Â鶹ԼÅÄ

Previously, many on-air talent:

• were treated as genuine self-employed freelancers,
• received total remuneration as a fee, and
• managed their own paid leave, sick pay, etc.

As a worker:

• you are entitled to worker benefits,
• your remuneration will be part fee and part benefits, and
• your fee will be adjusted to account for the value of the benefits.

However, whether you are self-employed or a worker, the total value of your remuneration (fee plus benefits) should be the same.

Different employment statuses come with different benefits and to maintain parity between roles we must adjust the fee to account for these benefits. This is to avoid creating unfairness between people with different employment statuses and to ensure that everyone, no matter what their role or method of engagement, is remunerated fairly. Across our on-air talent population, people may be providing their services in different ways:

• as freelancers (who are responsible for their own benefits),
• people engaged via PSCs or other intermediaries (where the intermediary provides any benefits to the talent),
• as staff members (whose comparative freelancer fees are already adjusted downwards to account for employment benefits and costs of engagement), and
• as workers (who are entitled to some benefits from the Â鶹ԼÅÄ but fewer benefits than staff members).

Where you pay Class 1 Employee’s National Insurance Contributions, the law says your engager must provide the following worker benefits:

• Statutory Sick Pay*
• Statutory Maternity/Paternity/Adoption Pay*

The law also says that, as a worker, your engager must provide:

• Statutory paid holiday
• a Workplace Pension*

(* provided all other qualifying criteria are met)

Fees for your work are not payable if you are not able to work.

To qualify for Statutory Sick Pay (SSP), you must fall within the eligibility criteria set by the government:

• you must earn a minimum amount per week (see for the current minimum), and
• you must have been sick for 4 consecutive days (including weekends, bank holidays and non-working days).

The first three days you are absent from scheduled work are “waiting days” and no SSP payment is due for those days.

You are paid SSP at the prevailing rate set by the government for up to 28 weeks per year.

Qualifying earnings limits and also the benefits value are subject to annual review by the government so may be adjusted in the future.

For further guidance and qualifying rules visit .

You will qualify for Statutory Maternity, Paternity or Adoption Pay if you fall within the eligibility criteria set by the government. These include:

• having worked for the Â鶹ԼÅÄ continuously for at least a certain number of weeks;
• earning a minimum amount per week;

giving the correct notice and certain information to the Â鶹ԼÅÄ Statutory Maternity and Adoption Pay (for the primary adopter) are paid at the prevailing rate set by the government for up to 39 weeks.

• Statutory Paternity Pay is paid at the prevailing rate set by the government for up to 2 weeks.

Qualifying earnings limits and the benefits value are subject to annual review by the government so may be adjusted in the future.

For guidance and qualifying rules visit:

The Â鶹ԼÅÄ has NEST (National Employment Savings Trust) as its arrangement for its workplace pension.

If you are eligible, you will be enrolled into NEST unless you choose to opt out and there will be specific details in your contract.

Both you and the Â鶹ԼÅÄ will pay into the pension every month you are engaged by the Â鶹ԼÅÄ each at the prevailing rate set out in the NEST letter you will receive if you are eligible.

For guidance and qualifying rules, visit .

If you already have large pension savings and previously registered for either Fixed Protection or Enhanced Protection status with HMRC then you should be aware that joining a pension scheme with the Â鶹ԼÅÄ may cause you to lose the benefit of your Fixed or Enhanced Protection in the future. If you believe that this may apply to you, we would recommend that you seek independent financial advice as regards your pension benefits and tax position before you are enrolled in NEST.

How much paid holiday will I get?

Paid holiday is accrued at the rate of 12.07% for every day you work.

If you work full-time, you are entitled to a maximum of 28 days (or 5.6 weeks) statutory paid holiday a year (including bank holidays).

If you work part-time, paid holiday is calculated with reference to your working pattern.

Your holiday entitlement will be explicitly set out in your contract.

