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These notes are a summary of two open meetings held over Zoom in January 2024 for directors and designers to discuss contracts and negotiation skills. On this occasion we are sharing only the introductory comments by the Equity Official present at the meeting.
What is a contract?
A contract is an agreement between two parties that one will do something for the other in return for 'consideration' (usually a fee). There must be clear offer and acceptance, and an intention on the part of both parties to enter into a binding agreement.
Contracts don’t have to be formal documents – a contract can be formed verbally, or through a series of WhatsApp messages or emails. But if anything goes wrong, a verbal contract may be difficult to prove which is why Equity always recommends that you have a contract in place before you start doing any work. In the event of a dispute, it’s much easier to point to something in writing.
We don’t recommend that you start work as a director or designer before you have signed a contract. If it is absolutely necessary to do so you can contact Equity for advice if you are a member.
Be aware:
Just because you haven't actually signed a contract does not mean it is not binding. If you've been issued with a contract and commence providing services on it without raising concerns about clauses you are not happy with then you are normally deemed to have accepted it. It can be difficult to argue about things you're not happy with further down the line – so always make sure that you record any points you believe are still subject to negotiation.
Just because you have signed a contract does not mean it's legal. Some contract terms breach legislation and even though the contract is signed by both parties some terms could be challenged later on.
What about deal memos?
We regularly see deal memos issued to all theatre workers, sometimes also referred to as Heads of Terms, or Letters of Intent. The purpose of these documents is to clarify the key points of a contract before it is actually issued – so the issuing of a deal memo is where you would normally negotiate over contractual elements such as your fee, your expenses, your copyright and so on. You need to check the language in any deal memo carefully to be sure if it is or is not binding – or, if it is actually a contract – and Equity can advise you if you’re in any doubt.
Knowing what contract you are working on
If you are working for a SOLT member or a UK Theatre member producer as a director or designer then you will be working on a contract that is underpinned by the collective agreements negotiated between Equity and those management associations, and the contract you are issued cannot worsen the terms of that agreement.
You won’t always know if this is the case or not because the collective agreements are not always referenced in the contracts you are sent to sign. But you can always ask this question – and you should – because where the minimum terms of these agreements are not met then we can intervene to get your offer improved.
These agreements are what are known as ‘minimum terms agreements’ – they are floors through which nobody must fall, not ceilings through which nobody must rise. They cover copyright clauses, your entitlement to expenses, your rights to payment in the event there is a failure to produce, payment if you are ill – all sorts – so do always ask if the wider terms and conditions of the Equity agreements are being adhered to.
If you’re not sure if the contract you’ve been offered by a SOLT or UK Theatre member is in line with those agreements then ask us.
Basic information to check for in your contract:
- Your name.
- The name of the company you are working for that has responsibility for paying you.
- The nature of the work you will be doing.
- The fee you have agreed plus how it will be paid to you.
- Key dates for the work.
- Copyright provisions.
- Expenses.
You can use the Equity fringe agreement in negotiations – along with our job descriptions, they are there to support you in getting the best deal. Just visit the ‘Resources for Directors and Designers’ section of the Equity website.
Good practice in negotiations
It can be tricky to find the time to fit this in but a key factor in the outcome of your negotiations is the preparation work you do before you even start: getting all your arguments in place for why the fee should be higher based on your skillset, your experience, and the central contribution your work makes to the production.
Create a check list of questions you want to ask about the job and about the expectations the producer has so you know what you’re signing up for and there aren’t any nasty surprises once the contract has already started.
Think in advance about what you’re prepared to compromise on and what you’re not – you can waste hours and hours in conversations about something that is non-negotiable for you if you haven’t decided in advance what areas you are prepared to compromise on, and what you’re not. If you end up walking away from something because it isn’t possible to agree the terms you’re offered, it’s better to do that at the earliest possible point because it takes up less of your time.
Quantify your work. Don’t assume a level of knowledge about your process and the time it takes on the part of the person looking to engage your services – your prep time will be different to the last director they worked with, your research time will be different to the last designer they worked with. If you clearly detail what is involved for your labour and your time, you are more likely to get movement on the money you’ve been offered.
Take your time. If you are able to do so, taking some time to think about how best to respond and what further evidence you might need, or what additional points you might want to make can be really important.
Keep everything in writing: Try and resist undertaking contract negotiations over the phone – or if that is unavoidable, make sure you’re writing clear notes and send a summary after the conversation to check your understanding. It is much easier to keep track of everything when it’s written down and this also helps you avoid ambiguity later on.
Make sure the contract reflects the agreement you believe you have reached before you sign it – and if it doesn’t, don’t be afraid to push back on it.
Remember that if you are a member of Equity you – or your agent on your behalf – can contact us for advice on your contracts.