Warning: preg_replace(): Empty regular expression in [path]/showthread.php on line 2381

Warning: preg_replace(): Empty regular expression in [path]/showthread.php on line 2381

Warning: preg_replace(): Empty regular expression in [path]/showthread.php on line 2381
Relocation Policy,,,, - CiteHR

No Tags Found!

SH

Shai89308

Executive Hr

AS

Ammu Shanvi

Human Resource

GS

G SHASHI KRISHNA

Senior Manager - Hr

AH

Aizant HR

Human Resources

MA

MARSHAL

Safety Officer

AK

Anish Katoch

Hr Executive

PR

PranjalR

Hr Recruiter

AP

Alka Pal

Hr Executive

Karthikeyan8195

Management Consultant

MK

Mohit Kumar Puri

Head Marketing

AU

Austex

Accounts Manager


M.Peer Mohamed Sardhar
732

Relocation Policies

This factsheet gives introductory guidance. It:

• considers the types of relocation that take place

• identifies why relocation takes place

• looks at what is included in a relocation policy

• comments on external assistance available.

Types of relocation

The basic types are:

• individual – an employee is moved to another geographical location

• group – a section, department or even entire organisation is moved en masse. This could be a short distance, for perhaps an office move, or long distance as a result of a merger.

• overseas – an employee is moved to work abroad, often in another division of the organisation.

This factsheet concentrates on individual and group relocation. For further information on the overseas aspects, see our factsheet on Managing international assignments.

• Go to our Managing international assignments factsheet

Each type of relocation will need to be carefully planned and managed to ensure a balance between the needs of the employer and the employee.

The benefits of relocation

For an organisation, the benefits of relocating individuals are:

• being able to place someone with known abilities and expertise into a specific role

• overcoming skills shortages at particular locations

• as a recruitment and retention tool within an overall career development programme.

For the individual, the benefits of individual relocation are:

• career development and progression

• broadening of knowledge of business understanding

• experiencing a new region, or gain a better work-life balance

• personal development.

The relocation policy

The aim of a relocation policy is to ensure that:

• the employee is no worse off financially and, preferably, has volunteered for relocation

• the relocation is carried out to a schedule known and agreed by all those involved

• the costs incurred to the organisation are reasonable and relevant to the relocation

• the relocated employee is effective in their new role as soon as possible.

These aims can be achieved by ensuring that your policy is well-researched and relevant to the personnel within your organisation.

Checklist for a relocation policy

A relocation policy should contain information on:

• positions eligible for relocation; generally senior or middle managers but also specialists (especially in technical disciplines) and also, occasionally, administrators or junior staff

• journey time and/or distance criteria for entitlement to relocation assistance

• relocation expenses that are eligible for financial assistance (eg mortgage assistance, disruption compensation)

• rules for reclaiming relocation expenses

• basis for calculating the amount payable (eg a certain percentage of salary)

• length of notice of relocation

• length of time the employee must remain in position in order not to be liable for repaying relocation assistance.

It is recommended that for sectors, such as retailing, where relocation is likely, employee contracts should include a mobility clause (ie the contract expressly states that employees may be required to work in different locations).

Relocation assistance

Financial assistance

Moving from one area to another is costly, and many organisations will help employees by offering financial assistance as part of a wider relocation package as a way of retaining employees. In 2002, an IRS survey1 reported that the cost of relocation in the UK was typically ฃ12,000, down from ฃ15,000 on their similar survey in 1998. But figures vary widely – an IDS Study2 gives a range of below ฃ8,000 to over ฃ28,000 for relocation assistance given to employees.

The largest proportion of the costs is related to the provision of accommodation, usually house buying and selling. Typically, such costs include:

When looking for a new home:

• paid leave whilst house-hunting

• temporary accommodation whilst house-hunting plus weekend visit costs

• travel costs whilst commuting before new accommodation is arranged.

When selling an existing property:

• marketing assistance

• estate agent’s commission

• compensation for negative equity losses

• mortgage redemption costs

• legal fees including conveyancing

• charges for maintenance of empty property.

When buying a new property:

• survey fees

• stamp duty

• legal fees including conveyancing

• interest charges on bridging loans or interest-free loans for bridging

• mortgage assistance.

When moving to a new home:

• removal and storage costs

• paid leave for house-moving

• travel costs when moving

• disturbance allowance (see below for details).

For non-homeowners, financial assistance will be given in seeking rented accommodation in the new area, through advertisements and/or accommodation agencies.

For many of the above fees and charges, the relocation policy may specify:

• an upper limit

• taking the lower of two (or possibly three) quotations

• using a solicitor, surveyor, etc from an approved supplier list.

To ensure that an employee who is moving is able to sell their existing property at the market price, most relocation management companies run Guaranteed Sale Price (GSP) or Outright Purchase schemes. These schemes enable relocation to proceed without the delays frequently associated with a house sale. But not all employees choose to use these schemes because they do not have control of their sale and are not convinced that they are getting the best possible price for their property. However, in order to encourage a timely move and avoid the extra costs incurred by delays, some company policies will only provide further types of relocation assistance if the employee accepts the GSP.

Selling a property in one area and buying something similar in a new location can cause major problems because of the significant variations in property prices across the UK, and it is important that the relocation policy deals with this complex issue. Failure to do so could leave an employee unable to relocate through failure to arrange appropriate accommodation.

