alberta,canada,chair rentals,chair renter,ei,employment insurance

EMPLOYMENT INSURANCE AND CHAIR RENTERS

paying employment insurance fees for chair renters

DO I HAVE TO PAY EI FOR CHAIR RENTERS?

Did you think Employment Insurance and Chair Renters would never come up in the same sentence?

CTV NEWS Saskatoon did a report on how salon owners that rent our chairs are impacted by Employment Insurance fees imposed by the Canada Revenue Agency (CRA).

The report focuses on Stacey Zielinski , owner of The Beach Beauty Bar in Martensville, Saskatchewan. Like many others, Stacey was under the impression that chair renters are independent contractors and therefore are not governed under employment laws and regulations.

Luckily for Zielinski, her tab was not too high, as only 1/5 hairstylists was a chair renter. This got us thinking though, how does this impact the industry?

What does this mean for salon owners who only rent out chairs?

Renting out chairs to hairstylists has always been an attractive option for salon owners. Renting out chairs produces consistent income, removes employee-related issues, and was formerly believed to eliminate the cost of wages and MERCS.  

It is widely believed that the salon owner does not pay money to the renter; but they do however collect money from the renter. Typically, the hairstylist pays a monthly fee to offer services to their growing clientele from an already established salon.  In exchange for this fee, the salon owner allows use of the chair and fixtures during operating hours.

Contrary to popular belief, salon owners are liable to pay Employment Insurance fees to the CRA for chair renters. Normally, independent contractors from other industries are not eligible for EI, however, there is an exception for barbers and hairstylists.

Normally, EI is paid to employees based on the hours worked per pay period. Because chair renters dictate their own hours, the CRA calculates EI fees on the number of days the chair renter offered services in the establishment.

Why is there an exception for barbers and hairstylists?

As it was explained by a CRA representative, this exception was put into place to secure the income of a hairstylist in the event that the salon owner is no longer able to provide the chair renter with a space to work from. Examples are salon owners who are evicted from their rented space or go out of business.  

What is the difference between independent contractors in the beauty industry versus other industries?

Nothing really. We searched for answers but could not find a clear explanation for this exception.

The exception to the exception.

While a salon owner must pay the employer portion of EI fees for independent contractors, this fee is eliminated IF the chair renter is incorporated.

What is the difference between a sole proprietorship, a partnership, and a corporation?

All of the above are forms of entrepreneurship. They differ in a few ways including the annual costs and taxes payable to the CRA. The main difference is that in a sole proprietorship or partnership, the business is an extension of you (and your partners if applicable) whereas a corporation is viewed as an entity external to you.  It even has its own SIN, however, it’s called a BN (Business Number).

There are many benefits to registering your business as a corporation. Learn more.

Where does this legislation come from?

It is believed that this legislation was created to protect the income of women and single mothers based on the occupation’s demographic at the time the legislation was created.

Two conditions apply to this employment insurance regulation:

  1. The barber or hairstylist offers services out of the establishment.
  2. The barber or hairstylist is not the owner of the establishment.

What if the salon owner also owns the building?

Unfortunately, it doesn’t matter. Salon owners who own the building must also pay EI fees.

What if the hairstylist does not pay EI?

Unfortunately, it doesn’t matter. The onus is on the salon owner to pay the employer portion of a chair renter’s EI whether or not they pay their own premiums.

Does this legislation affect room rentals for esthetics services?

No, this legislation only applies to Hairstylists and Barbers at the time this article was published.


EXECUTIVE SPA GROUP 

Beauty Industry Resource Centre

(780) 604 2772

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apprenticeship,beauty industry,canada,estheticians,hairstylists,mobility,nail technicians,provinces,regulations,requirements,skin care

Beauty Industry Mobility Across Canada

Beauty Industry Mobility Across Canada

Beauty Industry Mobility Across Canada

With the growing number of beauty professionals in this country, we thought we would take a look at employment mobility through Canada. While certification standards differ from province to province, here are some things you need to know if you are planning to move.

