Visual Effects Company Closure Exit Form

Since this is happening more frequently I thought it best to create a form for visual effects workers and reporters.

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Visual Effects Company Closure Exit Form VFX-SOL

Check all that apply.


It was announced on ____________  that  ______________________________ , a visual effects company, located in _________________________, has closed it's doors due to:

__ Subsidies
__ Bad business practices (note: requires Subsidies to be checked as well)
__ Completion of project

The vfx workers had:
__ Finished the project
__ Done above and beyond their jobs
__ Sacrificed their personal lives
__ Shown loyalty to the company
__ Solved immense technical problems
__ Gotten the company out of a jam
__ Put in unpaid hours
__ Put in unpaid OverTime
__ Put in a lot of OverTime

At the end of the project they had expected:
__ Payment
__ Pat on the back
__ Thank you
__ Wrap Party

Instead they were given:
__ Pink slips

but did not get:
__ Paid

During the project they received:
__ Missed payrolls
__ Broken promises
__ No communication with management

The owners repeatedly said:
__ You will be paid soon
__ There was a glitch in accounting
__ The bank messed up
__ The client will be wiring money soon
__ Once we complete this next sequence
__ Once we complete this next milestone
__ Don't worry, you'll be taken care of

During this time workers did not want to:
__ Do anything
__ Say anything
__ Unite together

because:
__ Fear of blacklisting
__ Didn't want to rock the boat
__ Fear of losing work (even if it wasn't paid work)
__ Prided themselves on being individuals
__ They had faith in the managers/owners
__ They had faith in the company

So when the company closed the workers had not been paid in:
____ Years
____ Months
____ Weeks

because:
__ They loved vfx
__ They had faith in the managers/owners
__ They had faith in the company
__ They had thought their sacrifices would be rewarded
__ Didn't want to rock the boat
__ Feared being blacklisted

In total ____ workers are owed over _____________ and some as much as ____________

In addition the company owed them:
__ Vacation
__ Health Care
__ Pension
__ Retirement plan
__ Expenses

They expect to see ___ % of their actual money owed in:
__ Weeks
__ Months
__ Years
__ (Default) When hell freezes over

To do so they expect to:
__ Complain to each other
__ Put up a Facebook Page
__ Write a bad review
__ Contact legal help
__ Complain publicly

They do not expect to:
__ Complain publicly
__ Put up a Facebook Page
__ Write a bad review, even anonymously
__ Contact legal help

because:
__ Fear of blacklisting
__ Don't want to rock the boat
__ Love of vfx

In the future the workers will:
__ Do the same thing

because:
__ This was a unique event.
__ Things will improve without any effort on their part.

The workers learned:
__ This is just the way it is
__ They should change careers

Things they still won't do:
__ Sign a union rep card anonymously
__ Support Adapt
__ Do something

because:
__ Fear of blacklisting
__ Don't want to rock the boat
__ Love of vfx

Meanwhile others think:
__ Everything is fine
__ That will never happen to them
__ Subsidies aren't so bad
__ Moving frequently isn't so bad. Their spouse and children love it.
__ If they ignore the issues, the issues will go away.
__ If they're very quiet they won't lose their job or have to move
__ They'll wait for someone else to implement a perfect global solution
__ More overtime for no pay. Where do I sign up?
__ They'd rather be on a sinking ship that to help try to fix it
__ Silence is golden.
__ Watch out, you could be blacklisted
__ Watch out, don't rock the boat
__ It's fun to live in fear of the company you work for.
__ They love VFX. They might as well because it's becoming less of a profession all the time.

Visual Effects Professionals United

Visual Effects Professionals United

[Update: 4-12-2013 I've adjusted the page a bit.

The VES has a project in process and one of those has to do with the workforce. I've been tasked with trying to gather feedback from professionals about their wants and needs. Since I had already written and posted this I thought it was right in line.

I'm hoping to also do a survey in the next week.
Please take this survey regarding your working conditions
(I plan to wrap the survey during 1st week of May so be sure to fill it out now)

[Survey has been done and the results are here: Visual Effects Working Conditions Survey ]

[I've included some comments at the end of this post from some of the survey results already.]

PLEASE contribute your thoughts. People keep asking what's supposed to happen next and why isn't someone doing something. Now it's your turn to do something. Submit your ideas and thoughts.

Thanks.]


As individuals in the visual effects industry each one of us has very little control over our work experience. The choice is to talk to management and hope they will be willing to make changes or to quit and hopefully find another company that has similar views of work and life as you do.

Most companies are driven by profits and they’re driven even more these days by squeezing workers and vendors as much as possible. The visual effects companies are put in difficult situations by the studios, which in turn puts pressure on the workers to accept less than ideal working conditions.

Even when management may be trying to balance profits and worker experience, new management or an adjustment of business conditions may change that for the worse.

At this point there are visual effects professionals around the world doing great work, each of us connected by the work that we do and the love of what we do. We’re a global community. You can certainly extend that out to cover as much as you consider. (film, TV, commercials, animation, video games, motion graphics, etc)

Goal
What we need to do is unite in some form so we can work together to help stabilize and improve the visual effects industry.

One aspect of that is to come up with a work experience document. This would include working conditions and a code of conduct for workers and companies. This would make sure there is a minimum working base for all visual effects workers, including yourself, around the world. This would help to make sure no professionals have to deal with poor working conditions. This would mean if you have to go work half way around the world you won’t find yourself working under poor working conditions.

Many companies may already be doing most of these things and others may be doing very few of them.

Here’s my proposal
Consider what you would think is important at work that could be used as a basis of employment around the world. Post your notes in the comments or form groups with others from work or through the internet.

Let’s compile the list and have a group refine it and put it into written form that the majority agree on.

So what’s the purpose of this?

This would provide a goal or target of what we as professionals would like to achieve when all the current possible solutions are explored and implemented.

This document could be starting point and could reduce the research and exploration time required by some of the potential groups.

