Music in the workplace
Do you let your staff listen to the radio whilst they are working? Did you know you need a license if you do? Some employers have received demands for unpaid licence fees dating back several years.
The Federation of Small Businesses (FSB) has called for new rules to exempt small businesses of 10 employees or less from licensing fees. Currently a license is required (by law) from the Performing Rights Society (PRS) for any "mechanical performance" of recorded music in the workplace, whether that is by radio, CD, television set or over the internet. So how much does this cost?
It isn't entirely clear, but according to the PRS website, the typical cost for playing music in the staff canteen is the equivalent of just 15 pence per day for up to 25 employees, so for businesses working Monday to Friday (250 days per year), that is around £37 per year. However, according to my reading of the PRS documents, there is a minimum charge of £85 per year, and these rates only apply if you pay in advance. If you are contacted by the PRS and asked to pay retrospectively then there is a 50% surcharge. If you play music in more than one room at your workplace then you may need additional licenses for each location. However, it appears that the fees apply to "public broadcast" where two or more people can hear the music being played, suggesting that staff listening through headphones would be exempt from PRS licensing.
Can I also remind you that in addition to the PRS license, a business playing radio or TV in the workplace also needs the appropriate radio or TV license from the government.
For more information about the PRS, please see:
www.mcps-prs-alliance.co.uk
For more information about the FSB, please see:
www.fsb.org.uk
18th July 2008