In Canada, all of the provinces and territories have regulation for hairstylists through the Red Seal Journeyman Certification. With this certificate, you are able to legally work from province to province. However, each province has different standards of training, so check out the National Employment Requirements to find out what you need to begin your trade. Barbering falls under the Hairstylist occupation as well, so certification will still be mandatory to practice this specialized craft.

As an Esthetician in Canada, however, you may find your mobility limited, as few provinces have regulation trade requirements:
  • New Brunswick regulates Estheticians.
  • Manitoba regulates their Electrologists and Estheticians through Apprenticeship Manitoba
  • Saskatchewan divides their esthetic regulations between Nail Technicians and Skin Care specialists, also through an apprenticeship and trade certification commission.

Training and on-the-job hours may transfer to a regulated province if you meet their individual criteria. If you are moving outside of a regulated province, your training and certification will be appealing to employers in a province that does not have these requirements.

While the country is looking to start standardizing esthetics, hairstyling is the only beauty industry career that has national standards. If you are considering moving, or you need more information about labour mobility in Canada, visit Worker’s Mobility.

EXECUTIVE SPA GROUP

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WHAT IT TAKES TO BE A MENTOR

What does it mean to be a mentor?

It’s that time again! Executive Spa Group is looking for employers to mentor our Beautiful Futures participants. If you haven’t heard of this program, Beautiful Futures is a government funded program that trains youth for a start in a beauty industry career.

The Beautiful Futures program has a heavy emphasis on soft skills designed to teach young people life and employment skills to make them successful all around. Because our program is designed for millenials, we try and fill the gaps employers face when working with this generation.

Responsibility and respect for the workplace are core values at Executive Spa Group. We try to foster a sense of pride and work ethic in our participants. We model other values such as accountability and teamwork in hopes that our participants follow our example.

Beautiful Futures participants spend 8 weeks in class learning one technical skill plus an array of employability skills such as conflict management and communication, customer service, change management, personal development, time and money management, etc.

After completing their class time at Executive Spa Group, they spend 12 weeks with an employer where they practice their newly learned skills. Eligible employers receive a wage subsidy of $6/hr. We normally place the participants in entry-level jobs. Examples of past placements include jobs doing:
  • Salon/spa reception
  • Salon/spa assistant
  • Hair apprentice
  • Sales Representative
  • Nail technician

What do I need to become a mentor?

Aside from meeting the requirements set forth by the Government of Canada, employers need to have the desire to make a difference in a young person’s life. The following are what we believe to be characteristics of a mentor.

Clear Communication

To be a successful mentor, you must be able to clearly communicate your expectations to your participant, and also be open to hearing your participant’s communication. Open communication in a safe space is the key to any relationship- your relationship with your new team member is no different.

Because of the nature of our industry, we may have jam-packed days when we don’t even have time to eat, or we may have days that we have no clients. Remember, young employees may not have the same sense of work ethic as you, therefore they may need your guidance in thinking of duties to fill their day. We find that providing your participant with written daily duties is a good way to start.

Examples of entry level duties include:
  • washing/folding/putting away laundry
  • cleaning duties (ex. washroom upkeep/floors/dusting…)
  • replenishing supplies/ restocking merchandise
  • followup calls/appointment reminders/filing client forms/booking appointments/greeting customers
  • assisting other staff members (ex. room prep/washing and disinfecting tools and implements)

Provide Feedback

Whether your participant is doing a good job or not, feedback is important for the growth of your new team member. During the first two weeks, we recommend you review your participant’s work to ensure they have completed their tasks well and up to your standards. Take the time to inconspicuously observe your participant and provide feedback when needed, as soon as possible. If correction is needed, always correct your participant in private.

Ability to Motivate and Lead

They say that to have a successful business, you must keep your staff happy. We couldn’t agree more. To be a successful mentor, you must lead by example with your positive attitude. There is no better way to teach young people then by leading by example. Let them hear your positive interactions with your clients so that they have a clear understanding of your level of customer service. Your new participant will adopt your way of treating clients and the other members of the team.