If / when there is a visual effects trade association then this could be used as a guideline for what we would expect from the companies and studios involved.

If / when there are visual effects unions, this could be used as a guideline for what we would expect from the union. Existing unions could review and see how it fits into their current structure. These are items of interest to visual effects professionals.

This would be a guide for any visual effects company about what they should be providing if they wish to retain the best workers.

Companies could volunteer to sign on to the guideline if they adhere to it. These companies would be posted on a list on the internet so workers would know which companies support this measure. Those who support it would likely get more higher level work applicants. And they would be monitored in case the company did not follow through on the guidelines.

This would provide a guideline for critiquing or rating a visual effects company on places like thevfxwatchers.com.  There's also glassdoor

Workers at a given company could consider going as a united group to their employer and discussing the differences and what could be done to accomplish the list.

You as an individual could discuss with management or include in your deal memo all or part of the guideline.  A deal memo is a written employment agreement that covers your job title, rate, start, end dates and other details. VFX Deal Memo


Global nature
I understand that some countries or areas may not require all of these things but I think we should come up with minimums that can and should be implemented world wide. Even though a country may not have any laws saying the exits must be clearly marked and doors unlocked, I think we should include such specifics. Otherwise if it simply boils down to whatever local labor and safety laws dictate then none of this means anything. Around the world those laws are being broken already.

Simply having a document that  only says follow local labor and safety laws does not accomplish anything.

Examples of some of the items that might be include (these are made up numbers. You’ll want to come up with the values)

Working conditions
Meet or exceed local health and safety laws. (This should not be required but of course companies don’t all comply even when required to. There are still fires and other tragedies around the world that happen due to companies skimping on safety or trying to save $1.)

Temperatures to be at nominal room temps in the work area. (72-80 degrees) (Once again the type of thing you may not consider but even here on the west coast at a large vfx company they have been working at 85 or hotter. Some areas are much worse.)

Ventilation – Reasonable ventilation along with heating and cooling to maintain a room temperature.

Sound – No loud noises. No workers playing any audio above x db.

Drinking water within a reasonable distance (100 feet)

Working restrooms

Ergo working space – specs of basic chair, monitor, etc. To avoid carpal tunnel and other physical ailments.

No smoke or fumes in the workplace.

Meet or exceed local labor laws. (This should not be required but of course companies don’t all comply even what they are required to. Many companies misclassify or avoid existing labor laws.)

Adhere to a timely payment in full on a weekly basis.

Correct classification of workers. (ie. not classifying workers in a way that causes them to lose government protections, to avoid overtime payments and taxes. Independent contractors, ‘staff’, ‘flat’,‘salaried’,’managers’,technicians, etc)

No unpaid interns doing production work.

No unpaid students doing production work.

Food break every 6 hours for ½ hr minimum.

15 minute break every 3 hours.

No paying to work, including paying for training.

Clear deal memo for all workers specifying pay, hours, start and end dates, etc.

No withholding of training fees, moving fees, etc.

Work shall be non-abusive (we are professionals)
No screaming
No bullying
No sexual harassment
No beatings

All hours worked (approved or requested) shall be paid by the company.

Overtime
Overtime will be paid at x rate above 8 hours, y rate above 12 hours.
(Yes, I understand that not all countries have such laws or rates in place. Let’s either try to get in some reasonable minimums or at least make this section variable with different grade levels. Grade A for the company if it complies. B if it only does for x. F if it provides no compensation for overtime.)

Ability to turn down overtime work without dismissal or retribution.

 x hours notice before being assign overtime.

Cap of x hours in a day, y hours in a week.

Turnaround time
Minimum of 12 hours from time of checking out before starting to work again.

Health care
If the local government does not supply health care coverage then the company will provide x minimum.


We can't put in things like permanent jobs.
Lets focus on the real issues.
For now let's not deal with wages themselves, let's focus on the working experience.


Please feel free to add in the comments or as I stated groups in different areas could start developing a defined list of what they feel is important. This could be an item to discuss at one of the vfx townhall meetings in the future. If a group wants to take this and run with it so much the better.

What are the things that are important to you and that all vfx professionals should have in their workplace?

What are the things you feel are missing from your workplace?

What are your hot button issues?
Not being paid OT?
Too much OT?
Not having demo material?
Being misclassified?
Forced to travel?
etc.



and write up specifics in the comments below (click on Comments link if you don't see a list of comments). You can do so anonymously.  I'm hoping to get survey results and feedback by May 1 or soon there after.

If you have ideas beyond just the workers that applies to the whole industry then consider posting comments on the  What's The Solution? post

Here's the original post about this concept:
Global VFX Workers

References
Reference for what might be included beyond what might be obvious would be to review local labor laws to see what they mandate. California Labor Laws example  World wide list of labor laws

The various film unions contracts provide good guidelines for what should be included. Many non-union productions and writers still adhere to union guidelines even when they themselves are not.
Animation Guild contracts  Film union contracts

The various organizations that deal with worker rights world wide provide a good reference.

FLA - Fair Labor Association

FLA Code of Conduct

FLA Complete code and benchmarks

Frame of reference:

FLA is in use by HP and Apple in China and other locations.

Here's their HOURS OF WORK section:
"Employers shall not require workers to work more than the regular and overtime hours allowed by the law of the country where the workers are employed. The regular work week shall not exceed 48 hours. Employers shall allow workers at least 24 consecutive hours of rest in every seven-day period. All overtime work shall be consensual. Employers shall not request overtime on a regular basis and shall compensate all overtime work at a premium rate. Other than in exceptional circumstances, the sum of regular and overtime hours in a week shall not exceed 60 hours."

"Calculation Basis for Overtime Payments

5. Employers shall compensate workers for all hours worked. 

1. C.7.1  The factory shall comply with all applicable laws, regulations and procedures governing the payment of premium rates for work on holidays, rest days, and 
   overtime. 
2. C.7.2  Employees shall be compensated for overtime hours at such premium rate as is 
   legally required in the producing country. 

