A Canadian Independent Contractor Agreement for Hair Stylist Services is a contract between a salon owner (or booth rental establishment) and a hair stylist who provides cosmetology services as an independent business operator rather than a salon employee. The salon and beauty industry in Canada operates primarily under two business models: employment (where the salon hires stylists as employees subject to provincial employment standards legislation) and booth rental or chair rental (where stylists lease station space from the salon and operate their own independent businesses).

The Canada Revenue Agency (CRA) applies the four-fold test from the Supreme Court of Canada's decision in 671122 Ontario Ltd. v. Sagaz Industries to determine whether a salon stylist is an employee or independent contractor. The CRA examines: the degree of control the salon exercises over how the stylist performs their work (scheduling, pricing, methods, products used); ownership of tools and equipment (whether the stylist provides their own styling tools, dryers, products, and supplies); the stylist's chance of profit and risk of loss (whether they set their own prices, build their own client base, and bear business expenses); and the degree of integration into the salon's business. A booth renter who sets their own hours, selects their own clients, determines their own pricing, provides their own tools and products, and pays rent for their station space is generally appropriately classified as an independent contractor.

Hairstyling in Canada is regulated at the provincial level through apprenticeship and certification legislation. In Ontario, hairstyling is a compulsory certified trade under the Ontario College of Trades and Apprenticeship Act, 2009, meaning only individuals who hold a Certificate of Qualification or are registered apprentices may legally provide hairstyling services. In Alberta, hairstyling is a designated trade under the Apprenticeship and Industry Training Act, requiring completion of an apprenticeship program or successful completion of a trade exam. In British Columbia, hairstyling is a voluntary trade under the Industry Training Authority, meaning certification is available but not legally required. In Quebec, hairstyling regulation falls under provincial education and training requirements rather than a compulsory trade certification system.

The agreement addresses booth rental terms, compensation structure (flat-rate rent, percentage-based commission, or hybrid arrangements), scheduling and access hours, product and supply responsibilities, client relationship ownership, GST/HST obligations under the Excise Tax Act, confidentiality protections, non-solicitation provisions, and termination procedures. It provides both parties with a clear framework that supports the independent contractor classification while addressing the industry-specific licensing, health and safety, and client management requirements that distinguish salon work from other contractor relationships.

This agreement is essential for salon owners in Canada who operate on a booth rental or chair rental model, where stylists lease individual workstations and run their own client businesses within the salon space. The agreement establishes the terms of the space rental, the boundaries of the independent relationship, and the responsibilities of each party regarding licensing, insurance, sanitation compliance, and client management.

The agreement is needed when a new stylist joins a booth rental salon, when converting an existing employee-based salon to a booth rental model, or when renegotiating terms with current booth renters. It is particularly important given that the CRA closely scrutinizes salon-stylist relationships and frequently reclassifies what salons describe as contractor relationships as employment. A well-drafted agreement that clearly establishes the booth rental arrangement and the stylist's business independence helps both parties defend the classification if the CRA conducts an audit.

Mobile stylists who provide services at clients' homes, hotels, or event venues and are engaged by bridal parties, event planners, or concierge services also need independent contractor agreements with each client or referring business. Wedding and event hairstylists who are booked directly by clients or through wedding planners operate as independent contractors and need agreements that address the unique aspects of event-based work, including deposit policies, trial session fees, travel charges, and the number of individuals to be styled.

Freelance stylists hired for specific projects such as fashion shows, photo shoots, film and television production, or editorial work should have agreements in place for each engagement. Stylists who contract with corporate clients for on-site services also need formal agreements.

The agreement is particularly important when the arrangement involves significant financial terms (such as high-value booth rental fees), when the stylist will be using the salon's address for their business registration, or when there are provisions regarding client ownership, non-solicitation, or intellectual property rights related to the salon's brand and marketing materials.

The agreement must identify both parties with their full legal names and Canadian addresses. If the stylist operates under a registered business name or as a sole proprietorship, this should be specified to reinforce independent contractor status for CRA classification purposes.

For booth rental agreements, the space arrangement terms must specify the exact station or area being rented, the rental rate (weekly or monthly flat fee, or a percentage-of-revenue arrangement), what is included in the rent (utilities, Wi-Fi, reception services, towel laundering, common area maintenance), the stylist's access hours (whether they have key access outside salon operating hours), and whether the stylist may sublease or share their station. The agreement must clearly establish that the stylist is renting space, not receiving compensation for services, to support the independent contractor classification.

The independent contractor status clause must address each element of the CRA's four-fold test from the Sagaz Industries decision: the stylist controls their own scheduling, pricing, service methods, and client selection; the stylist provides their own tools, equipment, and products; the stylist bears financial risk through paying rent and business expenses and has the opportunity for profit through building their own client base; and the stylist operates independently with the ability to work at other locations or for other clients.

Licensing and regulatory compliance provisions must require the stylist to maintain a current provincial cosmetology or hairstyling certificate of qualification (where required by provincial legislation), comply with provincial health and sanitation regulations for salon premises, and maintain any continuing education credits required for licence renewal. The agreement should specify that the stylist is responsible for their own tax obligations, including reporting income to the CRA, remitting CPP self-employment contributions on Form T2125, and charging GST/HST if their taxable revenue exceeds CAD $30,000.

Client relationship provisions should address the critical question of client ownership. In legitimate booth rental arrangements, the stylist builds and owns their own client book, which they take with them if they leave. The agreement should clearly state that clients are the stylist's clients. Non-solicitation clauses (restricting the stylist from recruiting other stylists or staff away from the salon) may be included, but non-compete clauses restricting where the stylist can practise after leaving are disfavoured under Canadian common law and may be unenforceable if unreasonable in scope, duration, or geographic area.

The compensation section must specify the payment structure in Canadian dollars, whether that is a flat monthly booth rental fee, a percentage-based commission, or a hybrid arrangement. The tax clause must state that the stylist is responsible for their own income tax reporting, CPP contributions, and GST/HST obligations. The confidentiality clause should protect the salon's proprietary business information, marketing strategies, and client data, while respecting the stylist's ownership of their own client relationships.