The year 2020 is bringing many anticipated changes to government-regulated industry standards.

While some occupations in the beauty industry are heavily regulated, others remain relatively unsupervised. This has led to numerous consumer complaints varying from spa and worker hygiene to severe injury resulting from negligence to Alberta Health and Alberta Health Services.

Through discussions with industry representatives, business owners, and provincial, territorial and federal health partners and stakeholders, the government of Alberta (Alberta Health) has updated previous Health Standards and Guidelines. For clarification purposes, the new updates apply to all types of personal services businesses including commercial, home-based, mobile, special-event, and vehicle-based businesses.

This article breaks down and interprets the updates into 5 sections of the Personal Services Standards guidelines.

If you are new to the beauty industry and are operating a home business, we recommend our Canadian Spa Industry Standards course to ensure that your business meets regulatory requirements and obligations for the protection of public health and your growing business.

---

SECTION 1- OPERATIOR’S DUTIES

SECTION 2 – PERSONAL SERVICES WORKERS’ DUTIES

SECTION 3- COMING SOON

---

EXECUTIVE SPA GROUP

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

Congratulations Molly on your Manicures and Pedicures and Lash Extensions certification!

Molly is now a PRO at manicures and pedicures and lash extensions and is a great addition to the beauty industry! Visit Molly in her new “home away from home” at Elements Day Spa in Leduc, Alberta.

EXECUTIVE SPA GROUP can help you access grants to pay for your esthetics training courses.

GRANT ELIGIBILITY REQUIREMENTS

I AM CURRENTLY WORKING.

If you are currently working, you should have a conversation with your employer regarding your future career goals and how they will benefit the workplace.

Your employer can apply for a grant to cover 2/3 of all training costs. You can only register for your desired training until your grant application has been approved. It usually takes about a month for the application to be approved, so don’t waste time, apply now!

If you are a new employee and have been there for less than 30 days, your employer is eligible for 100% of training costs in grant funding.

We can help with your grant application process.

Have your employer call or email us. We can make a trip to your workplace to help you sort out the process.

Can I pay for the training myself?

Yes. As the trainee, you can fund your own training costs, but your employer must apply on your behalf. Keep in mind that you will have to pay all training costs up front. Your employer will be reimbursed and will have to provide documentation demonstrating they in turn reimbursed you.

However, these types of grants are intended for your employer to invest in your development, therefore, it is expected that they will invest 1/3 of the costs, even if you are the one who paid for it up front.

When can I expect reimbursement?

You have 30 days after you complete your training to submit proof of completion in order to receive your reimbursement. On average, reimbursement takes 4-6 weeks post submission, so submit asap!

I AM NOT WORKING ATM.

If you are not working at the moment and have been unemployed for 30 consecutive days or more, you have the option to find an employer who will sponsor your training. When an employer hires a NEW employee, 100% of the training costs can be funded.

This option works especially well for experienced estheticians who require an additional skill to work at a certain spa.

If you are new to the beauty industry, we recommend applying for Receptionist or Assistant positions and working out a training plan with your new employer.

If you are having difficulty finding a sponsoring employer, you have other options, call or email us for more information.

ESTHETICS TRAINING COURSE SUMMER SCHEDULE

---

EXECUTIVE SPA GROUP
(780)604-2772
info@executivespagroup.com

Cosmetology Choices: Understanding Options For Your Hairstyling License

Looking for the perfect career? If you:

• Are fueled by creativity
• Love the idea of socializing at work
• Want to help people feel better about themselves
• Like the idea of flexible hours and fun working environments

the Hairstylist occupation could be the right path for you! The Alberta Learning Information System has a great breakdown of this exciting career. Before you jump right in, you have two primary options to consider. In Alberta, Hairdressing is considered a Red Seal Journeyman Trade. This means higher standards in Alberta for Hairstylists. Certification is based on education and hours worked in the salon.

Option One: The Apprenticeship Program

The Apprenticeship path will take you two years to complete. This includes a minimum of 1400 hours of on-the-job training and 10 weeks of technical training each year (20 weeks total). The benefit of this route is the cost effectiveness and the real life, hands on training.

