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FITNESS, HEALTH, WELLNESS

features

Ask an expert: Gainfully employed?

Many gyms contract PTs as self-employed workers, but with a parliamentary committee questioning the fairness of such contracts, could a change in the status quo be on the horizon?

By Kath Hudson | Published in Health Club Management 2018 issue 3
A rethink of the way gyms approach PT staffing could help ensure everyone is treated fairly / shutterstock
A rethink of the way gyms approach PT staffing could help ensure everyone is treated fairly / shutterstock

Last November, The Gym Group hit the headlines for the wrong reasons. Frank Field MP, chair of the Commons Work and Pensions Select Committee, placed the company’s PT contracts in the spotlight. He argued that restrictions placed on the company's "freelance independent" PTs in fact make them employees, who should be entitled to the "rights and protections that come with that status".

Self-employed PTs have helped low-cost operators to grow their businesses and engage more people in health and fitness. But while many PTs report that the self-employed set-up can work well for them, others disagree. With the government now showing an interest, it appears that the industry may have to look more closely at its current PT employment practices to ensure a fairer deal for all. But what does this entail?

Philip Landau,

Founder,

Landau Law

Philip Landau
Philip Landau

The defining feature of self-employment is independence. This means that a PT who is truly self-employed, and otherwise known as a “contractor”, should be completely free to accept or reject work – there should be no minimum number of sessions provided per week.

They should also be contracted to provide the service and nothing more. Employees have to fulfil any reasonable requests their employers make, such as cleaning the changing rooms, but a self-employed PT would not be expected to perform these kinds of tasks.

Having a workforce made up of self-employed contractors is much cheaper than workers. Self-employed people are responsible for making all their own tax and national insurance arrangements, do not have to be paid the minimum wage, or sick or holiday pay. The reason we’re seeing so many cases in the courts is that employers want to use the self-employed model to keep costs low while retaining high levels of control over their workforce. For example, many facilities require self-employed PTs to use a holiday booking system, accept a minimum number of client inductions a week and wear uniforms.

Going forward, gyms need to make a choice: either accept that their PTs are workers and provide the appropriate benefits, or relinquish some control and make them truly self-employed. Parliament and the courts are now wise to the need for stronger protection of workers’ rights, so employers must avoid taking advantage of the goodwill of self-employed workers.

"Employees have to fulfil any reasonable requests their employers make, such as cleaning the changing rooms, but a self-employed PT should not be expected to do the same"

Being self-employed provides the PT with the freedom to work when and for who they want / Photo: SHUTTERSTOCK
Being self-employed provides the PT with the freedom to work when and for who they want / Photo: SHUTTERSTOCK

Jon Nasta,

Director of Ecommerce and Marketing,

Xercise4Less

Jon Nasta
Jon Nasta

If the industry wants to push past the current 15 per cent penetration rate, as well as be taken seriously by the government, we have to look at our employment practices. PTs play one of the most important roles in our clubs: they spend the most time with the members and give them what they want in the form of the expert guidance and support required to achieve their goals.

With this in mind, last year we took the decision to flip the self-employed model and now employ every personal trainer at Xercise4Less. In the past we could have been accused of having our cake and eating it: we didn’t pay to train the PTs, but we still expected them to offer a good service and to pay us rent. This approach allowed us to grow our business rapidly, but cracks were appearing in the system.

Some of the customer feedback we received in 2016 was alarming, including some PTs taking money from clients and disappearing without giving them all of their sessions. Since bringing our PT service in-house, the worst feedback we get is that a member hasn’t been able to get their favourite instructor for their particular time slot – and this is something that can be easily managed.

Under our new system, all of our PTs are employed between 24 and 40 hours per week. We provide the flow of clients though our online PT platform and our app, so members can feel confident that they are buying from Xercise4Less, rather than the individual PT. However, our software also allows customers to book their favourite PT or change their PT as often as they like.

Making all our PTs employed hasn’t worked for all. The superstar PTs – those earning more than £100k – left and set up their own studios. But the majority of the others liked the change, as it meant a steady income, job security, the ability to get a mortgage, holiday pay and sick pay. An average PT earns around £30k, which in my opinion is a decent salary.

It has been more work than we expected and it has been expensive, but it was a necessary move that has helped us to take control of the entire customer journey and has set us up to move the business forward.

