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LETS GET DOWN TO BUSINESS.

Question :
Hi there I lease a salon – the lease is outdated so does not feature star of emergency or no access clause therefore full rates are still applicable – have two girls renting a chair they have applied for covid 19 subsidy but they also quit effective immediately when lockdown was enforced They have completely disregarded the contracts and one has even blocked all access or forms of communication with me they’ve stopped paying all outgoings saying they can’t afford it so not only do I need to continue topping up my payment I need to pay there’s somehow or I will end up breeched I have yet to have my subsidy come through also am a solo mum have rent etc  please help if you can any advice appreciated 

Question submitted 18/04/20 @ 06:06am
Industry: Legal
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  • Hi there,

    First, talk to your landlord. Even if you don’t have a right to an abatement in your lease most decent landlords are providing one (especially if you have been a good tenant). At worst, you should get a deferral while no income is coming in. Again, talk to your landlord.

    Are the two girls employees or contractors? If they are renting a chair they sound like contractors? If they are contractors, not sure if you are responsible for their subsidy or topping it up? One of the employment lawyers on here may be able to clarify.

    Stay strong – lots of people will want to go to the salon when they are able!

    Phil

    Hi, yes I agree with Phil – talk to your landlord. If you have a good history I am sure they would much prefer to come to a fair arrangement with you than to take a harsh line and be faced with having to find another tenant – there will not be a lot of potential new tenants around.

    If your landlord doesn’t cooperate the government is about to introduce changes to give more an additional 20 working day for a commercial tenant to catch up on overdue rent before the landlord can terminate.

    My understanding of the chair arrangements that many hairdressers run is that people who rent chairs are effectively self-employed, and you are effectively their landlord. So by stopping paying they will be in breach of their contract with you. If they have a notice period under the chair agreement they would be required to pay the chair rental for the notice period, and if you don’t have a formal agreement with them there would likely be some form of deemed notice requirement (if they pay on a monthly basis this is likely to be a month). However if they are not fronting up with the money they owe you then you would need to take debt collection action.

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