C.7.2.1 In those countries where there is no legally established overtime
premium, employees shall be compensated for overtime hours at the prevailing industry premium rate or at the internationally recognized overtime rate, whichever is higher.
C.7.3 Employers shall not set production targets, piecework, or any other incentive or production system at such a level that the payment for overtime work performed is less than the premium pay required by law or the FLA Workplace Code.

8. C.8  Overtime Wage Awareness 
   Workers shall be informed, orally and in writing, in language(s) spoken by workers about overtime wage rates prior to undertaking overtime."

"Forced Overtime
The imposition of overtime where workers are unable to leave the work premises constitutes forced labor. "

[ Think of it- 60 hrs maximum in most of the world as defined by some of the largest companies.]

EICC - Electronic Industry Citizenship Coalition

EICC Code of Conduct

"Working Hours

1. Studies of business practices clearly link worker strain to reduced productivity, increased turnover and increased injury and illness. Workweeks are not to exceed the maximum set by local law. Further, a workweek should not be more than 60 hours per week, including overtime, except in emergency or unusual situations. Workers shall be allowed at least one day off per seven-day week. 
2. 4)  Wages and Benefits 
   Compensation paid to workers shall comply with all applicable wage laws, including those relating to minimum wages, overtime hours and legally mandated benefits. In compliance with local laws, workers shall be compensated for overtime at pay rates greater than regular hourly rates. Deductions from wages as a disciplinary measure shall not be permitted. The basis on which workers are being paid is to be provided in a timely manner via pay stub or similar documentation. "

Visual Effects Society Bill of Rights
VES Bill of Rights


Ergonomics and safety (see computer)

Apple Code of Conduct  (imagine if companies and studios had to follow some of these)

Overtime around the world

Kronos report on Overtime violations


"Paul DeCamp, national chair, wage and hour practice, Jackson Lewis LLP, and former Administrator of the U.S. Department of Labor's Wage and Hour Division
"Seeing that significant numbers of employees around the world believe their employers have violated overtime laws should serve as a wake-up call to employers everywhere. If your employees perceive that you are out of compliance, you are at risk for a wage-and-hour lawsuit which can be incredibly costly even if you are ultimately found to be in compliance. Investment in wage and hour compliance should be seen as part of risk management for any smart business."


For Trade Association reference
Kansas Code of Ethics for Certified Arborists

"14. I will not compete with another arborist on the basis of charges for work by underbidding through reduction of his quoted fee after being informed of the fee quoted by a competitor."

Google the topic of interest and you'll find plenty of information.



Related Posts
Global VFX Workers
Overtime

What to do when you're laid off

@saldivar_vfx  on Twitter suggested a blog post on What do you do when your company closes

Being laid off is similar whether planned or not planned so I'll cover that here. I'll probably be doing another post regarding DD and some of the other recent closures in the near future.

Most jobs in the visual effects industry are project to project. That means there's a good chance you will be laid off after completing the current project. Many companies of course try to get projects in but it's difficult to get awarded projects, let alone projects that conform to a schedule.

Even staff positions, management and support positions may disappear without much notice. Please don't think you're immune from this because you've worked there x years or they're nice people. As we've seen many companies have closed or had to lay off hundreds of people due to a number of reasons.


If you're working for a reputable and established visual effects company they will usually give you an idea at the start how long you'll be needed. Usually they can give you a reasonable assessment of when they expect you'll be working till (i.e. April of next year). Schedules for visual effects tend to fluctuate a bit so they should be keeping you informed. If not, you need to be responsible and request an update from someone reliable in management as your deadline approaches.

The first task when you're winding down or hear that there will be layoffs is to confirm with someone from management. Rumors, gossip and pure assumptions is not something to base your status on.  In some cases you may be asked to stay longer to work on a new sequence or further changes. Best to be certain before jumping ship. A good company should tell you when something is up but many times management is overly optimistic and expect a big project or in some cases they have the rug pulled from them by production. Take info from management with a grain of salt and use your gut instincts as well.

If this is not a company closing then they may expect a new project in a few months time. Perhaps they actually have been awarded a project that won't start for several months. You'll have to determine how valid any of that is. Ultimately though you probably can't count too much on it for planning you're future.

Avoid burning bridges with the company and people there if it continues to operate. You may need to work there again in the future or someone there may become your new boss in the future.

Check to see if and when you will be getting your last payment. Once again if this is a reputable company with a standard layoff this shouldn't be a  problem. If this is a company closing that's another issue. Employees are the last in the line of creditors so if the company has filed for bankruptcy you may never see any moneys owed.

Hopefully you haven't continued to work at a company that has already missed paying the previous week or two. If the company you work for doesn't pay everyone one week then all of you need to go to management as a group and get it straightened out and get your payment now. If they miss a payment someone at the company messed up and you're taking the brunt of it and may find you're financing their company yourself. If you continue to work there for future promised money don't be surprised if it never happens. A union would prevent that type of thing. For more on this see my posting VFX Artists don't need to be taken advantage of

Check to see when your health care stops. (Assuming of course the the place you work for has health care) There may be a ramp down period or it may simply stop immediately. Previous to the new health care plan, Affordable Health Care Act, in the US you had 60 days to become enrolled in another health care program. After that it became much, much more difficult to get coverage. Yes, health insurance is expensive but not having health care is even more expensive. You could have an accident or medical problem with no warning so be sure to get coverage for you and your family as quickly as possible. Another issue that a union helps to resolve is getting continuous health care and pension.  If you worked as a union person for enough hours at a union company you would be covered by health insurance and that health insurance coverage would just continue at a new union shop. This avoids the issue of 3 months gap in insurance while you re-qualify at another company. Union health care also banks your hours so if you work a lot you'll have an even larger buffer of coverage time.

Talk to your friends at your current place of employment. They may have leads on jobs. They may already be scheduled on another project elsewhere. The flip side is they're likely to be scrambling as well and worried that there are only so many openings so may view you as competition.