"In the past we could have been accused of having our cake and eating it: we didn’t pay to train the PTs, but we still expected them to offer a good service and to pay us rent"

As employees of Xercise4Less, PTs are able to earn a steady income and gain job security / Photo: SHUTTERSTOCK
As employees of Xercise4Less, PTs are able to earn a steady income and gain job security / Photo: SHUTTERSTOCK

John Treharne,

CEO,

The Gym Group

John Treharne
John Treharne

At the start of last year, The Gym Group identified that we needed to make some changes to our PT model. With that in mind, we began working on a more effective model, which is currently being trialled in a newly opened gym before being rolled out across the whole estate later this year.

When we began 10 years ago, PTs were not part of our original business model, but we wanted our members to have access to that service so we allowed PTs to operate out of our clubs – rent free and on a totally self-employed basis. We didn’t derive any financial benefit.

Now that we have grown the business to 129 gyms and more than 600,000 members, we have found that the arrangement we had in place doesn’t work well enough for us or for our customers. For this reason, and in order to ensure a quality, standardised service across the estate, we are trialling a new model that offers PTs employment on a part-time basis together with the payment of a small rent to The Gym Group for working with their independent clients outside of contracted hours.

This means that the PTs now benefit from the associated employment rights while having the flexibility to run their own business. Alternatively, PTs who prefer to be self-employed can stay as such, but they will have to pay a market rent to practice in our gyms. This model will allow our general managers to plan better and The Gym Group to offer a more consistent service to our members.

"Now that we have grown the business to 129 gyms and more than 600,000 members, we have found that the old PT arrangement doesn’t work well enough for us or for our customers"

The Gym Group is trialling a plan for PTs to stay self-employed or choose part-time employment / Photo: SHUTTERSTOCK
The Gym Group is trialling a plan for PTs to stay self-employed or choose part-time employment / Photo: SHUTTERSTOCK

Nikki Withers,

Self employed PT,

Skinny Jeans Fitness

Nikki Withers
Nikki Withers

Working as a PT, I’ve experienced a number of models, each with various advantages and disadvantages, however working as a salaried PT, with commission for each client was my least favourite option. Although I always knew that I would come home with a pay package, as well as benefit from sick pay, holiday pay and a pension, it was demotivating because the basic salary was around minimum wage. This felt offensive given the amount of training and qualifications I had invested in. Being paid £17 for a client when I was charged out at £47 also had a negative impact on my confidence.

Another model was to work for free at a gym and scout for PT clients among the members. As PTs, we were allowed complete freedom to book our clients and set prices, but it was very competitive and those who did best were great at sales, but not necessarily the most knowledgeable PTs. It was also daunting to have no pay whatsoever, as in some months like December the gym was very quiet.

I also worked at a gym where you paid rent up front for the month ahead and then had the freedom to set your own client rates. Again, this model has an element of risk, as you start out the month in the red. But it can work well for established PTs.

My favourite gym-based model was to be salaried for certain hours, and then generate my own PT work which could be done at any time, even within shifts. I paid the gym a commission for each client. As I ran classes I got to know members and there was also a photo wall to advertise the PTs, which was helpful for marketing.

Whatever model gyms choose to work with, it’s important to make sure their PTs are taking home enough money to compensate for their skills as well as the amount of time, energy and money they have nvested in getting themselves qualified. Paying minimum wage is not acceptable. Offering employee status and a salary gives an element of security and is good for new recruits. PTs also need to be respected and not given cleaning jobs on the gym floor, as this undermines their expert status in the eyes of potential clients.

"My favourite gym-based model was to be salaried for certain hours, and then generate my own PT work which could be done at any time, even within shifts"

Some gyms ask PTs to work for free in exchange for being able to sign up gyms members as private clients / shutterstock
Some gyms ask PTs to work for free in exchange for being able to sign up gyms members as private clients / shutterstock
Sign up here to get HCM's weekly ezine and every issue of HCM magazine free on digital.
Bodyism incorporates prehab into all of its classes
Bodyism incorporates prehab into all of its classes
Gymbox offers a 30-minute prehab class at two of its locations, designed to improve members’ flexibility
Gymbox offers a 30-minute prehab class at two of its locations, designed to improve members’ flexibility
Sports injury clinic Pure Sports uses the principles of prehab in its one-on-one strength and conditioning sessions
Sports injury clinic Pure Sports uses the principles of prehab in its one-on-one strength and conditioning sessions
Sports injury clinic Pure Sports uses the principles of prehab in its one-on-one strength and conditioning sessions
Sports injury clinic Pure Sports uses the principles of prehab in its one-on-one strength and conditioning sessions
Sports injury clinic Pure Sports uses the principles of prehab in its one-on-one strength and conditioning sessions
Sports injury clinic Pure Sports uses the principles of prehab in its one-on-one strength and conditioning sessions
https://www.leisureopportunities.co.uk/images/289940_307715.jpg
Is it time to rethink your PT employment contract? We ask the experts how these can be made fairer...
Philip Landau, Landau Law: founder Jon Nasta, Xercise4Less: director of ecommerce and marketing John Treharne, The Gym Group: CEO Nikki Withers, Self employed PT; Skinny Jeans Fitness,PT employment contracts, PT employment practices, self-employed workers
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Experience the pinnacle of fitness and luxury at the premier industry event, Sibec EMEA, set against the breathtaking backdrop of the Fairmont Monte Carlo this Autumn.
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Company profile: Parkwood Leisure
As a family-owned business built on strong family values, Parkwood Leisure takes pride in offering ...
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Click on a catalogue to view it online
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features

