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Labour Relations Act, 1995 (Act No. 66 of 1995)


Bargaining Council for the Hairdressing and Cosmetology Services (Semi-National)

Main Collective Agreement

11. Commission Agreements



11.1 In all areas, an employer and an employee who earns commission (commission-earner) may agree that the employee is to receive commission on services (psc) or sales (retail commission) or both (a commission agreement). However, a hairdresser in all areas shall be restricted to a Commission Agreement which complies with Annexure C.


11.2 A commission agreement shall be in writing and signed personally by the employee and by or on behalf of the employer, and shall contain the following particulars:

11.2.1         the identity of the parties;

11.2.2         the rate of psc (personal services commission), and the rate of any retail commission, and the conditions of entitlement thereto;

11.2.3         the day of the week or month when commission earned shall be due and payable;

11.2.4 the period of notice to be given by the employer or the employee to cancel or re-negotiate the terms and conditions under which the commission is payable and any commission payable in terms of this clause shall be entered into the Remuneration/Basic Salary/Wage Register in the same manner as remuneration or basic salary or wages.


11.3 The commission agreement shall be signed by both the employee and the employer, in the presence of two witnesses.


11.4 Every employer shall within seven days of being requested to do so supply the council with a copy of every commission agreement concluded with a commission-earner.


11.5 In all areas, all qualified hairdressers shall be deemed to be employed in terms of a commission agreement which complies with Annexure C.


11.6 If a commission agreement is not in writing, then whether or not it complies with this clause, it shall for all purposes be deemed to provide that the employee is entitled to personal services commission on the gross takings at a rate of 40% and to retail commission of 5% (If the establishment is registered for VAT, VAT shall be deducted from the gross takings or products sales).


11.7 If the employer is unable to produce a record of takings for an employee employed, or deemed to be employed, in terms of a commission agreement, and vouched for by that employee, the record of takings alleged by the employee shall be deemed to be the takings of that employee until the contrary is proved by the employer.


11.8 If a hairdresser and their employer agree that the employee (hairdresser) shall work on:
(i) a basic salary only structure, or
(ii) a basic salary plus commission structure

the basic salary or wages, payable in the case of (i) or (ii) shall not be lower than the prescribed basic salary or wages.

However, should the parties agree to either of the above structures, in terms of (i) or (ii), they must apply to the Council for an exemption to work on either of these structures.