If your company was closed or the layoffs were unplanned there there may be quite a few people at the same time looking for jobs so it's important to start immediately getting the word out and checking for jobs. If you're being laid off after a long, hard project then you may want to consider taking a short time off if possible but better to start the process even if you don't want to work immediately.

Update your resume if necessary. Update your reel if necessary (and time permits).

Ideally your resume and reel would be available online as well in hard copy forms. Consider having a simple website with your resume and video (links) and contact info. Having any or all of these online allows companies to check out your work quickly. Include IMDB links.

Evaluate your situation. Are you willing and able to move to another city? State? Country? For how long? Do you have a house, spouse, family, etc? No point in submitting to a company half way around the world if you wouldn't be willing to work on a project there.

Send out emails to your friends in the business. Just let them know you're available or will be available after x date. If this is a planned layoff let  them know a few weeks in advance. Remember if you've been good at what you do and work well with others they will likely remember and feel good about suggesting you to the company or project they're on. In many cases companies check first with their crews to see if they know people before putting the word out. And if you're being recommended by good people working there you're in a better position than a random resume coming in.

Go to visual effects company websites and check their job listings. You can get listings from the Visual Effects Society website if you're a member, IMDB, Cinefex, Google search, etc. Read the listings carefully and see if you qualify.  You can apply even if you don't match 100% of their criterial but realize it's less likely the further you are from their listing. Get all the information regarding where and who to contact, what format they want your information, etc.

Check the various visual effects job sites for potential jobs that match your position and qualifications.


VFXJobs
VFXJobHunt
VFX-Recruit
Smooth Devil
Creative Planet
Creative Heads
Creative Cow
Motionographer
LinkedIn

Keep track of all of the ones you're interested in with details. Note specific person who you might be in contact with, date you contacted them, how you contacted them, etc. This will avoid confusion later so you don't miss a company or send duplicate information.

Prioritize the jobs based on matches, location, company name, project types, length of project, wages, overtime coverage, etc.  Send out to any and all that fall within your acceptance criteria. Don't be too picky at this stage. Send out a batch of inquires based on the specifics of each job posting. Simultaneous submitting to multiple companies is fine.

Send word out via social media that you're available with link to your website or info. Twitter, LinkedIn, Facebook, VES Forums, etc. are all possible avenues. Don't be ashamed since most jobs are project to project.

Most job postings are a 'we'll call you if needed' so you don't need to follow up to see if they got your email.

Get your information out there but don't pester people via email, twitter, Facebook, etc. by repeatedly sending the same message through the same channel.

Hopefully you'll get some responses and some interviews. Gather info about the company with a clear understanding of the types of projects and work they do.  They're looking for people who are good at what they do and eager to work on the company projects. Let them sell you on why you should work there and you need to sell yourself to them,  why they should hire you. This is a careful line so go easy on the hype. Don't  hurt yourself patting yourself on the back but also don't be afraid to mention what you've accomplished on the last project(s) and your strengths. Keep it factual. They don't want to hire a BS Artist, they want a visual effects artist.

Have a list of questions for them in any interview.  Confirm the basics as outlined in the job postings such as title and duties. You'll want to inquire regarding the wage rate, benefits, overtime situation (how much expected, is there overtime pay, etc) Is this a staff position or project position? When will this job start and when will it last until? How locked is the project they're discussing? It's not unusual for companies to be working on contracts well into the project. You have to determine how solid the company is.

If it requires moving then consider the housing and other costs associated with living there. Can you get the required visa or work permits (if in another country) and does the company handle that? Do they cover any moving expenses? Do they cover any travel or housing expenses? What are the tax implications? (You'll need to research on your own probably). Make sure you won't be losing money when it's all said and done.

Is there a guaranteed amount of work? If you're going to incur a number of expenses (such as to moving a long distance) or turning down other work you want some type of minimum amount of paid work guarantee if at all possible. Usually measured in weeks or months or some type of cancelation fee if the work never happens or is shorter than expected.

How many other visual effects companies are in the same city? If this is the only company in the area then you will have to expect moving when you're laid off.

Don't expect a response from all companies and don't expect that they'll respond quickly. They may have hundreds of applications to sift through. Most likely you will only hear from them if they're interested. (It would be nice if HR departments had their acts together and sent out notices once they made an evaluation.)

If you get a job offer you will have to evaluate it.   When a job offer comes in you have no way of knowing if this is the only one you'll be getting for a year. Or you may accept it only to get a better offer tomorrow from another company. Since you don't know it's best with any response to see when they need a response from you of yes or no. Ideally you'd be able to sleep on it to consider the details or longer to see if other options might be available. If possible you want to avoid grabbing the first one and then canceling right before you're to start or quitting soon after starting. You can quit if there is a real issue as  contract dictates but avoid burning bridges if possible. You never know who or where your jobs may come from.

A valid job offer is worth more than a promised 'sometime in the future' job offer.

Get all of this (details of employment, rate, guarantees, etc) in writing. See my post on Deal memos. Without a legal document from the company you have no official offer and could find yourself without an actual job. Feel free to take another job offer if the first company is unwilling to put it all in writing. Don't be suckered into 'potential' projects coming in. If the company has done their work correctly they too will have some type of memo of understanding if not a full contract with a studio and they should have a minimum requirement. You don't have to take the brunt of a companies poor negotiation or contract skills.  If a project you're hired for never materializes at the company that's not your fault.

Do not become distressed about being unable to get a response or offer right away. There are quite a few criteria that companies use to judge applicants and frequently choices are made out of your control.

Keep trying. The number of visual effects jobs available fluctuate quite a bit since there's a cycle when large projects are worked on and when   different types of positions are hired. So continue to check job availability and postings at least weekly. Sign up for twitter feeds from companies and visual effects job sites so you can be up to date on new jobs.

Consider reviewing your own criteria if prospects don't look good. You may have to widen the range of companies you're interested in working for, the locations you're willing to work at or be willing to step down a notch in positions for the next project. As you move higher and higher up visual effects positions there are less jobs available. Moving down a level may increase the number of jobs you could take.

