The Midlands have advised all their clubs about the necessity to contract players if the player is receiving a material benefit from playing rugby.
Not sure if the North are planning similar advice, but then again, perhaps it's not needed?
(Sorry the posting is a bit long)
Note - I have added the names of the two clubs who were caught out last season.
Letter from chairman of Midlands 1/9/16 – on North Midlands web site.
http://www.northmidsrfu.co.uk/important-information-payment-players-receipt-material-benefit/Important information on payment of players and receipt of material benefit The following letter has been sent to clubs by Paul Kaminski, chairman of the Midlands Division Organising Committee.
North Midlands have organised workshops on the subject in each of three Domestic Unions which clubs are strongly advised to attend.
The workshops will be held at: Malvern RFC on October 5, Birmingham Exiles on October 12 and Newport on October 19
Letter from Paul Kaminski:
Dear Rugby Colleague,
Please note that this is a letter sent to all clubs competing in the Midlands Division of the RFU English Clubs Rugby Union Championship. It should not be interpreted as an allegation or inference against any individual club, but rather as general advice to all clubs.
Most of you are probably aware that during the immediate past season, two clubs (one in the South East {MEDWAY} and one in the Midlands {BROMSGROVE}) were charged by the RFU with failing to contract players who had received payment and/or material benefit. In the case of the SE club there were also issues with relation to immigration and HMRC. This club was dealt with most severely, with the consequence that the club suffered relegation and some of its officers were suspended from involvement with rugby union. The Midlands club’s offences were relatively minor in comparison and confined to the contracting of players. Nevertheless, even in this case, the club will commence the coming season with a 5 points deduction and a further 20 points suspended.
With the above in mind, I can tell you that a check of the registration lists of Midlands clubs reveals that less than a handful (with fingers to spare!) show any contracted players. It is true that it can take some weeks for the RFU to approve contracts and therefore there may be some in the pipeline. However, it stretches credulity to believe that so few players in the Midlands at levels 5 and below receive any payment or material benefit. Therefore, I believe it is incumbent upon the MDOC to remind clubs of their obligations in these matters.
1. Where the club registers overseas players, it is obliged to ensure that the Law regarding immigration and visas is fully complied with.
2. Where the club pays players or gives material benefit, even of a minor nature, this is subject to taxation and the requirements of HMRC must be fully met.
3. Where the club pays players or gives material benefit, even of a minor nature, such players must be in receipt of a written contract and that contract submitted to the RFU.
If a club has any doubt with regard to 1 and 2 above, it should seek professional advice. If a club has any doubt with regard to 3 above, advice can be sought from the RFU.
It is not the direct responsibility of the MDOC to police or pursue any of these matters. Nonetheless, should any potential breach or allegation be notified to the MDOC, it would be obliged to forward this to RFU Discipline for further investigation.
I have also been informed that RFU Discipline may be considering a more active role, perhaps selecting clubs at random or by using an intelligence led approach. Clubs need to be on guard in ensuring they are compliant and if not then acting with urgency to ensure compliance.
Please see below for a copy of the RFU rule regarding players’ contracts.
My apologies for the nature of this letter, but I am sure you will understand its intention.
Best wishes for the coming season,
Paul Kaminski
Chairman, MDOC.
Payments & Benefits to Players – Please refer more fully to the RFU Game Communication circulated 2 April 2016 of which the below is an extract.
The RFU has in place a number of Regulations that must be adhered to if a Player receives any Material Benefit for playing Rugby Union. The definition of Material Benefit is broad and includes:
“money, consideration, gifts or any other benefits whatsoever contracted, promised or given to a person or at his direction, but does not include reimbursement of proper expenses incurred for reasonable travel, accommodation, subsistence or other expenses
incurred in relation to the Game and as particularised in RFU Regulation 7.3.”
Therefore, if a Club (or other third party) pays a Material Benefit to any Player (whether playing in the community or professional game), there must be a contract in place with that Player (RFU Regulation 7.2) and the Player must be Effectively Registered
as a contracted Player (RFU Regulation 14.6.3) in accordance with the specific process set out for Contracted Players.
Clubs and Players are also reminded that there are certain legal requirements that must be followed if providing or receiving any Material Benefit, for example by complying with:
– Applicable immigration laws for players coming from abroad and/or not holding a
British passport.
– All tax requirements imposed by HMRC (such as PAYE, income tax payments, autoenrolment
etc.).
– Employment legislation.
– National minimum wage legislation.