The Stage

Warning that DTI rule change could make agents criminals

Published Tuesday 9 March 2004 at 15:30 by Sally Bramley

Former president of the Agents’ Association Bob James warned that new regulations governing the profession which come into force next month will leave many of his members at risk of a criminal record and thousands of pounds worth of fines if they unwittingly break the rules.

James, who has been involved in consultations with the Department for Trade and Industry about the legislation, told The Stage that agents face a host of new requirements governing health and safety in venues, paying interest on any earning held in a client account for more than ten days and completing an annual audit, no matter how small their business turnover.

Said James: “These regulations make it harder to earn a living and more difficult to put bookings into operation. It also means an awful lot of agents will be unknowingly breaking the law and these are criminal offences. You could end up with a £10,000 fine on each count.

“There is going to be an awful lot more paperwork and expense. It is extremely onerous.”

Under the revised Conduct for Employment Agencies and Employment Businesses Regulations, agents cannot charge performers fees before finding them work, although they can take a percentage on earnings if the client is forewarned before they sign a contract.

Up-front fees may still be charged when the only work-finding service provided by the agency consists of a publication, or where fees are imposed only for the estimated cost of producing and circulating the publication.

Agents who hold acts’ earnings in specific bank accounts must put all artist payments into the account by the end of the second working day. The money must then be paid out to the act no later than ten days after it was received. Otherwise the agent must pay any interest accrued on the cash.

The rules, which cover all types of employment businesses, also include a clause for agents to “make all such enquiries, as are reasonably practicable” to check the level of health and safety for performers.

“It is difficult for an agent to go into every venue and say ‘I want to see your insurance’,” said James. “When you book a cabaret act into a hotel for a function then you expect them to have health and safety in order. If you don’t check, you are still responsible and it could come back on you.”

Equity, which has also been involved in consultations with the DTI, said it believed the regulations struck a reasonable balance between protection for performers and obligations on agents.

General secretary Ian McGarry said: “The new regulations are an improvement on what went before, especially in relation to the greater protection of and accountability for monies held in client accounts -. a measure which should help prevent some of the failures under the previous regulations.

“We have welcomed the opportunity of working with the DTI and the Department for Culture, Media and Sport and are still working with them and with Bectu and a number of agents on developing self-regulation to cover areas not included in the new regulations.”