Freelancer’s Question: I have a niche creative specialism – monster making, special effects and creature creations – and have found it hard to find an agency with enough work or contacts to represent me. The agent I have found seems ideal from my face-to-face meeting, and looks a certain way of me getting more gigs as a special effects freelancer trading without a limited company. Although they have little experience in my area, they quoted me rates way above the level of pay I anticipated. While their quoted commission sounds a little steep, my big concern is that the agency insists that it doesn’t work with contracts and won’t put me on one. In other words, no paperwork or agreement about them representing me will be exchanged or even exist. Instead, the agent said everything would be agreed and carried out verbally.
When taking on a new talent/recruitment agent, is this paper-less approach recommended, or legally unadvisable? Does the absence of a contract pose a risk to me? In short, what are the drawbacks, or advantages, of using an agent that doesn’t ‘do’ paperwork?
Expert’s Answer: Well, for a start it's unlawful for them - the agency regulations require that terms be put in writing by an employment agency or employment business, to both worker and hirer. And clearly, if you are working as self-employed and without a company, you can't opt out of those regulations, even if you wanted to. Of course, it is possible that the regulations might not apply - that will depend on whether there is any end-client ‘control.’
Secondly, it's unprofessional - as I think you realise, otherwise you wouldn't have asked the question in the first place!
Thirdly, it's carries the risk of uncertainty - one of the points of putting it in writing is that it spells out the detail of what the parties have agreed, so that there is no room for uncertainty, at least on the core issues; everyone knows where they stand. That helps - often enormously - to help keep a relationship on track, and avoid disputes.
Fourthly, given the rates quoted, I wonder if it is in fact too good to be true. From what you say of your circumstances, it seems as though they don't in fact have any work to offer you - just promises - and they don't have experience in your field - which may explain why they are quoting rates higher than you had expected. I suspect a reality check is called for!
Why not tell them - politely - that if they come up with something specific, you'll of course seriously consider it; and at that point (if they do), consider putting your understanding of the proposed arrangement in writing with some basic terms yourself. Otherwise, you may be better off talking to professionals already operating in your field.
The expert was Roger Sinclair, consultant at Egos, a legal advisory for freelancers.
Dec 11, 2009
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