Pay in lieu of paid holiday:

We will only pay you in lieu of taking paid holiday if:

• you accrue part of a day which cannot be taken as holiday, or
• you have to work on a paid holiday day.

Example paid holiday calculation:

• You work 20 days
• You are entitled to 2.41 days leave (12.07% of 20 days)
• You will be paid for 22 days including 2 days paid holiday
• You will be paid 0.41 days in lieu of holiday that can’t be taken
• You will be paid at the adjusted rate

What if I get different rates for different days?

If you get paid different rates e.g. for filming days, travel days, voiceover days, etc. then the paid holiday days will be paid at the weighted average rate.

Example:

Can I do other work on my paid holiday days?

Generally, it is up to you what you do on your paid holiday days.

However, you should check the exact terms of your contract.

More information:

Visit 

The Â鶹ԼÅÄ has consulted and followed professional advice on commercial practice across all industries.

We take the self-employed freelancer fee and calculate what portion of it should be allocated to your benefits to arrive at the worker fee.

The adjustment is not based on the cost to the Â鶹ԼÅÄ. It is the value of the total remuneration to you i.e. fee plus benefits.

The benefits have been calculated (as a % of the worker fee) based on the actual average payments for each benefit across the Â鶹ԼÅÄ worker population. These percentages are not representative of actual payments that will be made to you if you take up the benefits but are used only for the purpose of fee adjustment. For information about your entitlement to payments see questions 3-6 above.

So, based on the averages, the value of your remuneration as a worker is comprised of the fee plus the following elements:

Therefore, to maintain the value and ensure consistency and fairness across the community of workers and other categories of employment, any self-employed fee is adjusted by 12% to give an equivalent worker fee.

Example:

Self-employed fee: £100.00

Adjustment: £12.00 (£100 x 12%)

Worker fee: £88.00 (£100 - £12)

The law says neither the engager nor the worker can waive or "contract out" of the statutory worker benefits.

The Â鶹ԼÅÄ is not able to pay a cash alternative to those who opt out of pension provision (for any tax related or other reasons). It is against the law for the Â鶹ԼÅÄ to 'induce' people who would otherwise be eligible for membership of a pension scheme to opt out. This would be the effect of offering a cash alternative.

Self-employed freelancers will be engaged and paid for in relation to output i.e. per programme, episode or series for example.

As a worker you will be engaged and paid for:

• the work days, and
• the paid holiday days

You will be paid for all these days at the adjusted fee rate and rates may vary for preparation days, travel days, record or TX days, and voiceover days – consistent with industry norms.

Three worked examples:

Example 1:

You work 40 weeks per year doing one radio show per week.  The work effort required for the one 2 hour show per week is equated as 1 whole day per week (this may vary depending upon the show/output and the producer will take this into account in establishing days and fees required for the engagement. It is not always the case that one show requires one whole day’s work or indeed can be made in less than 2 or 3 days when prep and travel is accounted for).

Your previous self-employed fee was £100.00 per week (total fee 4,000.00). 

As a worker:

• you are entitled to 4.8 weeks paid holiday (12.07% of 40 weeks),
• you will be contracted for the year and will work 40 weeks plus have 4.8 weeks paid holiday,
• you will be paid at the adjusted rate (£88.00 per week),
• your total remuneration will be:
  - fee of £3,942.40 (£88 x 44.8 weeks),
  - including £422.40 (£88 x 4.8 weeks) paid holiday, and
  - other worker benefits valued at £57.60,
• fees are subject to tax and NICs deductions,
• your usual rest weeks will be your paid holiday.

Example 2:

You are contracted for a fixed production period of 20 days to present a second factual series.

Your previous self-employed fee was £100 per day (total fee £2,000.00).

As a worker:

• you are entitled to 2.4 days paid leave (12.07% of 20 days),
• you will be contracted to work 20 days plus have 2 days paid holiday,
• you will be paid in lieu of the 0.41days paid holiday that can’t be taken,
• you will be paid at the adjusted daily rate (£88.00 per day), and
• your total remuneration will be:
  - fee of £1936.00 (£88 x 22 days),
  - including £176.00 (£88 x 2 days) paid holiday,
  - fee of £36.08 (£88 x 0.41 days) in lieu of paid holiday not taken, and
  - other worker benefits valued at £27.92,
• fees are subject to tax and NICs deductions,
• you will get down days as paid holiday.

