Member benefits - secured fees

Unlike many member benefits, working with secured fees is one of those invisible protections of which most members are thankfully unaware. I say "thankfully" because in the best of circumstances, it, like a high-wire safety net, remains unused. However, just like a safety net, you would not want to be without that protection if you do need it.

All member benefits and protections have their roots in Council policy. In this case, the applicable policy is End-2: Working Under Contract, which states:

Members will work with secure contracts in place, ensuring…appropriate and consistent remuneration [and] a guarantee on a portion of the fees payable…

In practice, this means that either the engager must put down a deposit on a portion of the fees (typically two weeks' worth of fees, taxes and benefits) or must prepay the artists. In the case of a tour, the per diems for the same period are also require a bond.

For established theatres, this security is most often posted in the form of an irrevocable letter of credit, although some theatres post cash bonds with the office. Cash bonds are kept separate from all other Equity accounts, and are not used for any purpose other than as security. Also, interest paid on cash bonds is credited to the engager, and does not go into Equity's general revenues. In all cases, Equity has the unilateral right to withdraw funds from the security deposit if required.

If you have served as a deputy on a show, you will recall having signed a "release" form at the end of the contract. Receipt of this form is critical, as it advises our staff that all the contractual financial obligations have been satisfied by the theatre, and Equity may now release the security back to the engager.

If you are the deputy, it is really appreciated, by both the theatre and Equity staff, when you get that form back to the ofice promptly at the end of a contract. If you are contacted by the deputy on your show and asked to confirm full payment so they can send in the release, please get back to them ASAP. Theatres are understandably anxious to know that their security is unencumbered, and Equity does not want to tie up an engager's money any longer than absolutely necessary. If you happen to have misplaced the form, please download one here – send it in as soon as the production has closed and  you can confirm that there are no outstanding fees.

Does Equity ever have to pay members out of the security deposit? In a word: "yes", several times per year. I'll pull together some details for a future post.