Use the down time to improve yourself. Review the various job postings you've seen. Are there certain skills or software packages listed related to your position that you don't have? Would those improve your abilities of doing your job? If so it's likely it will also improve your chances of getting a job or help you to stand out from a stack of other resumes.  You may want to consider expanding your horizons to another position so you can work in multiple positions.
Most vendors have trial versions of their software and there may be online tutorials (free and paid) and books to learn from.

You may or may not qualify for unemployment benefits depending on the details of your employment and the various government agencies when you live and work.

When a company fails it emphasizes just how fragile the visual effects eco system is. It also shows just how little control an individual worker has. Even with a signed contract a company that folds may never live up to their obligations to an individual.
A union can't stop a company from going out of business but it can provide the workers at least some protections they don't have as individuals.

When you're hard at work on a visual effects project you are very focused on it to the exclusion of many other things. Use the down time to become reacquainted with your family.

Also use this time to consider your future and get educated on what's happening both in the industry and world. Is visual effects still a viable choice for you? Is there anything you can do to help the situation? Things like the Affordable Health Care Act, pension plans and corporate responsibility are many of the items being discussed here in the US. Be sure to vote in the national election or you may be in for a rude awaking the next time you're laid off.

[Update: Bank in Port St. Lucie is helping DD workers there after their quick closure. Not sure if outsiders can contribute. ]

Reference posts:
VFX Artists don't need to be taken advantage of 
VFX Deal Memo

Related posts:
Getting a Visual Effects job
What makes a good visual effects artist?
Visual Effects Union, Take 2

Other resources:
Check the right side of this blog under VFX Industry State of the Industry
vfxsoldier blog
vfx union

[Update: VFX union points out what the union could do in a situation like DD workers in florida were left stranded when they closed their doors. ]

VFX Deal Memo

When starting a project you should see about getting a document detailing your work agreement. This is sometimes called a deal memo.  Sometimes it’s a full contract. This is so you and the visual effects company have the same understanding and neither assumes something else.  It’s better to find out before you get your first paycheck. These are the items that should be discussed in any final interviews. Even if you’re currently employed you may want to read through this.

Update 8-3-2014
The deal memo may be one of the most important documents you need. It will likely be worth tens of thousands of dollars as a minimum and months or years of your life. Do not take it lightly. And it should be as inclusive as possible to cover not only the expected actions but the unlikely or unexpected issues that might arise. Think of your insurance policies. They are very clear about things and when not specific they have a boilerplate statement that covers those areas.

Be sure to get it taken care of BEFORE incurring major expenses or starting the project.

------

This helps to avoid any misunderstanding and may provide some clarification if the situation or management changes. This agreement should be updated if you’re shifted to another type of job that has different duties or pay.

If the company is large they likely have a Human Resources (HR) Department.  If the company is small you may be dealing with one of the co-owners or the manager.

If you’re a vfx supervisor or other high end vfx person you may have an agent.  They will make sure there is a contract and these issues are reviewed but it’s best to double check what’s being agreed to.

For most vfx artists the vfx company becomes your manager. How good or bad your deal is, your title and credits are in their hands and only you will be able to negotiate what you think is fair.

Below I cover a wide range of issues but not all of these will be covered in a memo or basic agreement.  In some cases there may be other documentation or the company may not provide any paperwork.  You’ll have to determine what are the key issues you want to have in writing.  Please make sure you actually read your deal memo or contract since it relates to you and has specific clauses that could be very important to you.

If there were a VFX Union then many of these would be more consistent.

(I'm still not a lawyer so take this simply as some advice.  If you need legal advice please seek a qualified lawyer. This is also US centric and even then many employment requirements vary by state. But I hope it provides some guidance no matter where you're located.)

Key items:

VFX Company
Are they the ones actually hiring you?
Is there a holding company that actually hires you?
Is the studio or a production company hiring you directly?
Is the vfx company a subcontractor to another vfx company?

Project
What is the project you were hired for? Are you working on a specific project or will you be working on anything and everything?

If you’re expecting to work on project X but they’re putting you on project Y it would be good to know ahead of time.

Title
Be careful here that the job title actually matches what you do and matches what you’re told the job is.  Since there is no VFX Union there are no standard titles and descriptions.  The Visual Effects Society has a list of titles but no specifics. There are some defacto titles that experienced vfx artists use and that better companies follow but new, smaller companies or especially those on the fringes of vfx may use titles in a much different manner.  This can hurt your future employment if it’s not accurate.  Also note that this should be used as your credit title but may not. (See credits later)

At some non-vfx companies titles are handed out like candy.  Vice President of the Front Office (receptionist), Vice Present of Environmental Cleanup (janitor), etc.  The reason this happens and can happen at vfx companies is many people are obsessed with titles. From a companies perspective if they can make you happy with a fancy title and pay you $10 less an hour, so much the better. At some vfx companies everyone is a lead artist.  So in that sense is anyone there an actual lead artist?

A small company that specializes in dirt and scratch removal may call everyone working there a vfx supervisor.  There’s nothing to prevent them from doing so.  But is that truly what you’re doing?  Could you step on a stage of live action and supervise the shoot, work with the director and DP, and then manage 100 vfx artists from a number of disciplines?

If you’re a supervisor of any type, producer or a lead artist you may be considered management.  In some cases that may mean just managing one other person. Be aware that if you’re considered ‘management’ then you may be considered a salaried employee without some of the state/federal protection afforded hourly employees. This means no over time. Now you can see why the company may be eager to consider you part of management and is willing to bestow a corresponding title.

In some cases you may be given a title below what you’re actually doing.  This may happen because you were moved up or over during the course of production and your official documents didn’t get updated. Or this may happen because the company wanted to start you at a lower pay rate than someone in that actual title.  You could be given the title Assistant Animator “just for now”.  Unfortunately if you’re actually a full animator that’s not good for you, especially if the deal memo isn’t updated.