Create and Follow a Progress Plan

For the ultimate satisfaction with your new team member, it is important that you take the time to get to know your new employee. A progress plan can help you outline your mutual goals and set a timeline for achieving those goals.

For example, a progress plan can include goals such as:
  • gaining knowledge and confidence with the professional product lines carried at your salon/spa within the first month. This can be further broken down into week 1- cleansers, week 2- moisturizers, etc.
  • becoming independent with assigned regular duties within first 2 weeks of joining the team
  • learn skills required to accept payments by week 3
  • training on a new service after proven ability to complete initial skill in a professional and timely manner. For example, “after completing 30 pedicures and 30 manicures succesfully, you will be trained on waxing”
These are only examples of items in a progress plan. Your plan will be as unique as you and your business. Making the time to meet briefly with your new employee every 2 weeks in the beginning will help to keep your new employee motivated which in turn will keep you satisfied.

Creating a progress plan will also help you uncover other skills in your participant. For example, we have had participants with nursing, accounting, marketing, and teaching skills. Beautiful Futures has seen a variety of newcomers who change their professions for a beauty career when they start their new life in Canada. In the past we have had the opportunity to train nurses, teachers, doctors, accountants, I.T. professionals, media broadcasters, etc, in their new beauty career. Get to know your participant- they may hold some valuable skills!

Asserting your Authority

To be a successful mentor you must be able to assert your authority. Don’t be afraid to provide clear rules from the start. Rules regarding absences and tardiness should be clear, as well as required attire and overall appearance.

If your participant does not meet your expectations from the start, as the mentor, it is your responsibility to address any miscommunication and find a solution. During the 12 weeks, Executive Spa Group is only a phone call/email/text away to help you find solutions should you need us.

Remember, we previously spent 8 weeks with your new team member which means we were able to observe and track their strengths and areas for improvement. It also means we were able to build rapport with them which may allow us to mediate if needed.

HOW DO I PARTICIPATE?

Interested in participating as an employer?
Participants will be ready for work the first week of January 2019.
They have been trained in Manicures and Pedicures and Retail Makeup.
Apply OnLine to participate in this program  
Executive Spa Group

201, 10518 82 Ave. NW
Edmonton, Alberta
(780) 604 2772
executivespagroup.com

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alberta,beauty careers,beauty industry,canada,edmonton,employment,esg,funded programs,technical training

Beauty Industry Youth Employment Program

EXECUTIVE SPA GROUP BEAUTY INDUSTRY CAREERS

PROGRAM COMMITMENT: JANUARY 28-JUNE 14, 2019

Beautiful Futures has 2 components:

In-class (8 weeks)

M-F; 10am-4:30pm
JAN 28- MAR 22, 2019

You will acquire fundamental skills required for any job regardless of industry. However, our goal is to help you gain personal development, life and employment skills, and transferrable skills to take you anywhere you want to go in the beauty industry.

You will participate in Skill Enhancement on Fridays. Exposure Certification in Manicures and Pedicures will be awarded upon successful completion of your work experience, training quotas, and passing marks on required exams.

Placement (12 weeks)

35 hours minimum/week
MARCH 25- JUNE 14, 2019

During this 2nd portion, you will gain skills and work experience in entry-level beauty industry-related or retail jobs. Work experience can be completed at different salons, spas, medispas, health and wellness centres, and retail outlets throughout the city.

ESG does not guarantee placement in the beauty industry. Beauty industry job placements are awarded to participants that show readiness, ability, and willingness to work. ESG assesses your suitability for different types of employment throughout the classroom component.
NOTE: Participants must accept the placement assigned to them and must make themselves available for work for a minimum of 35 hours per week. Completion of the Work Experience component of this course is mandatory for certification in the technical training received.

Is funding provided for this program?

Yes, funding is provided by the Government of Canada to help cover the cost of basic living expenses while obtaining employment training. Financial assistance is provided to participants throughout the classroom component on an hourly wage at Alberta’s minimum wage.