Example 3:

You are contracted to present a twelve episode factual series. It is agreed that you spend one day preparing for each episode and one day filming each episode – a total of 24 days for the series.

Your previous self-employed fee was £100 per programme (total fee £1,200.00).

As a worker:

• you are entitled to 2.90 days paid leave (12.07% of 24 days),
• you will be contracted to work 24 days plus have 2 days paid holiday,
• you will be paid in lieu of the 0.90 days paid holiday that can’t be taken,
• you will be paid at adjusted day rates rather than a programme rate, for example, if the preparation day has half the value of a film day then you will be paid £58.67 per film day and £29.33 per preparation day (totalling £88.00 per programme),
• your leave rate will be the average: £58.67 x 12 + £29.33 x 12 / 24 = £44.00
• your total remuneration will be:
  - fee of £1,144.00 (£58.67 x 12 + £29.33 x 12 + £44.00 x 2),
  - including £88.00 paid holiday,
  - fee of £39.60 (£44 x 0.90 days) in lieu of paid holiday not taken, and
  - other worker benefits valued at £16.40,
• fees are subject to tax and NICs deductions,
• you will get down days as paid holiday.

The use of PSCs (personal service company) in the media industry is under review, in particular as IR35 rules rollout across the private sector from April 2021.

If you are a worker then the Your engagement with the Â鶹ԼÅÄ will be directly with you as an individual.

The Â鶹ԼÅÄ will no longer contract worker engagement via a PSC.

If you contract as an individual, then:

• legally the Â鶹ԼÅÄ is your engager,
• the Â鶹ԼÅÄ is responsible for providing your worker benefits,
• your remuneration will comprise part fee and part benefits, and
• the fee is adjusted to account for the value of the worker benefits.

If you contract via a PSC then:

• legally the PSC is your engager,
• the PSC is responsible for providing your worker benefits,
• your remuneration will be the fee paid to the PSC but no additional benefits provided directly by the Â鶹ԼÅÄ,
• the fee is NOT adjusted as the Â鶹ԼÅÄ is not providing any worker benefits, and the PSC can allocate a portion of the fee received from the Â鶹ԼÅÄ to providing your worker benefits under its legal obligations.

Whether you contract:

• as an individual worker and are employed for tax or
• via a PSC and "Off-payroll working in the Public Sector" / IR35 legislation applies,

then income tax and Class 1 Employee National Insurance Contributions will be deducted from the fee by the Â鶹ԼÅÄ and paid to HMRC on your behalf.

No. Employers' National Insurance Contributions are a cost to the Â鶹ԼÅÄ and born entirely by the Â鶹ԼÅÄ.

Contracting as an individual worker:

Where you are engaged as an individual worker for a particular role:

• you are not in business on your own account for the purposes of that contract,
• wages or payments are not within the scope of VAT, and
• it is not possible to charge VAT.

You may have other engagements that are self-employed and can charge VAT.

Contracting via a PSC:

Where you are contracting via a VAT registered PSC:

• the PSC is in business on its own account,
• the PSC is able to charge VAT on invoices providing they are the contracting party.

VAT is calculated on the gross amount before tax / NIC deductions.

For more information refer to .

You will be contracted on the Â鶹ԼÅÄ's Standard Terms and Conditions for on-air talent.

Any special terms relating to the specific engagement will be added to your contract.

If you are contracted as a worker, the leave entitlement and payments will be explicitly stated on the front of the contract along with the fee and payment dates. "Call Days" will also be defined on the contract as either:

• the specific dates and times that it is agreed that you will undertake the services or,
• for long term engagements where the specific dates and times are not yet known, your availability as agreed with the Â鶹ԼÅÄ.