An additional payment related to moving from one property to another is ‘disturbance allowance’. The amount paid depends on factors such as the employee’s existing property situation and family circumstances. It may be paid as a flat sum or a percentage of salary (typically 10-15%) or a combination of the two. It may be limited to receipted allowable expenses - as defined by HM Revenue & Customs (HMRC) - or may also include a taxable amount to cover general disruption. Included may be:

• reinstallation of domestic appliances

• disconnection and reconnection of utilities

• refund of unexpired season tickets and subscriptions to local clubs and societies

• redirection of mail

• replacement carpets and curtains

• new school uniform

• pet care

• garden landscaping.

Tax rules for relocation assistance

The Finance Act 1993 set out the tax allowances for relocation expenses. Tax details on the rate of eligible expenses and benefits, non-eligible expenses and benefits, employers Class 1A National Insurance Contributions (NICs) and tax relief are published on the HMRC website - see Useful contacts section below.

Repayment of relocation assistance

Clawback of financial assistance is usually date-related. Typically employees will be required to repay the financial assistance if they leave their employment within 1-2 years of the date of the move. This may be a full repayment, or it may be in proportion to the number of months worked since the relocation.

Time and distance criteria for relocation assistance



Relocation criteria depend to some extent on local conditions and typical travel-to-work times. In essence, for a relocating employee to obtain financial assistance, the journey to work from their new home should be significantly less than if they had not moved. Typically, relocation assistance will be given if the new location is more than 45 miles by road or one hour’s travelling time from the employee’s existing home. However, some organisations will pay for relocation for distances as short as 25 miles. In addition, some may specify that the new home should be within a certain time or distance from the employment location, or that the move should be further than a minimum number of miles.

'Soft' issues in relocation



Relocation changes lives, as well as jobs, so it is important for HR to take an active role on the relocation project team, as even the most generous package will not guarantee a successful relocation. The outcome of any particular relocation will depend to a large extent on the soft issues that affect the employee. It is therefore important to consider holistically the needs of the employee and their family, within the context of the wider needs of the business.

In order to minimise stress and maximise the speed in which the employee becomes productive in the new location, it is important to engage with the employee. Ways to do this include:

• Initiate discussions with the employee early in the process to have as long a period of notice of relocation as possible and maintain good communications throughout.

• Offer pre-move reconnaissance visits for the employee and their family to see the new location and to meet the people who work there, to see the surrounding area, visit estate agents, etc.

• Provide counselling to deal with unresolved issues which may lead to a reluctance to relocate such as concerns about long-term job security at the new location.

• Provide assistance in relevant areas such as education provision, elder care, pets.

• Recognise the needs not only of young children but also of teenagers and elder relatives.

• Be aware of the importance of the timing of a relocation and be prepared to compromise, for example by arranging temporary accommodation for an extended period if there are short term reasons for an employee not to relocate (eg at a critical time in children’s education).

• Provide career counselling and help with job searches in the new location for the employee’s partner.

• Provide familiarisation in the new area and help with finding services such as a doctor and dentist once the move has been made.

• Accept that ultimately there is no benefit in relocating someone who is reluctant to move as they will not work effectively in those circumstances. Support them in finding a new position.

For relocation to new offices, ideas include tours for employees to see ‘work in progress’, newsletters/intranet updates and welcome parties.

Outsourcing relocation

Many organisations, whether or not they have relocation specialists on their staff, use the services of relocation management companies for all or part of the relocation process, especially for large-scale moves. The principal reason for this is lack of in-house resources, either in terms of time available or of expertise.

Some organisations feel that, in particular, it is useful not to be directly involved in house sales because not only is it time-consuming but it can also become an emotive issue that is better dealt with by a third party. Organisations may wish to retain some of the aspects of relocation in-house (for example the overall management of expenses or the less tangible personnel issues) whilst handing over the rest to an outside specialist.

Typical services offered by relocation management companies

General

• Developing relocation strategy and policy.

• Administration of the relocation process.

• Expenses tracking.

• Tax services.

Property

• Managed sale or marketing assistance.

• Valuations and house price differential advice.

• House purchase schemes.

• Vacant property maintenance.

• House-hunting, house purchase or rental.

• Removals and storage.

Advice

• Partner job-hunting and career counselling.

• Reconnaissance visits to new location.

• Assistance with utilities companies.

• Educational advice.

Short distance relocation

In general, if an employee is asked to make a short distance relocation, it is unlikely to represent a significant problem if it doesn’t make significant changes to the daily commute.

Some organisations offer assistance at reduced rates, usually based on either an increase in the number of miles travelled to work, or an increase in travelling time. (ie 45 and 75 minutes extra).

Where employees are reluctant to relocate for family or property reasons, employers may encourage or even insist on relocation to prevent the employee attempting to commute excessive distances to avoid health and stress issues.

Alternatives to relocation

On occasions, it is worth considering solutions other than relocation. These include:

• secondment - for more information see our factsheet on secondment

o Go to our Secondment factsheet

• flexible working hours or working at home a number of days a week to avoid long-distance commuting

• weekly commuting – living in rented accommodation, serviced accommodation or a second home

• working from home and teleworking

o Go to our Teleworking factsheet.

From India, Coimbatore
raghushekaran
Hi, Good work.. keep it up. Keep posting such good policies. It will be useful to everyone.. regards, Raghu
From Nepal, Kathmandu
Find answers from people who have previously dealt with business and work issues similar to yours - Please Register and Log In to CiteHR and post your query.




About Us Advertise Contact Us Testimonials
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2024 CiteHR ฎ

All Copyright And Trademarks in Posts Held By Respective Owners.