The Stage

Government confirms plan to ban up-front fees for models and extras

Published Thursday 12 November 2009 at 09:10 by Matthew Hemley

The government has confirmed it will introduce new legislation aimed at cracking down on rogue agents charging up-front fees, after measures introduced last year proved to be ineffective.

As revealed by The Stage in October, the new legislation - due to be implemented in October next year - will ban agencies, which are currently permitted to charge a fee for including clients’ details in a publication or directory - from taking any form of up-front fee from models, background artists, extras and walk-ons.

For actors, production staff and other entertainers, companies will still be able to charge fees for including them in a publication, however a seven-day cooling off period - introduced last year and designed to allow potential clients time to change their mind before committing any money - will be extended to 30 days.

The new measures follow a consultation in March this year, which was held following concerns the introduction of the seven-day cooling off period was failing and not deterring rogue agencies from charging fees.

Two proposals were included as part of the consultation - a complete ban, or tightening up of existing legislation.

Reporting back this week, the government said it had tried to “strike a balance between tackling the main areas of abuse of up-front fees” with those of the “legitimate directories for which up-front fees are an integral part of their business model”.

“We have therefore concluded that the best approach will be to ban up-front fees for photographic and fashion models, background artists, extras and walk-ons, but continue to allow them in respect of recruitment of actors, production staff and other entertainers,” it said.

For the groups that still face being charged an up-front fee, the government has said it will tighten legislation to make sure employment agencies notify new clients of the 30-day cooling off period, and their right to cancel in that time.

Agencies will also have to show performers a draft of the information to be included in a publication and provide a refund if no publication is produced within 60 days.

Business minister Pat McFadden said “Unfortunately there are some rogue agencies that prey on models and entertainers who have stars in their eyes. Last year we introduced a cooling off period for up front fees, but we are still receiving some reports that people are being exploited. So now we are going even further by banning them outright. This will tackle the unscrupulous agents that represent the less appealing face of the modelling and entertainment industry.”

Employment Agency Standards Inspectorate (EAS) will enforce the new regulations. Currently, EAS can issue warning letters or bring a prosecution through the courts.

However, as part of its response, the government acknowledged concerns EAS does not have enough powers, and added that it could be given more, such as being able to impose fines, under the Regulatory Enforcement and Sanctions Act 2003.

In its response to the consultation, the government also said it had received feedback from some stakeholders that there should be a licensing regime introduced for recruitment companies operating in the UK.

“Our view is that although licensing is justified in certain circumstances, it is not appropriate for the recruitment sector as a whole, on the ground that it would impose an unnecessary regulatory burden on all labour providers.”

Instead, the government said it would “prioritise effective enforcement of existing employment law protections”, including a new helpline for vulnerable workers.

In its response, the government also said it acknowledged that banning up-front fees for models and walk-ons would impose costs on the modelling and entertainment sector, as agencies will have to publish a portfolio for their worker, but will be unable to recover the cost of that publication.

It said this could cost the sector £2 million a year.