Manchester hairdresser wins ‘landmark’ lawsuit for people working in the beauty industry

A self-employed hairdresser has won the right to claim for notice, holiday and redundancy pay in a ‘landmark case’ for the beauty industry. 

Megan Gorman, 26, was a self-employed hairdresser at a Terence Paul salon in Manchester city centre, however, she argued the working practices made her ‘effectively an employee’. 

Her lawyers claimed the successful judgment of an employment tribunal hearing could affect thousands of people who work in the beauty industry. 

Gorman had to work set hours in the salon, which also kept 67% of her takings. She worked their for six years until it closed in 2019. 

Gorman had an Employment Tribunal hearing in Manchester where the judgment went in her favour according to her lawyers.

The case furthers legal decisions on ‘worker’ status, as with the case in Uber drivers which is currently on appeal from the Court of Appeal. 

The judgement could affect people in the beauty industry as well as wider industry’s such as dentists, hygienists, delivery drivers and bookkeepers.

Judith Fiddler, of Direct Law & Personnel said: “The whole hairdressing industry and many others will be affected by this decision.

“The significance is huge, as many people who think they are self-employed are actually not.

“The influence of the Pimlico Plumbers and Uber drivers’ cases has changed the climate.

“Our case was that Meghan was treated as an employee and was not genuinely self-employed, and therefore should benefit from employment law rights.

“At all times she was treated as an employee and her bosses exercised tight control over all aspects of her work.”

Industry figures explain that of the some 330,000 people who work in the beauty industry, 80% are women. 

Ms Gorman joined Terence Paul in 2013 as a 19-year-old on a contract headed ‘Independent Contract for Services’ as a self-employed hairdresser.

She is now in pursue of further claims against the company including unfair and wrongful dismissal, sexual discrimination and a failure to provide a written contract of employment, as well as claiming for holiday pay, according to her lawyers. 

Terence Paul claim the company’s self-employed hairdressers had control over their hours, days they worked, shift times, treatments they could give and holidays.

Gorman disputed this explaining she had to work 9am-6pm Monday to Saturday with no control over pricing or discounts. She also had to use company products, conform to Terence Paul’s dress standards and had to inform the salon if she wanted time off.

She explained: “They clearly had the power and control. I did not believe it could be considered I was in business on my own account.

“I had thought for some time that the contract they had in place was not right, saying I was self-employed when they had all those rules in place.”

TUC senior employment rights officer Tim Sharp said: “This is yet another case of the courts calling out false self-employment.

“The Government needs to use its planned Employment Bill to ensure that everyone gets full rights unless the boss can prove they are genuinely self-employed.”

This news comes following claims that the beauty industry has been abandoned by the government throughout coronavirus lockdown and that those industries where employment is highest among women have been hit the hardest. 

The government failed to show an understanding of what gender played in the crisis and failed to produce an equality impact assessment for any of its new policies.

The beauty sector – which has links to 590,000 wider jobs and contributed £7bn in tax revenue in 2018 – was poked fun at by Prime Minister Boris Johnson during Prime Minister’s Questions. Including the reopening of barbers and beard trimming services but no facials, eyebrow or eyelash treatments which have since been allowed to continue after the ‘Why Can’t I Work’ campaign.