Payment and Settlement

Agree on the work before agreeing on the payment

A payment arrangement is only meaningful when both parties understand what they are paying for.

A customer may request a completed product, a specific service, a set of units, a technical installation or a larger project. Each requires a clear definition of the expected result.

Before accepting an assignment, the worker and the relevant customer or service provider should establish:

• Deliverables: What must be produced, performed, installed or handed over?
• Quantity and scope: How much work is included, and what is excluded?
• Quality criteria: What standards must the result meet?
• Completion conditions: What evidence, inspection or approval is required?
• Compensation: What amount or rate applies, and how is the total calculated?
• Payment conditions: When does payment become due, and what events trigger it?
• Resources and expenses: Who provides materials, tools, transport and other required inputs?
• Changes and exceptions: How will additional work, delays, incomplete delivery or disputed results be handled?

The level of detail should be proportionate to the assignment. A small, routine task may need a short written agreement. A complex project may require a detailed scope, milestones and documented acceptance criteria.

The objective is not paperwork for its own sake. It is to prevent avoidable disagreement after the work has been performed.

1. Define the deliverable

A deliverable describes the result the worker is expected to provide. It should be specific enough that both parties can determine whether the agreed work has been completed.

For example:

• A garment assignment may specify the number of garments, measurements, materials, stitching requirements and finishing standard.
• A digital-services assignment may specify the number and format of documents, the data fields to be completed, validation requirements and handover method.
• A technical installation may specify the equipment to be installed, the work area, functional tests and required handover records.
• A hospitality assignment may specify the service tasks, expected schedule and applicable hygiene or service standards.

These examples illustrate the principle; they do not imply that every listed service is currently available through the Marketplace.

A deliverable should distinguish between the required result and the method used to achieve it. Where the customer requires a particular method, material or procedure, that requirement should be stated explicitly. Otherwise, the worker should have appropriate freedom to choose a suitable method within the agreed safety and quality standards.

2. Choose a suitable compensation model

The payment model should reflect the nature of the work, how its output can be measured and where responsibility for the overall result lies.

The intended KarmaYoga approach favours connecting compensation to productive work wherever practical. Depending on the occupation and arrangement, this may take several forms.

Per job or assignment

A defined amount is agreed for completing a specific job or assignment.

This works best when the scope is sufficiently clear and the likely effort and resources can be estimated.

Per unit or accepted output

Payment is calculated using a defined quantity, such as each completed item or unit of work that meets the agreed standard.

The parties should define what counts as an acceptable unit, how quantities are recorded and how defective or incomplete items are treated.

Per project or milestone

A larger assignment is divided into defined stages or deliverables. Each milestone has an identifiable completion condition and an associated payment arrangement.

This can help both parties manage work that takes longer or requires several stages of delivery.

Other agreed arrangements

Some occupations may require a different payment model, including time-based compensation or a combination of methods. The appropriate arrangement depends on the work, the responsibilities involved and applicable law.

The Marketplace should not force every occupation into the same compensation structure. The model should make the relationship between the work, the expected result and the payment understandable.

3. Calculate the amount fairly

Before an assignment is accepted, the parties should understand how the agreed compensation is calculated.

Depending on the work, the estimate may account for:

• the quantity and complexity of the deliverables;
• the time, skill and responsibility required;
• materials and consumables;
• tools, equipment or specialist resources;
• travel or other agreed expenses;
• inspection, testing, packaging or handover requirements;
• applicable taxes and other lawful charges.

The agreement should clarify whether the quoted amount includes these costs or whether particular items are handled separately.

For example, a garment-production rate may include stitching labour but exclude fabric and accessories. A technical installation price may include labour but require the customer to supply equipment. Either arrangement can be workable if it is understood before the commitment is made.

A worker should be able to estimate the work they are accepting. A customer should be able to understand what the quoted amount covers.

The amount should not be changed retrospectively simply because one party later discovers that the original arrangement was inconvenient. Where an unforeseen condition materially changes the work, the parties should discuss and agree on a revision before proceeding wherever practicable.

4. Agree on acceptance before work begins

Payment and acceptance are closely related, but they are not the same thing.

Completion means the worker has performed the agreed work. Acceptance means the result has been reviewed against the applicable requirements and accepted under the agreed arrangement.

Before work begins, the parties should know:

• what will be checked;
• who is responsible for checking it;
• what evidence must be supplied;
• what happens if a deliverable does not meet the stated criteria;
• how corrections or disagreements will be handled;
• which acceptance event triggers payment, where payment is conditional on acceptance.

Acceptance criteria should be objective wherever possible. Measurements, quantities, test results, required documents and clearly described service outcomes are generally more useful than an undefined expectation that the work must be satisfactory.

A customer should not introduce new requirements after delivery and treat them as if they were part of the original scope. Similarly, a worker should not consider a deliverable accepted merely because it has been submitted.

The agreed terms should govern the review and settlement process.