Steps to obtaining your apprenticeship

1. Secure a job in a salon. This could be getting hired as a salon technician, receptionist, or retail specialist. Your supervisor should be a Journeyman Hairstylist to train you and confirm your hours worked. 2. After securing employment, you may apply to be a Registered Apprentice in Alberta. Once you have completed your application and pay the $35 registration fee, you may be issued an Apprenticeship Card and Blue Book (this is the record log in which your worked hours are tracked). As an Apprentice Hairstylist, you are able to buy product (no chemicals!) from salon distribution centers, and you are legally able to handle the tools of the trade. 3. Your on-the-job hours are divided into two twelve-month periods. During each period, you are expected to complete 1450 hours (this is 40 weeks based on 35 hours a week). 4. Technical training is arranged by Alberta Apprenticeship and Industry Training and is currently offered at DelMar College in Calgary and MC College in Edmonton.

• Your technical training is divided into Period One and Period Two. Both are 10 weeks in length (700 hours total). You may be eligible for financial benefits while in technical training. The average cost of tuition for both periods generally doesn’t exceed $2500. Tool kits would be available for learning purposes only, and it would be your responsibility to invest in your kit for your work experience.

5. Once your on-the-job training, technical training, and corresponding examinations (theory and technical exams for Period One and Two) are successfully completed, you are eligible to take the theory and technical exam for your Interprovincial Red Seal.

---

Don’t forget about grants and loans available!

• Alberta Student Aid provides loans and grants to apprentices registered in the Alberta apprenticeship program with Apprenticeship and Industry Training who are attending an approved technical training program as a full-time student.
• The Canada Apprentice Loan is an initiative of the Government of Canada to help complete your apprenticeship in a designated Red Seal trade. You can apply for up to $4,000 in interest-free loans per period of technical training. The money would be available to help with tuition, tools, equipment and living expenses, to cover forgone wages and to help support your family.
• The Apprenticeship Incentive Grant (AIG) is a taxable cash grant of $1,000 per year, to a maximum of $2,000. This Grant helps registered apprentices get started in the designated Red Seal trades.
• The Apprenticeship Completion Grant (ACG) is a taxable cash grant of $2,000. This Grant helps registered apprentices who have completed their training to become certified journeypersons in the designated Red Seal trades.
• Canada Revenue offers a tax benefit for Tradespersons’ Tools Deduction . Apprentices may be able to deduct the cost of eligible tools bought to earn employment income as a skilled tradesperson.

We recommend you review the Hairstylist Apprenticeship and Industry Training Outline and the Hairstylist Exam Outline and the newest updated information for the Apprenticeship Program before you begin your journey.

---

Option Two: Full Time Cosmetology Program

Although it is not necessary to attend a full-time program to enter the beauty industry, many cosmetology programs are available for you to enroll in in Alberta before you get a job in a salon. The advantage of this is that you have a wide selection of schools to choose from to ensure you receive the education you require. Full time programs are beneficial to those who feel they need to be trained before they enter the industry. Career training facilities, like full-time cosmetology schools, are independent, private institutions that are regulated by the Private Vocational Training Act. The cost of a full-time cosmetology program in Alberta ranges from $11,000 to $16,000, and generally includes a starter toolkit. These programs can take anywhere from 9 months to 1 year to complete, depending on the facility’s required hours – this is, on average, 1400 hours. The Alberta Apprenticeship Board, however, only requires 1,050 hours from an approved institution. An advantage of some cosmetology programs is the length of time spent in a learning environment as opposed to a working environment. Some participants find this beneficial as they feel they may need more time learning to feel comfortable before they start taking clients. The facility may also teach advanced techniques, outside of what the Apprenticeship Program deems necessary for licensing. Alberta Advanced Education has a great page on what to know before enrolling in a Private Vocational Training School. The Approved Technical Training Schools in Edmonton are: MC College CLI College Est-Elle Academy of Hair Design Eveline Charles Academy

Barbering is not a separate license in Alberta.

It is very important to know that Barbering is not a separate license in Alberta. Although there are training facilities specifically for barbering, you should be aware that a full Hairstylist Apprenticeship (including technical training) needs to be completed for licensing. There has been an important change to note regarding technical trade schools. Previously, on-the-job training hours were credited for completing a full-time hairstyling program at an approved school. As of September 1st 2018, on-the-job work experience credit will only be given on a case-by-case basis. This means that you are no longer granted 1400 hours from your training provider that can be used to lessen your time as an apprentice. Once technical schooling has completed, you still must register as an apprentice and complete 2800 on-the-job hours. READ MORE. Knowing your options will help you make an informed decision regarding your education. For more information on Hairstyling careers contact (780) 604 2772 #103. EXECUTIVE SPA GROUP Career and Employment Centre Alberta Beauty Industry