The job title should be specific if it needs to be specific.  An Animator could be a character animator, an effects animator, a simulation animator, etc. A modeler could be a hard surface modeler. If the type of company is unique (game development, web based, etc)  it may be worth putting that aspect in front of the title to make it clear looking at your list credits what you actually did on the project.

If the title doesn’t match what you were doing then it’s tough when you go to interview for your next job.

Interviewer: “I see on your resume (or IMDB) you’re a Production Assistant.” 
“Actually I’m an animator and did extensive work with the main character on my last film. They just didn’t update my title.”
Interviewer: ??  “Well if we have any openings for a PA we will call you.

The opposite is also a problem.
Interviewer: “I see on your resume (or IMDB) you were a Senior Compositing Supervisor.”
“Yes.”
Interviewer: “So were using Nuke or another compositing package?”
“I was using Mocha”
Interviewer:  ???? “So how many people were you managing?”
“I just worked on my own.”
Interviewer: “Well we’ll call you if we need you”.

Now some people try to bluff their way through but if you’re hired for a job you don’t have the experience, knowledge or skill set to do, you’ll be out the door very quickly.  (Never to return there).

You can volunteer that the title was incorrect and that you actually did something else but that is certainly awkward and confusing to all future employers.

You can see why having an accurate title is necessary.

The key test is if you were to leave the company today, what title would the company use in the job posting to get someone to do the job you were doing?  Would people coming in with your present job title expect to be doing what you were doing there?  When you go to look for your next job will it be using the title you were given at your previous company?

Update 8-3-2014
I've now seen a few job postings with Supervisor in the title (CG Supervisor, Production Supervisor, etc) and then discover that some of these are considered Coordinator level positions, even though the posting implies supervising people. I find this very confusing and it may be strictly to get these people classified as management to avoid paying overtime.

To be clear - a supervisor position is just that, supervising others in terms of assigning tasks, overseeing the work, guiding them, etc. They need to know the creative and technical aspects of the area they're covering and should know as much more or more than those they are supervising.

A coordinator typically is one who gathers and dispenses information at the request of a producer, supervisor or others. Their role is to help coordinate or sync different people and departments to make things run smoothly. They work with others but do not typically manage others (possible production assistants) And they should not be considered supervisors.

Job description or job duties
This is where the company states in a sentence or two what you are to do.  If this doesn’t match the title or it doesn’t match your understanding then that’s a problem.  You don’t want to be hired as a compositor and find out part of the job duties are to get coffee for the executive.  Since there’s no standard it’s best to have this included so you’re clear what the title they’ve given you means to the company.

Start date
When are you to start at the company?

Expected end date
When do they expect you to complete the project? Or is this a staff position?  This should be spelled out.

Are you considered an employee or a contractor?
Be aware that as a contactor you have to pay additional taxes, have minimal state/federal protection, have no company benefits and likely will get no overtime.  A contractor may not get any crew gifts or invite to the Christmas party.  Every company is different with regard to how contractors are treated, even if you're requested to do the same exact work as a regular employee. Also be aware that by federal law there are very strict rules about what qualifies you as an independent contractor.  Most independent contractors hired in vfx  should not be classified as an independent contractor.

[Update 11/19/2012  Employee vs Independent Contractor ]

Work hours
What’s a normal workday? Do they start at 8am and go to 8pm? Are they expecting you to work a night shift?

Work day/week
What days are you expected to work? Monday-Friday? Saturday?
How many hours will you be expected to work? 40? 50? 60? 72? 90?
What’s typical? What do they expect as worse case? How long will that be?

Hourly rate
What is your hourly rate?  Is that in local currency?

Or are you on a flat?  And if so, are there any caps? (i.e. 5 day flat, 14 hrs days, 60 hrs, etc)  Note that with a flat there is no overtime within the coverage period and there may be none, ever. There may be minimum state/federal protection for those who work on a flat rate deal.  It's not unusual for a vfx supervisor and/or producer to be on a flat, especially if they're freelance.

How are the number of hours recorded? Do you have a time card and time clock? Do you logon and log off special software?  The company should certainly be tracking your hours.  If they don’t you should so you have a record of the hours you put in.  Remember, the only hours the company will use for any calculations will be the hours they record. See Credits for another area where recorded hours can become an issue.

Classification
In some areas, such as Canada, there are some classifications (such as technician) that may affect your overtime and other deal memo points.
[Update 11/19/2012  VFX Artists are not High Tech Employees  ]

Overtime
Do you get overtime?
When does it kick in? After 8 hrs?
What are the rates? 1 ½x after 8 hrs and 2x after 12 hours?
What about the 6th day? The 7th day? Does the clock reset every Monday in regard to overtime?
Note that state/federal regulations cover some of this.  Is the company offering you less than mandated by law?

Even if you won't be paid overtime you need to consider it when trying to determine your rate. A 60 hour week is equivalent to 70 hours of pay if you assume time and half for over 8 hours.
Here's a video that illustrates how this works.

If you aren't paid overtime (you're management, on a flat, etc) then the more you work the lower your average hourly rate actually becomes.  It's not unusual for those around you to be making more money during the time you're putting in the most hours.


If the company is planning to ‘exchange’ overtime or extra days for time off then that needs to be clearly spelled out and there needs to be a means to monitor it. This type of approach seldom works in vfx. Toward the end of production you may be putting in a lot of extra time.  Your only option is taking the time after the project is over.  Once the project is over, unless you truly are a staff person and they plan to retain you, then the company may simply say the projects over and they can’t pay for any additional time.  Or the vfx producer on the project has wrapped and they have no knowledge of any arrangements.

[Update 8/18/12]

In the US working overtime and being compensated with days off is called Comp Time. In the UK and other places it's called Time Off In Lieu (TOIL) (An apt acronym)  Does this apply to only weekend days or does this apply to actual overtime during the week as well? (time over 40 hrs)  As noted make sure you get this is writing as part of your legal document with someone in charge at the company signing the document. Otherwise you'll never see any comp time. 