5. Decide when payment becomes due

Payment timing must be agreed as part of the assignment, not left until the work is finished.

Depending on the work and the parties’ arrangement, payment may be linked to:

• completion of the assignment;
• acceptance of a defined deliverable;
• acceptance of individual units of output;
• completion of agreed milestones;
• another clearly specified event permitted by the applicable terms and law.

The agreement should identify the event that makes payment due and the expected settlement period. If the assignment has several milestones, the amount or calculation method for each milestone should be clear.

Where an advance, deposit or staged payment is appropriate, the parties should document its amount, purpose and treatment if the work changes or does not proceed.

No single payment schedule is suitable for every occupation. A small service task and a multi-stage production order may require different arrangements.

The guiding principle is to agree on the payment trigger before accepting the work, then follow the agreed terms consistently.

6. What happens when output is incomplete or rejected?

A settlement process must address exceptions as well as successful completion.

A deliverable may be incomplete, a quantity may be disputed, or an inspection may identify a defect. The response should depend on the original scope, the acceptance criteria, the facts and the applicable agreement.

A fair process should distinguish between:

• work that has not yet been completed;
• work that has been completed but needs a defined correction;
• output that does not meet an agreed quality requirement;
• additional work requested by the customer after the scope was agreed;
• problems caused by unavailable resources, changed conditions or another party’s actions;
• disagreements about whether the stated requirements have been met.

Where correction is required, the issue should be described specifically. The parties should establish what must be corrected, who is responsible and how the correction affects the schedule and settlement.

The treatment of rework, rejected units, partial completion and cancellation should be agreed in advance where reasonably foreseeable. Any deduction, withholding or adjustment must be consistent with the agreement and applicable law.

A quality concern should not automatically be treated as proof of misconduct. Equally, a worker should not be paid as though all requirements were met when the agreed terms establish that material work remains incomplete.

Where the parties cannot resolve a disagreement directly, they should use the applicable dispute-resolution process.

7. Keep evidence of work and payment

A reliable settlement process depends on records that allow the parties to understand what happened.

Depending on the assignment, relevant records may include:

• the original assignment description and agreed scope;
• the accepted compensation model and amount;
• approved changes to the work;
• quantities produced or services completed;
• submission dates and completion evidence;
• inspection and acceptance results;
• corrections or disputed items;
• invoices, receipts or other relevant payment records;
• payment due dates and settlement confirmation.

The records should be proportionate to the value, complexity and risk of the work. A routine small assignment does not need the same documentation as a large project.

Where a Marketplace is involved, its intended role may include maintaining appropriate assignment and settlement records. The precise capabilities, access permissions, record-retention rules and payment arrangements must be defined before those functions are treated as operational.

Records should be handled responsibly, with appropriate regard for privacy, confidentiality and applicable legal requirements.

8. Understand who is responsible for settlement

The parties involved in an assignment may differ.

A customer may engage an Independent Worker directly, request a service through a Service Provider, or obtain work through an organisation participating in the Marketplace. The payment responsibilities must match the actual arrangement.

Before work begins, the parties should know:

• who is engaging the worker;
• who owes the payment;
• who confirms completion or acceptance;
• whether a Service Provider coordinates payment to other workers;
• whether the Marketplace is facilitating the arrangement or is itself a party to it;
• what records and procedures apply if settlement is delayed or disputed.

The involvement of a Marketplace does not, by itself, establish that the Marketplace is the employer, contracting customer, payment intermediary or guarantor of payment. Those roles must be expressly defined in the relevant arrangements.

Wara KarmaYoga Foundation and Trust focus on education, training, community development and livelihood preparation. The intended commercial Marketplace role belongs to Wara Systems , with participation open to suitable external organisations and providers. The specific contracting, payment and settlement model must be established for the service being offered.

9. Payment arrangements should support worker independence

A clear payment model helps a worker evaluate an opportunity before committing time and resources.

For an Independent Worker, this includes understanding the scope, estimating the effort, accounting for agreed costs and deciding whether the assignment is suitable. For a Service Provider, it also includes estimating the resources needed to deliver the overall service and agreeing on how work distributed to other workers will be compensated.

The responsibility grows with the scope of the commitment. A person coordinating a larger order should not agree to a customer price without considering the cost of delivery, the quality requirements, the payment terms for participating workers and the risks involved.

This is one reason the Foundation, Certificate and Diploma pathways represent increasing levels of responsibility. The progression is not merely about performing more tasks. It is also about understanding and managing the commitments associated with the work.

The principle of fair settlement

A good payment arrangement begins before the work begins.

The deliverables should be clear. The compensation model should be understandable. Acceptance criteria and payment triggers should be agreed in advance. Changes and exceptions should be handled transparently, and the final settlement should follow the applicable terms.

This protects both the customer and the worker. It also creates better records of completed work, supports responsible service delivery and provides a stronger basis for future assignments.

Define the work. Agree on the terms. Deliver against the standard. Settle according to the agreement.