The placement component is a paid work experience. You earn a wage while completing this portion. In some scenarios, the possibility exists to turn the work experience into a permanent position, so make sure to impress your employer! Days of the week will vary amongst employers, but remember, weekends are busy days for the beauty industry, so be prepared to commit!

NOTE: Do not apply if you are not prepared to work weekends! The Beauty industry thrives on the weekend and weekend work is expected of an entry-level employee.

Important note about this program

Because a wage is provided for attending this program and receiving skills training, participants are encouraged to think of the program as work. While this program is intended to help you develop personally and professionally, we have set standards of attendance and performance. Just as with any employer, we adhere to a probationary period and reserve the right to terminate your enrolment in the program if expectations are not met.

Who can participate in this program?

ELIGIBILITY CRITERIA:

  • 15-30 years of age at the time of class start date;
  • Must be interested in joining the beauty industry;
  • Must be a Canadian citizen, permanent resident, or have been granted refugee status in Canada;
  • Must be legally entitled to work in Canada; and
  • Must be in need of assistance overcoming employment barriers.
  • Must not be working or attending a program/school

EXAMPLES OF EMPLOYMENT BARRIERS

  • Lack of work history;
  • Lack of confidence and self-esteem;
  • Lack of employability skills; and
  • Other social factors

HOW DO I APPLY?

You can apply ONLINE to participate in ‘Beautiful Futures’. Thank you for your interest.

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Store-bought vs. Professional skincare

Enlightening your clients: The difference between store-bought and professional skincare

Selling skincare at work comes naturally when you are able to answer a client’s questions regarding the professional lines carried at your salon or spa. When you have the answers, your sales pitch can turn into a fun, fact-filled conversation.

Have you ever had a client ask you what the difference is between store-bought and professional skincare?

Walking up and down the skincare aisles of the drugstore can leave your clients’ head spinning with promises of “No More Wrinkles” or “The Best Acne Treatment” and my personal favourite, “The Best Anti-aging Cream”.

The fact is there is no one product on the market that can deliver on these claims alone, especially ones found at the drugstore.

Why?

Because to get results to actually back-up these claims clients need to use high quality products with an array of ingredients and these are not found on shelves.

They are found at spa’s, medi-spas and dermatologist offices. Places such as ‘Sephora’ and ‘Shopper’s Beauty Boutique’ are also a few good places to get good quality products.

Let’s take a deeper look at the difference between store-bought products versus professional skincare, so that we can educate our clients on the difference.

Ingredients and Dosages

The skincare market is a billion dollar industry which relies heavily on marketing to get people to pick their products over others. They usually do this is by using some of the catch phrases mentioned at the beginning of this article.

People who are not in the skincare industry, for example our clients, may not be able to verify if the ingredients have the ability to actually benefit their skin.
Additionally for safety reasons, store-bought products cannot have high amounts of active ingredients because they must be safe for the general public to pick off a shelf, without consultation with a professional. For this reason, drugstore products usually have low levels of active ingredients which may not, and more often, does not, live up to their promises.

On the other hand…

Professional products contain high amounts of active ingredients that can actually back-up the claims they promise.
They contain numerous active or as I like to call them “performance” ingredients such as antioxidants like Vitamin C, B, and Ferulic acid, acne fighting ingredients like Salicylic acid, Anti-Aging acids such as Glycolic acid and the best ingredient to fight aging… Retinol… just to name a few.

The reason professional products are not sold in stores is because of the science behind the products. People selling these products have to be properly trained on skin analysis, ingredients, and contraindications. They are expected to educate the client on how to use the products safely and recommend the appropriate products for their skin/ skin concerns.

In conclusion, when it comes to skincare the best thing to do is educate your clients on the differences between professional and store bought products, the price point may be a bit higher but if results are what your clients want; knowing what they need to use to get those results will usually out weigh any price concerns.

Shauna Jenkins
EXECUTIVE SPA GROUP

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Executive Spa Group

info@executivespagroup.com
(780) 604-2772
executivespagroup.com
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