), Labour Relations Act (LRA), and applicable industry agreements.

1. Understanding the Employment Relationship

Before drafting any contract, it is critical to correctly identify the nature of the working relationship. Many disputes arise not because employers intend to act unlawfully, but because the relationship has been incorrectly classified from the start.

Employee vs Independent Contractor

A common practice in the industry is to label workers as “freelancers”, “chair renters,” or “independent contractors” to avoid statutory obligations such as leave, overtime, and minimum wages. In South African labour law, however, the reality of the relationship takes precedence over the label used in the contract.

An individual is likely to be regarded as an employee if:

• The salon/spa owner controls working hours, pricing, services, and conduct

• The individual works under supervision or instruction

• The individual is economically dependent on the salon

• Tools, equipment, stock, or products are supplied by the salon

• The individual forms part of the salon’s daily operations

Where these elements are present, the BCEA and LRA apply automatically, regardless of how the contract is worded. Misclassification remains one of the most common compliance failures in the hairdressing and beauty sector.

2. Mandatory Contractual Inclusions (BCEA Essentials)

The BCEA requires that every employee receive a written contract of employment. This document must set out the basic terms and conditions of employment clearly and accurately.

At a minimum, the contract must include:

• Full employer and employee details

• Job title and a clear description of duties

• Place or places of work

• Ordinary working hours and working days

• Remuneration structure (hourly, weekly, commission, or hybrid)

• Pay intervals and method of payment

• Overtime arrangements

• Leave entitlements

• Notice periods

• Lawful deductions (only if agreed in writing)

• Registration with the National Bargaining Council for Hairdressing, Cosmetology, Beauty, and Skincare Industry (HCBSC) and all relevant contributions and associated deductions

The contract must be accessible and explained to the employee, particularly where English is not the employee’s first language. A signed and understood contract reduces misunderstandings and protects both employer and employee.

3. Industry-Specific Considerations (Hairdressing & Beauty Industry)

a) Working Hours & Overtime

Salons/spas often operate extended hours, weekends, and public holidays. Employment contracts must:

• Define ordinary working hours in line with the sectoral determination, which is normally 45 hours per week, up to 195 hours per month

• Confirm that overtime is voluntary and agreed upon

• Specify overtime rates (minimum 1.5 times the normal wage)

• Regulate Sunday and public holiday work (payment at 1.5 or double the hourly rate)

Failure to correctly regulate and pay overtime is one of the most common reasons for CCMA disputes in the industry.

b) Commission-Based Earnings

Commission-based remuneration is common and lawful, but only if structured correctly. Contracts must:

• Clearly explain how the commission is calculated

• Confirm whether commission is in addition to or inclusive of basic pay

• Ensure that the employee earns at least the applicable minimum wage

Commission cannot be used to bypass minimum wage obligations. Where commission earnings fall below the minimum, the employer must top up the employee’s pay.

c) Leave Provisions

Contracts must reflect statutory leave entitlements, including:

• Annual leave: 21 consecutive days per leave cycle

• Industry-specific sick leave: 66 days, divided as follows:

o 33 days from day 1 to day 6

o 33 days from day 7 onwards, as per Sick Pay Fund rules

• Family responsibility & Compassionate leave

• Maternity/Parental Leave

• Public holidays

Clauses that attempt to forfeit leave, substitute unpaid leave, or enforce “use it or lose it” arrangements are unlawful.

d) Uniforms, Tools & Deductions

Where uniforms, tools, or products are required:

• The contract must clearly state who bears the cost

• Any deductions must be lawful, reasonable, and agreed in writing

• Employers may not deduct for breakages, losses, or shortages without a fair and lawful process

Unlawful deductions frequently result in successful claims against employers.

4. Probation, Performance & Discipline (LRA Compliance)

Probation Clauses

Probation is permitted but must be fair and reasonable:

• Typically three months, extendable by a further three months if justified

• Clear performance standards must be communicated

• Training, guidance, and support must be provided

• Performance must be assessed before termination

Automatic dismissal at the end of probation is unlawful.

Discipline & Dismissal

Employment contracts should align with:

• Schedule 8 of the LRA (Code of Good Practice: Dismissal)

• Fair disciplinary procedures

• Progressive discipline, where appropriate

• A clear code of conduct aligned with industry standards

Dismissals without procedural or substantive fairness expose employers to reinstatement or compensation awards.

5. Confidentiality, Conduct & Client Relationships

Due to the client-facing nature of the industry, contracts should include:

• Confidentiality clauses covering client information and pricing

• Reasonable restraint of trade clauses

• Standards of hygiene, professionalism, and conduct

• Social media and brand representation guidelines

These clauses must be reasonable and enforceable, not punitive.

6. Occupational Health & Safety Obligations

Employment contracts should reference:

• Compliance with the Occupational Health & Safety Act

• Safe handling of chemicals, equipment, and tools

• Reporting of injuries, hazards, and incidents

• Employer-provided training and personal protective equipment

Failure to address health and safety places both employees and the business at risk.

7. Common Compliance Risks in the Industry

Salon/spa owners should be cautious of:

• Verbal agreements only

• Generic or outdated contracts

• Misclassification of employees

• Unlawful deductions

• Ignoring sectoral minimum wages

• Inconsistent treatment of staff

These risks frequently result in CCMA referrals, inspections, and penalties.

A compliant employment contract is far more than a formality. It is a legal safeguard that protects both employer and employee, promotes fairness, and supports sustainable business practices. In the hairdressing and beauty industry, where flexibility and creativity are essential, contracts must be carefully drafted, industry-specific,c and legally compliant.

Salon/spa owners are encouraged to regularly review employment contracts against current labour legislation and sectoral determinations and to seek professional labour advice where uncertainty exists. Employers are further encouraged to engage with their EOHCB representatives in their respective areas to ensure contracts are correctly aligned, compliant, and fair, thereby avoiding unfair labour practices and promoting healthy employment relationships.