EXPLANATORY NOTE REGULATION 4 4.2 The trigger for a compensation claim is the movement of a Player for the first time outside of his Home Union (i.e. the Union with which the Player is, or was first Registered or, if different, the Union where a Player was trained or developed). 4.3 Under Regulation 4 compensation is only payable when a Player moves outside of his Home Union for the first time and enters into a written agreement, either immediately or within 3 years, to play rugby in another Union. 4.4 Compensation is based on the Standard Annual Development Investment representing the investment that a Union, Rugby Body or Club can demonstrate has been made in a Player's training and development and the other factors set out in Regulation 4.7.5. 4.5 In effect, a Union, Rugby Body or Club should be properly reimbursed for its “research and development” efforts in respect of Players. It is essential, therefore, that appropriate records of a Player's progress are maintained. 4.6 The quality of training and development invested in a Player will not only improve that Player's prospects of playing the Game full time it will also raise playing standards in general. 4.7 The compensation scheme should provide an incentive for all Unions, Rugby Bodies and Clubs to increase and improve their training and development programmes with appropriate support from their Unions and World Rugby.10 5. When can Compensation be Claimed? 5.1 The Union, and/or Rugby Body and/or Club who trained and developed a Player is entitled to claim compensation on the transfer of a Player's registration in the following circumstances only: 5.1.1 when a Contract Player, whose written agreement has expired, enters into a written agreement for the first time with a Union, Rugby Body or Club outside his Home Union (Regulation 4.7.2(a)); 5.1.2 when a Non-contract Player enters into a written agreement for the first time with a Union, Rugby Body or Club outside his Home Union (Regulation 4.7.2(b)); 10The general principles of international Player movement are illustrated diagrammatically in Appendix 2. Last update: 14 January, 2015 94
World Rugby Handbook
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