Ask an expert: Gainfully employed?

Many gyms contract PTs as self-employed workers, but with a parliamentary committee questioning the fairness of such contracts, could a change in the status quo be on the horizon?

By Kath Hudson | Published in Health Club Management 2018 issue 3
A rethink of the way gyms approach PT staffing could help ensure everyone is treated fairly / shutterstock
A rethink of the way gyms approach PT staffing could help ensure everyone is treated fairly / shutterstock

Last November, The Gym Group hit the headlines for the wrong reasons. Frank Field MP, chair of the Commons Work and Pensions Select Committee, placed the company’s PT contracts in the spotlight. He argued that restrictions placed on the company's "freelance independent" PTs in fact make them employees, who should be entitled to the "rights and protections that come with that status".

Self-employed PTs have helped low-cost operators to grow their businesses and engage more people in health and fitness. But while many PTs report that the self-employed set-up can work well for them, others disagree. With the government now showing an interest, it appears that the industry may have to look more closely at its current PT employment practices to ensure a fairer deal for all. But what does this entail?

Philip Landau,

Founder,

Landau Law

Philip Landau
Philip Landau

The defining feature of self-employment is independence. This means that a PT who is truly self-employed, and otherwise known as a “contractor”, should be completely free to accept or reject work – there should be no minimum number of sessions provided per week.

They should also be contracted to provide the service and nothing more. Employees have to fulfil any reasonable requests their employers make, such as cleaning the changing rooms, but a self-employed PT would not be expected to perform these kinds of tasks.

Having a workforce made up of self-employed contractors is much cheaper than workers. Self-employed people are responsible for making all their own tax and national insurance arrangements, do not have to be paid the minimum wage, or sick or holiday pay. The reason we’re seeing so many cases in the courts is that employers want to use the self-employed model to keep costs low while retaining high levels of control over their workforce. For example, many facilities require self-employed PTs to use a holiday booking system, accept a minimum number of client inductions a week and wear uniforms.

Going forward, gyms need to make a choice: either accept that their PTs are workers and provide the appropriate benefits, or relinquish some control and make them truly self-employed. Parliament and the courts are now wise to the need for stronger protection of workers’ rights, so employers must avoid taking advantage of the goodwill of self-employed workers.

"Employees have to fulfil any reasonable requests their employers make, such as cleaning the changing rooms, but a self-employed PT should not be expected to do the same"

Being self-employed provides the PT with the freedom to work when and for who they want / Photo: SHUTTERSTOCK
Being self-employed provides the PT with the freedom to work when and for who they want / Photo: SHUTTERSTOCK

Jon Nasta,

Director of Ecommerce and Marketing,

Xercise4Less

Jon Nasta
Jon Nasta

If the industry wants to push past the current 15 per cent penetration rate, as well as be taken seriously by the government, we have to look at our employment practices. PTs play one of the most important roles in our clubs: they spend the most time with the members and give them what they want in the form of the expert guidance and support required to achieve their goals.

With this in mind, last year we took the decision to flip the self-employed model and now employ every personal trainer at Xercise4Less. In the past we could have been accused of having our cake and eating it: we didn’t pay to train the PTs, but we still expected them to offer a good service and to pay us rent. This approach allowed us to grow our business rapidly, but cracks were appearing in the system.

Some of the customer feedback we received in 2016 was alarming, including some PTs taking money from clients and disappearing without giving them all of their sessions. Since bringing our PT service in-house, the worst feedback we get is that a member hasn’t been able to get their favourite instructor for their particular time slot – and this is something that can be easily managed.

Under our new system, all of our PTs are employed between 24 and 40 hours per week. We provide the flow of clients though our online PT platform and our app, so members can feel confident that they are buying from Xercise4Less, rather than the individual PT. However, our software also allows customers to book their favourite PT or change their PT as often as they like.

