Audiovisual Production Contracts: A Comprehensive Guide

Posted on Oct 13, 2024 in Economy

Working Hours in Audiovisual Production

Working Day: The working day is the time employees spend working. In Spain, this is stipulated between 40 and 50 hours per week. There must be at least 12 hours between the end of one day and the beginning of the next. Workers are entitled to an uninterrupted rest period of 36 hours, generally including Saturday afternoon and all of Sunday. Whenever possible, depending on production needs, workers are entitled to a 48-hour weekly rest.

Artistic and Technical Staff: Artistic staff typically work between 8 and 9 pm, while technical staff work 10 to 12 hours. These hours can vary during shooting, recordings, pre-production, and post-production, requiring more flexibility.

Characteristics of Working Hours

  1. Establishment: Establishing the working day is the exclusive responsibility of the company, which will agree upon the initial work plan and any subsequent needs.
  2. Flexibility: Each workday can be established regardless of hours or days within a 24-hour period and can be part-time or continuous, respecting minimum rest times.
  3. Advance Notice: Except in cases of force majeure, the working day schedule will be communicated at least 12 hours in advance.
  4. Maximum Hours: In audiovisual production, the maximum actual working hours are 53 hours per week on average, exceeding the standard by 3 hours for rest and meals.

Breaks and Rest Periods

  • Extended Hours: For shifts equal to or less than 7 hours, workers are entitled to a 15-minute rest period, not considered actual working time. If this coincides with lunch or dinner, the company must provide a meal. If the company provides a meal, the 15-minute break is considered distributed throughout the workday and counts as working time. The same applies if the workday exceeds 7 hours.
  • Part-Time: If the company establishes a lunch/dinner break of less than 2 hours, it is not considered working time. If less than 2 hours but the company provides lunch/dinner, it is considered working time. If lunch/dinner is outside the municipality, the company must cover the worker’s expenses.

Saturday Work: Work on Saturdays will only be in the mornings.

Overtime: Any time exceeding the agreed hours is considered overtime, which the worker can accept or refuse, except in cases of force majeure. Overtime can be compensated with time off (65 minutes for each extra hour) or paid at a higher rate (80% more on weekdays, 140% on weekends, including a day off).

Travel: If recording is outside the municipality, the production company can provide transportation or pay for travel expenses.

Night Work (22:00-06:00): Night work can only be assigned under specific circumstances: necessary night work, night shooting, production contingencies, or by agreement.

Audiovisual Convention

Agreements are the result of negotiations and are freely adopted by the parties.

Key Aspects

  1. Contract Duration
  2. Displacement
  3. Dubbing and Film Promotion
  4. Contract Rescission

Contract Rescission: The producer can rescind the contract without compensation under specific circumstances, including the actor’s inability to perform, unprofessional behavior, substance abuse, unjustified lack of punctuality, or failure to follow instructions. The producer can also claim compensation for expenses incurred due to these reasons.

Leasing Contract in Audiovisual Production

A leasing contract includes a purchase option after the lease term for a residual value.

Contract Duration

The minimum duration is two years for movable property and ten years for immovable property.

Leasing Contract Details

The lessee pays installments covering the property price, financial costs, and VAT. The breakdown is in an annex. After paying all installments, the lessee can: 1. Buy it for a fixed amount; 2. Extend the contract; 3. Return it.

Benefits of Leasing

  1. Fully deductible fees for corporate tax.
  2. VAT levied as installments are paid.
  3. Cash payment discounts.
  4. 100% financing.
  5. No initial payment and faster transaction.

Leasing Alternatives

Operational Leasing: Focuses on usage, not ownership.

Leveraged Leasing: Involves an additional financier.

Disadvantages of Leasing

  1. Annual submission of financial statements.
  2. Penalties for non-compliance.
  3. Irrevocable contract.
  4. Higher cost than other financing options.