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SM Entertainment makes updates to trainee contracts following FTC judgment

By elliefilet   Tuesday, March 7, 2017   73,386   4,727   0



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SM Entertainment has announced it's made updates to trainee contracts following the Fair Trade Commission's recent ruling on unjust contract terms.

SEE ALSO: Artist You Need To Know: D.MEANOR

On March 7, SM Entertainment revealed it deleted the below stipulations from their contracts with trainees, and both changes are in accordance with the FTC's ruling against "claiming arbitrary reasons to terminate a trainee contract, such as due to defamation of the company name or investment losses. (They will be prohibited.)"

The following have been deleted from SME's trainee contracts:

"Shall not engage in any activity that damages the dignity of a public arts or cultural artist to the detriment of entertainment activities and shall not act in such a way as to damage the honor or credibility of the entertainer of the party or its owner."

"Shall not engage in any activity that damages the dignity of a public arts or cultural artist so as to cause interference with entertainment activities and shall not act in a manner that would undermine the honor or credibility of the entertainer or its affiliated artists."

As previously reported, the Fair Trade Commission (FTC) stated a total of 6 unjust terms within trainee contracts used by large-scale entertainment companies have been corrected. 

What are your thoughts on SME's changes?
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JYJRainbow Wednesday, March 8, 2017

SM "we have a tiny bit less cruel contracts now"

ketisanmo Tuesday, March 7, 2017

Just like SM media play and deleted the least important clause to get itself in the news in a positive way. What about the other clauses. Please come back when you have deleted them lol

wonderboy47 Tuesday, March 7, 2017

This wasn't even the most important thing changed. Especially for SM there were so many other changes directly related to them that they need to change about their contracts. They are the company with the most court cases against their former artists so...

lyricaldancer10 wonderboy47 Tuesday, March 7, 2017

Couldn't be that lucky

BigBlueagain Tuesday, March 7, 2017

So wait, it's illegal now in Korea to require that you not cause the company footing all your bills to lose money because of your actions? Seriously? The easiest way to get around this is just shelve a trainee until his/her contract runs out and put them so far back on the self that they begin to wonder if sunlight was something they imagined.

pink_oracle Tuesday, March 7, 2017

The title got me hopeful but none of this will improve the working conditions of artists under crappy contracts.

whatever101 Tuesday, March 7, 2017

this clause is such BS cause otherwise how did Scamyoung debut then?

AeriSilverlight Tuesday, March 7, 2017

Okay, question to those who have jobs. The terms deleted from above, aren't they stated in many contracts, not just entertainment companies? Acting ways to not damage the reputation etc. ? I know the FTC is trying to better these contracts, but is deleting it really going to do much? Cause my contract stated something pretty similar

Blue82 AeriSilverlight Tuesday, March 7, 2017

The way they are worded is what is important. You can't cause significant damage while acting on behalf of the company but this prevents them from firing someone just because they date or got caught swearing or had a drink when they were underage. It does not stop them from firing them for large scandals such as DUIs, rape allegations, illegal activities committed while working for them. I work for a hospital and we have really strict social media guidelines as well as guidelines on what we can say to the press. If we have a facebook we can say what we want within reason but if we put them as our employer then we are more limited and can be fired for something we post if it reflects badly on the hospital such as racism, bigotry, things like that.

BigBlueagain Blue82 Tuesday, March 7, 2017

It just means that they'll be taking kids and their parent to court now for judgements they have no hope of ever repaying for defamation. It's a REALLY stupid rule.

michinpabo Tuesday, March 7, 2017

Leaving it in or taking it out doesn't really change anything. There are still many ways a company can burn a trainee that they find undesirable.

Exo_Leia Tuesday, March 7, 2017

They changed it due to the law, but do you really think they're just gonna let their trainees do whatever they want? And if it's a smart trainee who wants to lower their chances for a scandal, they won't do anything. Honestly a stupid addition or change imo

intricate Tuesday, March 7, 2017

funny... thing is those points are already governed by law. why would they reiterate (and even change) it in a contract? I bet an HR expert is able to reduce the size of these trainee contracts by a significant amount if it includes even basic governmental regulations such as these. Not to mention removing exploitable gaps.

jokerfish intricate Tuesday, March 7, 2017

"Deleted" meaning it was in the contract- then the law changed saying they COULDN'T do this anymore. And so they deleted it. You think SM is so dumb they need a HR expert (which they probably already have) to tell them not to keep an illegal clause in their contracts?

intricate jokerfish Tuesday, March 7, 2017

the law never changed.. it's just the FTC, which is a watchdog, that detected these clauses in the contracts and pointed out the agencies shouldn't have it in their contract. It's like including pension regulations in your contract that are somehow less beneficial to you than what is stated in the law. You can't do that.

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