Keep in mind comp time and similar arrangements doesn't provide any incentives for the companies to do a better job avoiding massive overtime. It's only in the companies interest. They can take a 6 month project and turn it into a 3 month project with no added cost incurred to them or their clients. But the artists putting in 16 hrs days are certainly incurring a cost to their health, well being and impact on their families. One of the reasons for increased overtime pay is to truly compensate workers and to make it less rewarding for companies to simply work fewer people very long hours.

[Update 11/19.2012  Must read for those in US - Got Overtime? ]

Update 8-3-2014
Some places that use Time Off In Lieu (TOIL) instead of actually paying overtime, simply reduce your contract by the amount of in Lieu you've accumulated. So even though you have a 6 month contract you may find that the company has trimmed your contract with or without your knowledge.
As always, get in writing how overtime works and and how contract extensions or reductions work. Do they need to get your approval to change contract lengths? What if you want to cut it short?

Report to and direction
Who will you be reporting to? Who provides you direction?  If you have multiple people telling you what to do, you want a clear understanding of who your main manager is.

Who approves overtime?
At most companies if you don’t get approval ahead of time then you likely won’t be paid it.  Who can authorize your overtime requirements? Your lead? Your manager? The VFX Producer?  The company manager? Any of these?  You don’t want to work a weekend only to find someone else determines that they won’t pay you for the time you worked after the lead requested you stay and finish a shot.


Benefits
What type of benefits does the company provide if any? Health benefits? Does it cover dental or eye?  Does it cover your family? What are the details? How much do you pay out of your paycheck? How much do you pay for medications, doctor visits or emergency room? Do you need clearance before you go to an emergency room?
When do health care benefits kick in?  If you’re hired for 2 months but it takes 3 months to qualify then you have no health benefits.
Are there any other benefits beside health?
What if you have a disability or become disabled during the project?
What if you get pregnant?

Holidays, Vacation, Pension 

Ha - I just put this in here to see if you were paying attention.  These are covered under union agreements but unless you’re considered full staff at a vfx company you may not see any of these at most places.

Termination

Is there a required termination notice?  Projects change and what was entered as your end date may be pushed back or pushed forward.  Do they have to provide any type of advanced warning or can they simply tell you you’re off the project at the end of today?

Can they terminate your agreement without penalty before you even start?   Is there a minimum number of weeks they are required to pay? Let’s suppose you moved across the city/state/country to work on the project.  You’ve rented an apartment, bought a car, etc based on being employed for 9 months as outlined in the agreement.

The day before you start you get a call the project has been canceled.

Three weeks into the project it’s canceled.  The project is delayed and they tell you it will start any day.  2 months go by without a call.

What happens in any of these cases? Is this covered or are you out of luck? 

Likewise what are the requirements for you to give notice?  Do you need to give a 2 weeks notice? What if you get an offer for a better project for more money before the project starts? Halfway through the project? What are you legal responsibilities? What are your moral responsibilities?

Time Off
If you have something planned where you will need time off, bring it up as soon as possible. If you know you'll need specific time off before the interview you should bring it up and discuss it.

Management
Are you to manage anyone?
If so, how many people?

Reimbursement
Do you expect to incur expenses for the company?  Picking up supplies, etc. What’s the process to do that?

Travel
If you need to travel for the job how is that handled?
Local car mileage reimbursement if you have to travel across town or to another town on business?
Do you get per diem or do you have to keep all receipts and turn them in? Is the per diem based on the location you’re going to?
Do they arrange for flights, rental cars and hotels?
If you’re flying is there a minimum flying class? (i.e. will you be traveling by air for 18 hrs in coach?)

[Added 11/9/2012
Moving
Are you moving to a new location/state/country to do the project?
Is any of this covered in your employment agreement? Does the company pay to relocate you? What are the terms? Do they require x amount of time or subtract it from your salary?
Be sure to consider the cost of moving and cost of living if you are moving.
See Expatisian to compare expenses. ]

[Update 8-3-2014
Is your visa or other paperwork all taken care of? What are the costs and who handles that? What if there's an unexpected problem? (You can't get it, you need to leave the country before the project ends, etc)

The VES has a Travel and Relocation links that should be checked.

Also don't forget to check with the local labor laws to make sure the deal memo is legal and that you know what is/isn't considered correct where you work.

Items to check - classification (employee, contractor), legal protections, maximum hours, Overtime pay, health and safety regulations, time off, minimum wages, etc.
(The below links are simply a starting point. Please do your own research as necessary.)

BC Labor Laws
Ontario Labor Laws
Quebec Labor Laws
UK Labor Laws (EU)
UK Labor Laws
UK Employment Laws 
NZ Labor Laws
NZ Minimum Labor Rights
California Labor Laws
US Labor Laws
US Labor Laws 2 
State Labor Laws
U.S. vs. U.K. Employment Law: What's the Difference?


Equipment
Are you expected to supply any of your own equipment?
If so, is there any extra fee for that or are you expected to provide it as part of your standard rate? If you have to bring in your own computer or other gear you have to consider your expense, upkeep, software licenses and replacement costs that the company doesn’t have to.
Will it be covered by their insurance or do you need to cover it?
Check your homeowners insurance for business use.

Credits
Not everyone who works on a movie or television project will get a credit on it. Typically the studios mandate the number of credits a company may have based on the amount of work the company is doing on the project and how important they consider the work.  If you’re company #14 of 14 you may get 5 credits or only a company credit.  All of that is worked out in the contract between the company and the studio.  If your company is a subcontractor to another vfx company then the chances of getting many credits is likely further reduced.  The studios do not like to give out credits and use them as part of their contract bartering system.

And yet official credits on a film, resume and IMDB (Internet Movie Database) are important to the artist  to get work.

