Negotiation of Personal Service Contracts

Abstract

THIS PAPER will discuss only contracts for the employment of talent, viz., -actors, writers, directors and producers, since all other employment is covered by collective bargaining contracts. Before considering any individual contract however, it is essential to read the particular guild contract relating thereto.' When the contract is for an actor to appear in one picture for a salary of less than $25,000, the Screen Actors Guild enforces the use of a printed form of contract which it has approved and which cannot be modified except for the benefit of the actor. This contract is very favorable to the actor, so this is no hardship to one negotiating an employment agreement in behalf of an actor. It is to be noted that the $25,000 relates to cash compensation paid during production and if the actor is to receive cash plus a deferment or cash plus a percentage of receipts or net profits, in computing whether the compensation is $25,000, only the cash may be considered. For example, if an actor is to receive $20,000 in cash, $30,000 as deferred compensation to be paid after the cash negative cost of the picture is recovered, and 10% of the net profits, under the interpretation of the Screen Actors Guild, this is still a contract for less than $25,000. In using the Screen Actors Guild minimum contract form about the only important matter to negotiate will be the screen and advertising credit to be afforded the actor.