Holidays and Holiday Pay: Beauty Industry Employees

Holidays and Holiday Pay: Beauty Industry Employees

This information comes from Alberta’s Employment Standards Code. Whether you are FT, PT, or on Commission, the code applies to all employees who are NOT self-employed or contracted.

Now let’s begin…

Throughout the year, the following holidays are recognized by the code:
  • January 1, New Year’s Day
  • 3rd Monday in February, Family Day
  • Friday before Easter (varies in March/April), Good Friday
  • Monday after May 25, Victoria Day
  • July 1, Canada Day
  • 1st Monday in September, Labour Day
  • 2nd Monday in October, Thanksgiving Day
  • November 11, Remembrance Day
  • December 25, Christmas Day

Did you know?
  • When July 1 falls on a Monday-Saturday, it is celebrated that day, however, when it falls on a Sunday, its celebrated the next day on Monday
  • Employers can choose to designate Boxing Day, Easter Monday, or Heritage Day (1st Monday in August) as a holiday, however, it is NOT mandatory

But not everyone is eligible for holiday pay, to be eligible:
  • You have to have worked at least 30 days before the holiday in question
  • You can ‘t have missed work the day before or the day after the holiday in question
  • You have to have actually worked on the holiday in question (not refuse)

If you are eligible, and it is your REGULAR day of work, your employer either
  • Pays your daily wage + 1.5X your wage for all hours worked; or
  • Pays your daily wage + provides a day off with pay of average daily wage (If you accept this option, you must take your day off no later than your next vacation and on a day that would normally be a work day for you)

If you are eligible, and it is NOT your REGULAR day of work, your employer
  • Pays you 1.5X your wage for your hours worked

Did you know?
  • If you are on vacation when a general holiday occurs and it would be your regular day to work, you are still entitled to holiday pay
  • Employees paid by commission are entitled to their daily wage + 1.5x their wage when they work on a holiday Ask Executive Spa Group how to calculate the hourly wage if you are paid by commission or visit the Alberta’s Employment Standard Code Fact Sheet

In the beauty industry, a lot of employees work irregular schedules where employees only work when there is work available, or work in predetermined, repetitive patterns that differ from your average M-F/9-5. Contact Executive Spa Group for questions regarding your eligibility for holiday pay based on your particular schedule.

Continue Reading No Comments

alberta,alberta employment standards code,beauty industry,contractors,employees,employment,job vacancies,staff

Beauty Industry Staff: Employee vs. Contractor

ESG Beauty Industry Career and Employment

Employee vs Contractor in Alberta’s Beauty Industry: What’s the difference?

Beauty Industry Staff: Employee vs. Contractor

The beauty industry offers all types of work arrangements. This article is meant to help both employers and service providers understand what their roles and responsibilities are in their particular work arrangements.

Let’s start by defining the difference between an employee and a contractor:
  • An employee works under an employee/employer relationship
  • A contractor carries out her/his work under an independent business/contractor relationship. In our industry, contractors are commonly known as “freelancers”, “chair renters”, “room renters”…
Remember that employees and contractors are governed by different employment laws and regulations, so it’s important to know which you (or your staff) fall under! Contracts are highly recommended as they allow for written clarification of any agreements made in the employer-worker relationship.

To help you understand the difference, we have come up with 4 different categories where we will highlight the differences between an employee and contractor:
  • Working Conditions
  • Tools and Equipment
  • Canada Revenue Agency
  • Employment Standards

Working Conditions

Employees in the beauty industry are regularly paid either a wage, salary, commission, or a combination of wage + commission. Contractors on the other hand submit invoices and may receive payment at intervals agreed upon by them and the employer. In the beauty industry however, chair/room renters pay an agreed amount to the employer and do not disclose to the employer their earnings or expenses.

Employees’ additional training is paid for or reimbursed by the employer, as where contractors pay for their own training costs and must have the required training before providing services.

Employees’ hours of work are determined by the employer, as where contractors choose their own time of work. In the beauty industry however, chair/room renters may work during their hours of choosing, as long as it in accordance with the employer’s hours of operation.

Tools and Equipment

Employees in the beauty industry are provided all the tools and equipment necessary to perform services. These tools and equipment are maintained by the employer, however, a good service provider will extend the life of any tool or equipment by using it properly and sanitizing it after every client. Employees can choose to provide their own tools.
Contractors provide and maintain their own tools and equipment. Ultimately, the employer and worker agree on the terms and conditions of their arrangement, but generally, chair/room renters are provided with a space within a salon/spa to provide services. Often a chair is provided by the employer to chair renters.

Canada Revenue Agency

Employees are deducted personal federal and provincial income tax, Employment Insurance (EI) premiums, Canada Pension Plan (CPP) from their employment earnings by the employer who in turn submits the deducted tax to Canada Revenue Agency (CRA).

Contractors submit their own federal and provincial tax deductions to the CRA. Sole Proprietors declare their earnings as personal income and therefore do not pay federal or provincial corporate taxes. Incorporated contractors submit a federal corporate income tax return along with their annual return. In terms of EI premiums, it is always the employer’s responsibility to pay the employer and employee portions of the EI premium. This includes EI premiums of chair/room renters. Contact ESG to learn more on how to deduct EI premiums from chair/room renters. In regards to CPP, the contractor is responsible to contribute to CPP.

Employees do not collect GST from their clients; Contractors including chair/room renters, (Sole Proprietors or Incorporated) must register to collect, charge, and remit GST once their gross annual revenues reach over $30K.

Employment Standards

Employees are covered by Alberta’s Employment Standard Code which entitles employees to general holiday pay/overtime pay/minimum wage/termination pay/vacation pay and time off. Contractors are NOT entitled to many of the perks enjoyed by employees. As a contractor in the beauty industry, it is important to cover all these details in a written contract prior to commencing employment.

Contact us to learn more

Executive Spa Group (ESG)
(780) 604 2772
executivespagroup.com

Continue Reading

Beauty Industry Employment Statistics by Province

Employment Statistics in Canada’s Beauty Industry

NAICS vs. NOC?

The National Occupation Classification (NOC) is a numeric system used to classify occupations in Canada. It is a nationally accepted reference on occupations in Canada.

The North American Industry Classification System (NAICS) on the other hand, is used by businesses and the governments of the United States, Mexico, and Canada to classify business establishments according their type of economic activity.

The Beauty Industry falls under:

NOC:
  • 6271 for Hairstylists
  • 6482 for Estheticians and Nail Technicians
  • 5226 for Makeup Artists
  • 3235 for Massage Therapists

NAICS
  • 8121- Personal Care Services

Personal Care Services

This industry group comprises businesses primarily engaged in providing personal care services, such as hair care and esthetic services, hair replacement and scalp treatment services, massage services, diet counseling services and ear piercing services.

The North American Industry Classification System further classifies these establishments into more specific services. Contact ESG to learn more.

An establishment is placed into a NAICS category according to its primary business activity (the product or service whose revenues are the highest in terms of dollar value in that particular business).

If an establishment provides more than one product or service and these activities cross over NAICS boundaries any given year then an establishment could move from one NAICS code to another. For example, a spa that offers esthetics and massage therapy could cross over NAICS codes depending on which service sold more that year- facials or massages for example.


The above information was collected via
Alberta Learning Information Service (ALIS)
Industry Canada
Statistics Canada

Continue Reading No Comments