I’ve seen people forgotten from the credit lists and people being assigned a credit to a project that they didn’t work on simply because the company couldn’t get them credit on the project they spent a year working on.  I’ve seen a supervisor who didn’t work on a show be co-listed on a project for marketing reasons.  I’ve also seen people who worked through Christmas vacation to make the vfx for a film possible and then be dropped off the credits because the owner didn’t want any staff listed.

If a company does a fair amount of work on a project then they will usually be provided a number of credit slots.  Typically the key personel on the project will get credit (supervisors, producers, key leads, etc). At some companies the owners or main management may be given credits regardless of how much they were involved once the project starts. Support staff (IT, R&D, etc) at many of the large vfx companies are cycled through so they  are listed on a feature a year. Now comes the tricky part of deciding who get’s credit on a film or not since it’s almost impossible to list every single person who worked on a project.  The vfx producer, vfx supervisor and company management may go through the list of names and try to make selections based on the artist’s contributions to the project. They may want to make sure some are selected from each department.  The list of names includes job title and the number of hours worked.

Whether contractor’s are treated differently than employees for credits will depend on the company.

Hopefully your agreement states your true title and not a lower one that you might have been hired under (if that’s changed).  If not, you may be over looked or be placed lower on the list.

If your title is actually above your true position then the vfx producer may reduce it for the real credits or the vfx producer at the studio may trim them back to make them more inline with the other companies.

When it comes down to filling out the last few spots they may refer to the number of hours each person put in on the project.  They’d rather give it to someone who worked 6 months than someone who filled in for a week to help out during the crunch period.  Remember those times you worked longer hours for free to try to help your department head?  Not only did you not get paid for that time but it’s likely your lack of documented hours bumps you off the credit list. Bazinga.

Demo reel
Are you allowed to use material for your demo reel?  Many studios obviously don’t allow any material out before the release of the movie. What if the movie is shelved after you worked on it? Will you ever be able to show anything? Can you use in progress material to show before and after to make it clear what you did?  Do you have to wait for the DVD to come out (possibly a year or more after you worked on it) and rip it to create your demo reel or can you get materials from the vfx company?

NDA
Many companies will require an NDA (Non Disclosure Agreement).  The studios tend to enforce mandates to prevent the release of photos or information regarding the project.  Do not cross this line by posting or sharing photos, videos, scripts, etc.  If you do so you may not only be fired but there will be a legal action against you with likely heavy fines.  Check the FBI warning at the start of a DVD. $250,000 They’re not kidding.  Is your job and future worth it to be ‘cool’ by posting something?  Here’s a story from years past: On STAR TREK: THE MOTION PICTURE, the night animation cameraman called into a radio station to make a request. Of course he was asked what he was doing at that hour.  The cameraman asked if this was off the record and when he was assured it was he proceeded to discuss the project.  When the head of the studio was going to work that morning he was listening to the radio when they proceeded to play back the entire recording.  He was not happy.  Luckily the cameraman was only given a warning and continues to work.  Today I doubt if he’d be as lucky.

The company may also have NDA’s for proprietary info related to the company and the processes there.  Check to make sure they don’t go overboard.  In some cases they may state they own all your ideas or any information learned unless you list the items that you already know.

Non-compete clauses
Some non-vfx companies have do not compete clauses to prevent key employees from starting a competing company or going to a competitor.  No vfx company should have this in their agreements unless it’s an extreme and unusual situation.  VFX artist by their very nature are freelance so this type of thing would prevent you from working elsewhere. As always, double-check any paperwork you have been provided.

Development
What if you develop something at the company?  A new methodology? A new technique? Software? (Assuming you have not been hired specifically for these tasks).  Do you own any of this? Does the company have an exclusive to it?

Trial Probation
Is there a trial or probation period for new employees?
If so, what does that mean?
(Don’t let a company tell you that you need to work for free so they can see if they want to hire you.)

Employee handbook
Larger companies will likely have some type of employee handbook, which may cover some of the items here.  They’ll likely cover the items their insurance requires for liability reasons or the government such as inappropriate behavior, etc.

Job Reviews
Is there a job review process?  For a short-term project you might not get a job review but if you’re on staff or on a long project they may have job reviews.  What’s the actual process, who will be reviewing you and what are you being judged on?

Promises
If any benefits or extras were discussed during the interview process they should be listed in this document.  A promise from a company is only as good as the signed document it is on.  If they made promises during the interview to do or give you xyz and it’s not in writing then it doesn’t exist. Sometimes people interviewing you will regale you with all of these enticing things that they have no power to actually provide. (Potential things like credits) You don’t want to take the job only to find out all of that was fictional.

The document should be signed and dated by you and an official rep for the company to give the document some validity.

[Update: 11/6/2012 Please make sure to have HR provide you all the paperwork for your Health Care Coverage before you sign your deal memo. Check for maternity, pre-existing conditions, exclusions, vision care, disability, etc. so you understand what is included and what isn't. Check on cost of options to get more coverage if you wish.
Here's a sad example of the fine details: Lucasfilm Employee Terminated After Tending To Pregnant Wife
Here's another article on it: Lucasfilm Faces New Accusation of Pregnancy Discrimination ]

Update 8-3-2014
So what does the deal memo say if there's a snag?
As mentioned what is your start date and what if that project is delayed or canceled before you start but you have already accumulated expenses or quit your other job?
What if you're to move to another country and there's some type of visa or paperwork hangup or if you don't qualify for some reason? Who covers expenses incurred?

Some of these things are happening more and more and should be included in the deal memo.
The only person looking after your interest is you. The company will be focused on their interest and as such the deal memo language will almost always be in their favor and will likely take little responsibility if you have expenses or a snag that's not spelled out.

As mentioned the deal memo is like an insurance policy in that it should cover the not only the expected issues but also the unexpected issues. Don't let the company simply wave away any questions or issues as 'no worries'. You could be the one paying dearly.

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Related:
Getting a Visual Effects Job 
Visual Effects Positions

Related elsewhere
Workplace issues - vfxlaw
Deal Memo Example form  - vfxlaw