Harvey Weinstein's contract allowed for sexual misconduct as long as he paid
Harvey Weinstein, pictured here in 2015, has been accused of rape and sexual misconduct EPA/ETIENNE LAURENT / POOL

Harvey Weinstein’s contract with The Weinstein Company is said to have included a clause that mean thee producer could get sued for sexual harassment as long as he coughed up the money if any claims were made against him.

The disgraced movie producer, who has been accused of rape and sexual misconduct by scores of women in recent weeks, signed a 2015 employment contract which could mean that he has been fired illegally, TMZ report.

Weinstein’s contract stated that if the movie producer ‘treated someone improperly in violation of the company’s Code of Conduct’, then he would have to then fork out the cash to TWC for any settlements or judgements from his own pocket.

In addition to this the documents, seen by TMZ, said: ‘You [Weinstein] will pay the company liquidated damages of $250,000 (£188,000) for the first such instance, $500,000 (£376,000) for the second such instance, $750,000 (£564,000) for the third such instance, and $1,000,000 (£752,000) for each additional instance.’

In that case, should Weinstein have had to pay out, it would then constitute as a ‘cure’ for the misconduct and no further action would then be taken, according to the contract.

It then outlines the conditions for how the Board of Directors could fire Weinstein, which is if he was indicted or convicted of a crime. At the time Weinsten left the company, he had not been.

There is however a clause which said that Weinstein could be fired for ‘the perpetuation by you [Weinstein] of a material fraud against the company.’

It has been alleged that the TWC had been aware of previous settlements but allegedly ‘assumed’ that they were a ruse for consensual affairs.

It’s been reported that even if Weinstein was proven to have committed fraud by not telling the Board of Directors, his contract says that he is entitled to a right to mediation and then arbitration before he is fired.

He did not get either with TWC. Sources close to the shamed producer have said that he has not received a reason.

Meanwhile it’s been claimed that TWC felt justified as the board had not been made aware of settlements. However, it’s also been claimed that no further settlements have been made since the contract was signed two years ago.

At the time of Weinstein’s departure, The Weinstein Company said in a statement: ‘In light of new information about misconduct by Harvey Weinstein that has emerged in the past few days, the directors of The Weinstein Company – Robert Weinstein, Lance Maerov, Richard Koenigsberg and Tarak Ben Ammar – have determined, and have informed Harvey Weinstein, that his employment with The Weinstein Company is terminated, effective immediately.’

Following the initial report in the New York Times, Weinstein released a statement which read:

‘I appreciate the way I’ve behaved with colleagues in the past has caused a lot of pain, and I sincerely apologize for it. Though I’m trying to do better, I know I have a long way to go. That is my commitment. My journey now will be to learn about myself and conquer my demons. Over the last year I’ve asked [lawyer and TV legal analyst] Lisa Bloom to tutor me and she’s put together a team of people. I’ve brought on therapists and I plan to take a leave of absence from my company and to deal with this issue head on. I so respect all women and regret what happened. I hope that my actions will speak louder than words and that one day we will all be able to earn their trust and sit down together with Lisa to learn more.

‘Jay Z wrote in 4:44: “I’m not the man I thought I was and I better be that man for my children.” The same is true for me. I want a second chance in the community but I know I’ve got work to do to earn it. I have goals that are now priorities. Trust me, this isn’t an overnight process. I’ve been trying to do this for 10 years and this is a wake-up call. I cannot be more remorseful about the people I hurt and I plan to do right by all of them. (sic).’

We have reached out to The Weinstein Company for a comment.