WITH OR WITHOUT CONTRACT I CAN’T LIVE ….. WOW OH OH OH OH A.S.B.L. COURT-CIRCUIT...

WITH OR WITHOUT CONTRACT I CAN’T LIVE …..WOW OH OH OH OH

A.S.B.L. COURT-CIRCUITLouvain-La-Neuve ( Belgique) – 12 mai 2015

Jean-Christophe LARDINOISBelgian famous entertainment lawyer

CONTRACT - PRINCIPLES

• The contract is the law between the parties • One of the parties can neither modify nor

breach a contract without valid reasons• A marriage contract should be concluded

only for the divorce / separation time• It is not allowed to contract for third parties• A shady contract becomes generally a

source of conflict• The last and most important reader of the

contract shall be the judge

LIVE PERFORMANCE CONTRACT

Format ? A brief standard contract ( memo deal

OK through e-mail communication) A rider for specific situation

Technical, hospitality, merchandising, security needs

Regardless of length, some important considerations should be covered by the contract signed by BOTH parties

LIVE PERFORMANCE CONTRACT

Identity of the parties Agent/ Manager – power of representation ?

Definition of the performance Date, place, time and length – set breaks

Payment/Compensation terms Agent fees ( the agent is the seller – to be

clarified) Flat amount and/or Percentage of the ticket sales

( “door price” – any deductions or gross receipts ?)

How (cash ) /when ( before or after the show ?) the remuneration will be paid + deposit ( money upfront) or not?

Contracts: What for?

Historique de t-heater

The program for today

The program for todayOperational management of a band in Belgium

– The “asbl” (or “vzw”) as a structure for a band– Copyright / Royalties– The “statut d’artiste” (or Kunstenaar statuut)

The program for todayTypology of the Belgian contracts

– Labour legislation for Belgian citizens working in Belgium

– Volunteering contracts• practice• Taxes

– “RPI” (or “KVR”)• practice• Taxes

– Employment contracts• practice• Taxes

The program for todayBelgian employment contracts for foreigners

– Labour legislation for foreigners working in Belgium• For EU citizens• For Non-EU citizens

– Famous enough?– Not famous enough?

– Available solutions:• Volunteering contracts• “RPI”• Employment contracts

The program for todayForeign employment contracts for foreigners in Belgium

- EU OR working for a foreign organisation- Social contributions(A1)- VAT- Local taxes- International agreements

Operational management of a band in Belgium

Operational management of a band in Belgium

The “asbl” (or “vzw”) as a structure for a bandNonprofitCheap set upSimplified management (if no VAT)EvolutionaryAllows invoicingVery limited liabilityMore flexible than a company (ltd., Inc., etc.)Allows the payment of workers

Operational management of a band in BelgiumCopyright / Royalties

SabamWhat is it?

Société Belge des Auteurs, Compositeurs et Editeurs.Collection, distribution, administration and management of

all copyrights in Belgium and other countries where reciprocity contracts have been concluded.

SABAM is a private company.

Operational management of a band in BelgiumThe “statut d’artiste”

Not a status (employee, worker, officer,…)Unemployment benefitFlat amountConditions of access

PeriodSalary (or days)function

Not mandatory

Typology of the belgian contracts:

belgians in Belgium

Typology of the belgian contracts

Stage/studio/set = workspaceobligation of establishing a work document obligation of insuring the person obligation of communication to unemployment bureau

Mandatory > 16 years old (< 16 years old: specific legislation – mostly forbidden)Legal limbo for amateur musicians

Labour legislation for belgian citizens in Belgium

Typology of the belgian contracts

3 types of work documents:

Volunteering contract“RPI” (or KVR)Employment contract(Freelance or company)

Labour legislation for belgian citizens in Belgium

Typology of the belgian contracts

What?Not a “volontariat” contract, but a “bénévolat” contractDocument stating that:

A personIs working as a volunteer

No salary, no expenses, no benefit in kindFor a clientOn a certain day

Labour legislation for belgian citizens in Belgium: Volunteering contract

Typology of the belgian contracts

For Whom?EveryoneUnemployed: needs an agreement from the unemployment office

With who?All clients

Which intermediary?None

Labour legislation for belgian citizens in Belgium: Volunteering contract

Typology of the belgian contracts

What?Flat fee system (not a salary)Per personLimited

artistic performances30 days/year7 consecutive days for the same clientMax. 122,24 eur/ dayMax. 2444,74 eur/year

Labour legislation for belgian citizens in Belgium: RPI or KVR

Typology of the belgian contracts

For Whom?Artists only

MusiciansDansersConductors

Left out:ManagerRoadieSound Engeneer

Labour legislation for belgian citizens in Belgium: RPI or KVR

Typology of the belgian contracts

With who?Companies (exept for CP 304)Non profit: asbl or vzw (sauf CP 304)Individuals

Need for an intermediary?NO. Meant to be as easily used as possibleIntermediary possible insurances.

Labour legislation for belgian citizens in Belgium: RPI or KVR

Typology of the belgian contracts

What?Employment contract:

Identified legal employer (should there be a problem)Full social security coverage (“statut d’artiste” prospective)Better legal protection

PaymentWorking conditions

Either directly with client (“secrétariat social”)Or through a Bureau Social pour les Artsites (BSA/SBK)

Labour legislation for belgian citizens in Belgium: Employment contracts

Typology of the belgian contracts

For Whom?Everyone:

Artists through a BSA/SBKTechnicians, roadies, managers, etc. through temporary work agencies

Except for self-employedIn the same activity sectorAs employee (ok as client)

Labour legislation for belgian citizens in Belgium: Employment contracts

Typology of the belgian contracts

With who?Company

Accounting: okInsurances: okEmployment contract through a BSA/SBK, client is not the legal employer less responsibility involved

Asbl/vzwIdem companyDifference in VAT between BSA/SBK and “secrétariat social”

IndividualsIdem asbl/vzw

Labour legislation for belgian citizens in Belgium: Employment contracts

Typology of the belgian contracts

Which intermediaries?BSA/SBK (official):

T-heaterMerveilleTentooRitmoLe Palais de l’Intérim (SMArtBe)

“Secrétariat social”:UCM, Acerta, SDWorx, Partena, etc.

