Mastering the Compensation Table
According to Annex 2 the Compensation Policies are the official policies that describe possible situations that would entitle Opportunity Providers (OP) and/or Exchange Participants (EP) to receive compensation in the event an exchange is not approved, realized or completed.
You don’t know when compensations apply? Which entity is liable for compensation for each case? This article is for you.
- From Approved to Realized is the preparation phase of the customer flow, many things can go wrong and the EP/OP/SE/HE can cancel due to different reasons. The reason for the break always determines the policies that are applicable. That is why we always ask for reason for breaks when we receive a consultancy about compensation.
- The Sending Entity are basically only held liable to compensate the HE when the EP cancels the approval for a reason that is not a family emergency, health issues nor legal issues or for when the EP doesn’t meet the requirements to be qualified as an Exchange Participant in such cases, SE finds a replacement EP within two weeks of the APD Break date, and gets that EP Realized within a maximum of one month after the original RE date; or pays OP expenses expressed in OP's contract with HE. The only case where the SE is held liable to compensate the EP is when the borders are closed, in that case the SE need to find another opportunity for the EP within 2 weeks or reimburse the EP fees.
- The Hosting Entity could be held liable if the following cases occur: if the Opportunity Provider fails to qualify as an OP. Also if the HE fails to deliver the required VISA documents to the EP, the HE should compensate all expenses that were incurred by the EP and listed in Annex 2. If the HE or the OP cancel, then the HE need to find a replacement OP for the EP with the same job description within two weeks from EP notification date, in suitable time for the same RE date or pays all EP expenses he/she had so far (EP Fee, Visa, Travel expenses etc.) - From Realized to Completed is the Experience and post-experience phase of the customer flow, in this part we will tackle the things that could go wrong in an experience and identify liabilities.
- The Sending Entity can be held liable if the EP ends the realization earlier for reasons that are not a family emergency, health issues or legal Issues, if it’s for other reasons, the SE should find a replacement EP or cover OP fees to the HE. The other case would be if the EP doesn’t meet the qualifications to be an Exchange Participant, the SE would have to find a replacement EP or pay OP fees to the HE.
- The Hosting Entity can be held liable in the following cases, if OP fails to qualify as an Opportunity Provider here the HE should find a replacement OP with the same JD for the EP or pay all travel expenses to the EP. Next possibility would be if the EP applies for a different VISA or if the EP’s visa is against HE’s territory laws or if the EP gets deported because of HE mistake or negligence, the HE should pay full reimbursement plus migration fines if applicable.If the EP’s salary / opportunity benefits / accommodation / transportation is different than agreed then full reimbursement is also applicable for the EP. (fines are applicable for salary violations with 2% of full amount per delay day) If the duration is shorter than the duration agreed or shorter than product minimums due to HE or OP issues and JD was different than the one in YOP with 50% (and HE were informed during RE), full reimbursement is also applicable.
Nayrouz
ICB CS Team