WHAT CONSTITUTES AN EMPLOYMENT RELATIONSHIP UNDER SOUTH AFRICAN LAW

Written by Nkosana Mazibuko

The Employment Relationship & Contractual Compliance

In the hairdressing, cosmetology, and beauty industry, contracts are often treated as the final word. But South African labour law tells a different story. The Constitutional Court in Kylie v CCMA (2010) made it clear: when deciding whether someone is an employee, substance prevails over form. In other words, it doesn’t matter what the contract says if the reality of the working relationship points to employment. For salon owners and beauty business employers, this principle is critical because misclassifying staff can expose you to serious legal and financial risks.

The Golden Rule: Reality Over Paperwork

Cases such as Kylie v CCMA, Discovery Health v CCMA, and State Information Technology Agency v CCMA show that contracts cannot disguise the true nature of a working relationship. If your stylists, therapists, or assistants are under your control, using your tools, and integrated into your brand, they are employees regardless of what their contract says.

The Tests You Must Know

When the CCMA or courts assess employment status, they look at:

• Control: Do you decide when your staff start, finish, and how they perform treatments?

• Tools and Equipment: Do you provide the salon chairs, products, uniforms, or booking system?

• Integration: Do clients see them as part of your salon? Do they attend meetings or follow your policies?

• Substitution: Can they send someone else in their place? If not, they’re likely employees.

Section 200A of the Basic Conditions of Employment Act (1997) even presumes employment if certain conditions are met, shifting the burden onto you, the employer, to prove otherwise.

Different Employment Arrangements in the Beauty Industry:

• Permanent Employment: Stylists or therapists employed full-time with full benefits and protections.

• Fixed-Term Contracts: Valid for specific projects or absences (e.g., maternity cover). Repeated renewals may convert them into permanent employment.

• Part-Time Employment: Same protections as full-time, with benefits calculated proportionally.

• Labour Brokers: If you use agency staff, after three months they must be treated the same as permanent employees if they earn below a threshold (per the 2014 Labour Relations Amendment Act).

• Internships and Learnerships: Must provide genuine training. Using “interns” as unpaid workers without training is exploitation and may trigger employee rights.

Compliance Essentials for Salon Owners

• Don’t Mislabel Contracts: Writing “independent contractor” won’t protect you if the relationship reflects employment.

• Keep Proper Records: Hours worked, wages paid, and leave taken must be documented. Without records, the CCMA will likely accept the worker’s version.

• Use Fixed-Term Contracts Correctly: Only for genuine temporary needs, not indefinite renewals.

• Understand Labour Broker Obligations: Both you and the broker share responsibility.

• True Contractors Must Be Independent: They should run their own business, supply their own tools, work for multiple clients, and invoice you properly.

Conclusion

For employers in the hairdressing, cosmetology, and beauty industry, the message is clear: classify your staff correctly from day one. Misclassification is not a clever shortcut; it’s a costly mistake.

• If you employ stylists, therapists, or assistants under your control, using your equipment, and integrated into your brand, they are employees.

• If you genuinely engage contractors, ensure the relationship reflects independence in practice, not just on paper.

South African labour law is designed to protect fairness in the workplace. The tests are established, the statutes are clear, and the consequences of getting it wrong are serious. Treating your team fairly and lawfully is not only a legal requirement, but it’s also the foundation of a sustainable, reputable business in the beauty industry.