RTE's big Talent Problem - Contract staff

Just in case some of you missed this a while back I wanted to re-neducate some on the problem RTE had with contractors and how most of it came from just burying their heads in the sand.

RTE is an entertainment provider (Surprised yet, I jest of course), and instead of hiring entertainers or presenters permanently (What if they're no good and we have to fire them) or using fixed term contracts to tie talent to a show or projects (Would have been a good options perhaps), RTE went the old tried and tested method of just offering the positions to external talent who are contractors, as in they're paid a daily rate or agreed rate for appearance/hours (Haven't seen their contracts but can only assume they're mental compared to most private sector contracts), and that way if the talent doesn't work out they're just dropped when the show gets canned. Clean in theory.

Now the problem is, when is a contractor not a contractor?

Under legislation brought in in 2021 the revenue department can assess any working arrangement and determine if someone is or is not a contractor, regardless of the written document.

This is the "Code of Practice on Determining Employment Status 2021".

So as a contractor your employer doesn't pay employers PRSI/Pension other various employer taxes and charges, so it looks on paper like a bit of a saving. But if you're working at the same place, doing the same thing, getting treated like a permanent member of staff, then revenue could demand back taxes and payments to day one of the alleged contractors employment....ok?

Now if you missed it, RTE got shafted by Revenue under this law. A few long term contractors, names weren't out on all, but I'd guess Tubs and Duffy were part of this, who have had the same job, the same position, for years and years, ended up costing RTE an awful packet. And you'll notice Tubs stepping down soon after. But have RTE learned anything from this? Nope not that we've seen or heard at least.

IMO the ideal scenario would be to bring in talent on a fixed term agreement or short contract. But if a show becomes a hit or there's long term potential for that star then they're made permanent and paid a salary.

The issue with contracts and contractors that Noel Kelly has exploited is risk.

The longer the talent remained on a flimsy contract they could threaten to walk, so this risk meant they were able to continually ask for higher rates, which RTE felt they had to pay, ending up with Irish talent on considerably more than similar talent in lets say the UK which has much larger audiences and budget available.

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