Your calendar is full. You teach, answer messages, build schedules and clean the studio, and you have just turned down a new class because you could not be in two places at once. Sound familiar? Then you might be ready for your first instructor.
But the first hire is also where many studio owners stumble. Should she be an employee or a freelancer? What does it actually cost? And which paperwork needs to be in order before she steps onto the mat for the first time?
Here is a practical walk-through, focused on the rules that apply where you are, the hidden costs and how to find the right person.
When are you ready for your first instructor?
There is no single right moment, but three signs come up again and again:
- Demand has outgrown you. You have waiting lists, or you are turning down classes and time slots because you physically cannot fit in any more.
- You are spending your time in the wrong place. If you teach 25 hours a week, you have no time left to run the business: marketing, finances and growth.
- The finances can carry it. You have a stable enough customer base to cover the wage, even in a quiet month.
Another instructor is not only a cost: it is the only way your studio can grow beyond your own two hands.
Employee or freelancer? The most important decision
The first choice is also the biggest: should the instructor be an employee on your payroll or work as a self-employed contractor (freelancer)? It shapes tax, insurance, the contract and your real cost.
And here is the trap: you do not get to decide the category yourself. The tax authorities do, based on how the working relationship actually functions, not on what it says on the invoice.
The more of these points that apply, the more it looks like an employment relationship (an employee):
- You decide the time and place of the classes
- You give instructions on how the work is done
- The instructor uses your premises and your equipment
- She teaches mainly for you
- She receives a fixed payment per class with no financial risk of her own
If you pay a contractor fee to someone who is really an employee, it can become an expensive mistake if the case is ever reviewed by the tax authorities. If you are in any doubt, spend an hour with an accountant before you decide: it is money well spent.
Quick check: employee or contractor?
Do you set the time? · Do you give instructions? · Does the instructor use your premises and equipment? · Does she teach mostly for you? · Fixed payment per class with no risk of her own?
More "yes" answers = probably an employee, not a contractor. The final judgement rests with your local tax authorities or your accountant.
The legal side: contract, tax, payroll and holiday pay
If you choose to employ someone, some obligations come with it. They are manageable, but they need to be in place from day one.
Written employment contract
In most places an employee is entitled to a written statement of the main terms of their employment, and many jurisdictions require you to provide it within a set number of days of the start date. Put the essentials in writing early: hours, pay, place of work, notice periods and holiday. Check what your local rules require, as the exact timing and content differ from country to country.
Tax and payroll
As an employer you normally deduct income tax and any statutory contributions from the wage and report them to the relevant authorities through your payroll. Depending on where you operate, you may also owe employer contributions such as pension or social security on top of the wage. The exact rates and reporting deadlines depend on your local rules, so set up payroll correctly from the start, or use a payroll service to handle it for you.
Holiday pay
In many countries an hourly-paid instructor earns holiday pay on top of their wage, often calculated as a percentage of what they earn. Whatever the rate is where you are, it is money you need to set aside as you go, not something that appears for free in the summer.
Employer's liability insurance: from your very first employee
This is the point most people forget: in most countries, the moment you have a single employee you are required to take out statutory workplace-injury or employer's liability insurance. It applies regardless of hours, pay level, and whether the job is permanent or temporary.
If the insurance is missing and an injury happens, you can end up personally liable for the compensation, on top of a possible fine. It is cheap cover and an easy box to tick. Sort it out before your instructor teaches their first class.
What does an instructor cost? The hidden bill
The wage you agree on is not the full cost. Pay per class varies a lot depending on experience, location and the length of the class, so check what is normal in your area and for your type of studio.
On top of the agreed wage comes the employer's share:
Example: what does one class really cost you?
Agreed pay per class: your base rate (call it 100)
+ Holiday pay: a percentage on top, set by your local rules
+ Employer contributions and insurance: typically a small amount per class for a part-time instructor
≈ Real cost: around 110-120 for every 100 of visible wage, often 10-20% more than the figure you first agreed.
These figures are only an example. Ask your accountant to work out the numbers for your specific situation.
Finding the right person: the advert, the trial class and the audition
A certificate on paper says nothing about how an instructor is in the room. So always let the candidate teach a real class, or a short taster session, for your members before you decide.
Watch for:
- Cueing and safety. Does she give clear instructions and correct people in a reassuring way?
- Energy and connection. Do the participants feel seen? Remember: people stay at a studio because of the instructor.
- Your style. Does her tone fit your studio's brand and community?
It is worth asking a few of your regular members what they thought afterwards. They can tell you better than any CV whether the chemistry is there.
How Class Booking helps as your team grows
Going from "just me" to a small team changes your everyday. With Class Booking every instructor gets their own access:
- Their own overview. The instructor sees only their own classes, participant lists and attendance, so you no longer have to send lists back and forth.
- Shift swaps and cancellations. If an instructor falls ill, classes can be swapped or handed back in the system, and the cover flow is handled for you.
- Limited access. You control what each person can see, rather than giving everyone full admin rights.
- Easy figures for payroll. Get an overview of classes taught per instructor, so the numbers for your payroll service or accountant are right at hand.
Try Class Booking free for 14 days →
This article was last updated on 28 April 2026.