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Gym operators hiring personal trainers –make sure
you consider the options and understand the legal consequences of
getting it wrong
Commercial gyms may engage personal trainers to work with their
clientele and add value to the overall membership experience. Gym
operators need to consider their approach to engaging personal
trainers to maximise profits and minimise legal issues. This
article discusses the options available to gyms and the issues that
can arise.
How to engage personal trainers for a commercial gym
There are three main approaches open to gyms seeking to bring on
PTs:
hiring as employees
engaging as independent contractors
renting gym space to personal trainers
Personal trainers as employees or contractors
Many operators now seek to avoid employing PTs, instead
promoting a system whereby the trainers run their own business from
the gym. PTs promote their services personally and split their
revenue with the gym on a negotiated basis.
The benefits of this system are obvious, as the gym saves money
on wages and avoids the administrative burden associated with
employing staff in an industry with relatively high turnover.
However, the arrangement is not without risk, particularly in
respect of the punitive sham contracting provisions found in
Australian employment law. Legal advice should be sought before
making the decision to classify a worker as an independent
contractor.
Personal trainers paying rent to use gym space
A more "hands off" approach by operators is to rent
out their gym space to PTs for an agreed ongoing fee. This
arrangement is little more than a licence to use the gym, leaving
PTs to operate their business and collect their own fees from
clients among the gym's patrons.
For operators opting to collect a licence fee, the arrangement
must be carefully documented to address issues such as insurance,
damage and disputes.
The importance of gyms and personal trainers getting the
documents right
No matter which approach a gym opts for, it's critical that
the necessary documentation is drafted correctly. Failing to seek
legal advice or attempting to piece together documents from
examples found online can prove costly in the long term.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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