Making all our PTs employed hasn’t worked for all. The superstar PTs – those earning more than £100k – left and set up their own studios. But the majority of the others liked the change, as it meant a steady income, job security, the ability to get a mortgage, holiday pay and sick pay. An average PT earns around £30k, which in my opinion is a decent salary.

It has been more work than we expected and it has been expensive, but it was a necessary move that has helped us to take control of the entire customer journey and has set us up to move the business forward.

"In the past we could have been accused of having our cake and eating it: we didn’t pay to train the PTs, but we still expected them to offer a good service and to pay us rent"

As employees of Xercise4Less, PTs are able to earn a steady income and gain job security / Photo: SHUTTERSTOCK
As employees of Xercise4Less, PTs are able to earn a steady income and gain job security / Photo: SHUTTERSTOCK

John Treharne,

CEO,

The Gym Group

John Treharne
John Treharne

At the start of last year, The Gym Group identified that we needed to make some changes to our PT model. With that in mind, we began working on a more effective model, which is currently being trialled in a newly opened gym before being rolled out across the whole estate later this year.

When we began 10 years ago, PTs were not part of our original business model, but we wanted our members to have access to that service so we allowed PTs to operate out of our clubs – rent free and on a totally self-employed basis. We didn’t derive any financial benefit.

Now that we have grown the business to 129 gyms and more than 600,000 members, we have found that the arrangement we had in place doesn’t work well enough for us or for our customers. For this reason, and in order to ensure a quality, standardised service across the estate, we are trialling a new model that offers PTs employment on a part-time basis together with the payment of a small rent to The Gym Group for working with their independent clients outside of contracted hours.

This means that the PTs now benefit from the associated employment rights while having the flexibility to run their own business. Alternatively, PTs who prefer to be self-employed can stay as such, but they will have to pay a market rent to practice in our gyms. This model will allow our general managers to plan better and The Gym Group to offer a more consistent service to our members.

"Now that we have grown the business to 129 gyms and more than 600,000 members, we have found that the old PT arrangement doesn’t work well enough for us or for our customers"

The Gym Group is trialling a plan for PTs to stay self-employed or choose part-time employment / Photo: SHUTTERSTOCK
The Gym Group is trialling a plan for PTs to stay self-employed or choose part-time employment / Photo: SHUTTERSTOCK

Nikki Withers,

Self employed PT,

Skinny Jeans Fitness

Nikki Withers
Nikki Withers

Working as a PT, I’ve experienced a number of models, each with various advantages and disadvantages, however working as a salaried PT, with commission for each client was my least favourite option. Although I always knew that I would come home with a pay package, as well as benefit from sick pay, holiday pay and a pension, it was demotivating because the basic salary was around minimum wage. This felt offensive given the amount of training and qualifications I had invested in. Being paid £17 for a client when I was charged out at £47 also had a negative impact on my confidence.

Another model was to work for free at a gym and scout for PT clients among the members. As PTs, we were allowed complete freedom to book our clients and set prices, but it was very competitive and those who did best were great at sales, but not necessarily the most knowledgeable PTs. It was also daunting to have no pay whatsoever, as in some months like December the gym was very quiet.

I also worked at a gym where you paid rent up front for the month ahead and then had the freedom to set your own client rates. Again, this model has an element of risk, as you start out the month in the red. But it can work well for established PTs.

My favourite gym-based model was to be salaried for certain hours, and then generate my own PT work which could be done at any time, even within shifts. I paid the gym a commission for each client. As I ran classes I got to know members and there was also a photo wall to advertise the PTs, which was helpful for marketing.

Whatever model gyms choose to work with, it’s important to make sure their PTs are taking home enough money to compensate for their skills as well as the amount of time, energy and money they have nvested in getting themselves qualified. Paying minimum wage is not acceptable. Offering employee status and a salary gives an element of security and is good for new recruits. PTs also need to be respected and not given cleaning jobs on the gym floor, as this undermines their expert status in the eyes of potential clients.

"My favourite gym-based model was to be salaried for certain hours, and then generate my own PT work which could be done at any time, even within shifts"