Labour legislation for belgian citizens in Belgium: Employment contracts

Typology of the belgian contracts

TaxesSalary income tax (min. 11,11%, av. 15-35%)Expenses to be justified: tax controlRoyalties: 15% “précompte mobilier”Employer’s contributions: bruto x 1,78 (av)VAT on the total billing amount:

6% performing artists (musicians, dansers, …)21% others ( technicians, managers, roadies,…)0% intracommunautary (all)

Labour legislation for belgian citizens in Belgium: Employment contracts

Typology of the belgian contracts:

foreign citizens in Belgium

Belgian employment contracts for foreigners

For EU citizens• Free movement of workers• Idem belgian citizens (except for RPI/KVR): same rights and

duties• Social contributions paid in Belgium• Tax withholding: 18% (not to be paid again in country of

origin)• Repatriable social rights through U1 (formerly known as

E301)

Labour legislation for foreign citizens in Belgium:

Belgian employment contracts for foreigners

Labour legislation for foreigners in Belgium

For Non-EU citizensFamous Enough? Be our guest! (idem EU citizens)Not famous enough?

• Free movement of workers not relevant• Mandatory work permit (A or B)• Idem belgians (except RPI/KVR): same rights AND duties• Social contributions paid in Belgium• Tax withholding: 18% (depending on country of origin: not to be paid

again in country of origin)• Non-Repatriable social rights through U1 (formerly known as E301)

except for Switzerland

Labour legislation for foreign citizens in Belgium:

Belgian employment contracts for foreigners

Available solutions for artists (if all legal requirements are met):

Volunteering contracts: Okpractice: idem belgian citizensTaxes: Belgium: 0% - cfr. country of origin

RPI/KVR: ok in Belgium, not for country of originpractice: idem belgian citizensTaxes: Belgium 0% - cfr country of origin

Labour legislation for foreign citizens in Belgium:

Belgian employment contracts for foreigners

Available solutions for artists(if all legal requirements are met):

Employment contract:Practice:

Mandatory work permit for Non-EU citizensIdem Belgian citizens

Taxes:Tax withholding: 18% (depending on country of origin: not to be paid again in country of origin)Social contributions, VAT, insurances: idem belgian citizens

Labour legislation for foreign citizens in Belgium:

Belgian employment contracts for foreigners

• EU OR working for a foreign organisationCompany is EU based:

ok with A1 (social taxes to be paid in counrty of origin)Intracomm. VATTaxes to be paid in country of origin

Company is based outside of EU:Only for artistic shows (on fixed dates)With a “business trip” visa Only with countries with an agreement

Labour legislation for foreign citizens in Belgium:

Conclusion

Laws regarding the artistic work in Belgium are currently changing. Check again before doing anything.

Lots of areas of the artistic work laws are blurry. In doubt, please refer to a local contact.

Feel free to contact us

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t-heater BruggeSmedenstraat 52, 8000 BruggeTel: 050 44 20 49 Fax: 050 34 20 84 brugge@t-heater.be

t-heater GentRode Lijvekensstraat 28, 9000 GentTel: 09 264 29 60 Fax: 09 264 29 69 gent@t-heater.be

t-heater Sint-NiklaasParklaan 13 A, 9100 Sint-NiklaasTel: 03 760 15 53 Fax: 03 760 15 59sint-niklaas@t-heater.be

t-heater AntwerpenSint-Jacobsmarkt 66, 2000 AntwerpenTel: 03 202 89 25 Fax: 03 202 89 29antwerpen@t-heater.be

t-heater HasseltDemerstraat 103, 3500 HasseltTel: 011 26 09 40 Fax: 011 26 09 49 hasselt@t-heater.be

t-heater LuikBoulevard d’Avroy 36, 4000 Luik Tel: 04 220 57 30 Fax: 04 220 57 39 luik@t-heater.be

t-heater CharleroiBoulevard Tirou 20 RC3, 6000 CharleroiGSM: 0490 65 90 51 Fax : 071 204 819 charleroi@t-heater.be

t-heater BrusselAdolphe Maxlaan 40-42, 1000 BrusselTel: 02 600 12 00 Fax: 02 600 12 09 brussel@t-heater.be

t-heater LeuvenJan Cobbaertplein 1, 3000 LeuvenTel: 016 29 88 80 Fax: 016 29 88 89 leuven@t-heater.be

LIVE PERFORMANCE CONTRACT

Sound and production What the artist provides vs what the purchaser

provides Recording, reproduction, transmission and

photography Promo materials – Artist’s right to grant specific

permission - Video/sound capture of the performance ?

Right to sell merchandise on premises Many different scenarios : Who ? Any commission for

the venue ? ( 10-30 % of gross sales) Permits and taxes

To be covered by the purchaser

LIVE PERFORMANCE CONTRACT

Acts of God Events that protect both parties : weather /

illness Cancellation

Different scenarios – depending on the gig – if enough notice = neither party is penalized

Insurance and security Personal liability insurance and property

insurance are on the buyer responsibility .. To be clarified ( Performer’s own equipment)

Meals, transportation, lodging Depends on performance type and gig type Guest list, dressing rooms …

LIVE PERFORMANCE CONTRACT

Practical issues Time of signature Deadline for rider’s reception Method of payment ( VAT , social security

issues, …) Support talent Sponsorship advertisement