Some gyms ask PTs to work for free in exchange for being able to sign up gyms members as private clients / shutterstock
Some gyms ask PTs to work for free in exchange for being able to sign up gyms members as private clients / shutterstock
Sign up here to get HCM's weekly ezine and every issue of HCM magazine free on digital.
Bodyism incorporates prehab into all of its classes
Bodyism incorporates prehab into all of its classes
Gymbox offers a 30-minute prehab class at two of its locations, designed to improve members’ flexibility
Gymbox offers a 30-minute prehab class at two of its locations, designed to improve members’ flexibility
Sports injury clinic Pure Sports uses the principles of prehab in its one-on-one strength and conditioning sessions
Sports injury clinic Pure Sports uses the principles of prehab in its one-on-one strength and conditioning sessions
Sports injury clinic Pure Sports uses the principles of prehab in its one-on-one strength and conditioning sessions
Sports injury clinic Pure Sports uses the principles of prehab in its one-on-one strength and conditioning sessions
Sports injury clinic Pure Sports uses the principles of prehab in its one-on-one strength and conditioning sessions
Sports injury clinic Pure Sports uses the principles of prehab in its one-on-one strength and conditioning sessions
https://www.leisureopportunities.co.uk/images/289940_307715.jpg
Is it time to rethink your PT employment contract? We ask the experts how these can be made fairer...
Philip Landau, Landau Law: founder Jon Nasta, Xercise4Less: director of ecommerce and marketing John Treharne, The Gym Group: CEO Nikki Withers, Self employed PT; Skinny Jeans Fitness,PT employment contracts, PT employment practices, self-employed workers
Latest News
The fitness sector’s pivot to active wellbeing is being discussed in a new weekly podcast, ...
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Basic-Fit has signed up to trial Wellhub across its recently expanded Spanish network, giving access ...
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Having redefined the model of public-private collaboration in Spain, Go Fit is now expanding into ...
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Planet Fitness has become the subject of a hate campaign by certain groups of consumers ...
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Featured supplier news: Panatta to showcase innovation at major fitness and bodybuilding events in 2024
Panatta will consolidate its global presence throughout 2024 by attending a host of major industry events around the globe.
Featured supplier news
Featured supplier news: Sibec EMEA to blend fitness with luxury at Fairmont Monte Carlo
Experience the pinnacle of fitness and luxury at the premier industry event, Sibec EMEA, set against the breathtaking backdrop of the Fairmont Monte Carlo this Autumn.
Company profiles
Company profile: GymNation
GymNation was created to provide a better kind of gym experience, one that builds strength ...
Company profiles
Company profile: Parkwood Leisure
As a family-owned business built on strong family values, Parkwood Leisure takes pride in offering ...
Supplier Showcase
Supplier showcase - Jon Williams
Catalogue Gallery
Click on a catalogue to view it online
Featured press releases
Greenwich Leisure Limited press release: Pioneering project boosts business in Basingstoke
A sports complex might not be your first thought when you’re looking for a peaceful and comfortable, drop-in workspace. However, that could soon change thanks to an innovative new project at Basingstoke Leisure Centre.
Featured press releases
The Health & Fitness Institute press release: The future of fitness education: The Health and Fitness Institute champions digital learning
The Health and Fitness Institute (THFI) is leading a revolutionary paradigm shift in fitness education by fully embracing digital learning.
Directory
Spa software
SpaBooker: Spa software
Lockers
Crown Sports Lockers: Lockers
Snowroom
TechnoAlpin SpA: Snowroom
Flooring
Total Vibration Solutions / TVS Sports Surfaces: Flooring
Cryotherapy
Art of Cryo: Cryotherapy
Salt therapy products
Himalayan Source: Salt therapy products
Property & Tenders
Loughton, IG10
Knight Frank
Property & Tenders
Grantham, Leicestershire
Belvoir Castle
Property & Tenders
Diary dates
22-24 Apr 2024
Galgorm Resort, York,
Diary dates
10-12 May 2024
China Import & Export Fair Complex, Guangzhou, China
Diary dates
23-24 May 2024
Large Hall of the Chamber of Commerce (Erbprinzenpalais), Wiesbaden, Germany
Diary dates
30 May - 02 Jun 2024
Rimini Exhibition Center, Rimini, Italy
Diary dates
08-08 Jun 2024
Worldwide, Various,
Diary dates
11-13 Jun 2024
Raffles City Convention Centre, Singapore, Singapore
Diary dates
12-13 Jun 2024
ExCeL London, London, United Kingdom
Diary dates
03-05 Sep 2024
IMPACT Exhibition Center, Bangkok, Thailand
Diary dates
19-19 Sep 2024
The Salil Hotel Riverside - Bangkok, Bangkok 10120, Thailand
Diary dates
01-04 Oct 2024
REVĪVŌ Wellness Resort Nusa Dua Bali, Kabupaten Badung, Indonesia
Diary dates
22-25 Oct 2024
Messe Stuttgart, Germany
Diary dates
24-24 Oct 2024
QEII Conference Centre, London, United Kingdom
Diary dates
04-07 Nov 2024
In person, St Andrews, United Kingdom
Diary dates
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