Time & Attendance
By Staff Report
Jan. 31, 2002
Here’s a sample relocation policy used by a company in the retail/wholesale trade industry. It also includes an expense estimate form for employees to fill out.
Eligible Employee Groups:
Top Management; Management (excluding Top Management); Exempt, Non-Management; Nonexempt Office Personnel; Nonexempt Technical, Skilled and/or Semi-Skilled Personnel
Employee Relocation – Exempt Employees
To establish a policy for the reimbursement of defined expenses incurred when a salaried exempt employee is permanently transferred from one location to another at the Company’s request.
To provide financial and administrative relocation assistance to a salaried exempt employee in order to maximize their performance and minimize their inconvenience during the relocation.
SCOPE OF POLICY
This policy applies to exempt employees who are required to relocate because they are being permanently transferred (for no less than 12 months) at the Company’s request to a location within the Company (within the United States [including possessions and territories] and Canada) that is at least fifty (50) miles farther from their residence than their former job location.
Reimbursement for relocation will be limited to expenses enumerated below incurred by the employee and legally-recognized, immediate family members who currently live with the employee.
Eligibility must be approved by the supervising manager, functional Vice President and Human Resources Department. Prior written approval is required for exceptions to this policy, either in determining eligibility or extent of coverage. This prior written approval must be obtained from the Human Resources Department.
Benefits under the plan will cease if the employee resigns his/her employment or is terminated for cause, including for poor performance. In addition, if an employee resigns from his/her employment, or is terminated for cause, including for poor performance, within 12 months of having been transferred, the employee will be required to reimburse the Company for relocation expenses paid for by the Company under this policy.
Nothing in this policy should be construed as a contract for employment for any period of time or as altering the at-will nature of the employment relationship. The Company has the right to terminate employees for any or no reason at all, at any time.
This plan is administered by the Human Resources Department. The Company will not be responsible for any action taken which is beyond the scope of this plan.
All requests of employee relocation must be approved by the supervising manager, functional Vice President, and the Human Resource Department prior to actual relocation or commitment to the employee. In addition, any exceptions to this policy require the prior written approval of the Human Resources Department. The Relocation Expense Estimate form must be approved prior to relocation expenses incurred.
The following outlines the reimbursement:
In order to address the financial concerns you may have regarding a move, the Company has put together the following relocation package of up to a maximum of $20,000, inclusive of tax gross-up. Included in this package are some items that may help to address some personal concerns you may also have.
Trips to Locate Living Accommodations
Reimbursement will be made for reasonable and actual expenses incurred by you and your spouse for travel to the new location to locate living accommodations. This reimbursement includes meals, lodging, and transportation.
In some instances, you may wish an additional family member(s) to accompany you on this trip or someone other than your spouse. In such cases, approval by Human Resources would be required. We also realize that it can be difficult to house hunt with children. In these cases, reimbursement of up to $50 per day will be made for baby-sitting charges which may be incurred due to your travel provided that the services are not rendered by a family member.
A limitation of two trips not to exceed ten days combined is allowed. Any additional travel that may be required will be considered and is at the discretion of the Company.
Arrangements for these trips should receive prior approval by Human Resources, and all accommodations should be booked through the in house travel department.
Movement of Household Goods
The Company will contract with a moving van lines to provide services to you at a discounted rate.
The type and extent of assistance in relocation of an employee’s household goods is as follows:
Moving to New Residence
You will be reimbursed for reasonable and actual expenses incurred for the cost of meals, lodging and travel (limit of two (2) cars at the then current IRS limit per mile) or coach air transportation. With prior approval, the mileage allowance may be applied to commercial shipment of the automobile(s).
Sale of Residence by Employee
If you choose to sell your primary residence, you will be reimbursed for the following costs, including but not limited to:
No reimbursement will be allowed for cleaning, maintenance, or repair costs.
Purchase of New Residence by Employee
If you previously owned a primary residence and you choose to purchase a residence to be used as your primary residence at the new location, you will be reimbursed for customary buying cost, including but not limited to:
No reimbursement will be allowed for the following:
The above listed reimbursement for the purchase of a home will be valid for 3 months from the date of your relocation to the new area as defined by the Company.
Reimbursement for Loss of Security Deposit
If you are a renter, you will be reimbursed for penalties associated with early lease termination of a rented apartment or house, not to exceed one (1) month’s rent, after attempts by you and the Company have failed to have the penalty waived.
Miscellaneous Relocation Allowance
To help you offset the cost of the many miscellaneous costs incurred in a relocation, you will receive a lump-sum payment equal to 100% of the new monthly assignment salary up to a maximum of $6,000.
This allowance is provided to you in a lump-sum payment once final approval by management for the relocation is received. This payment offers you the flexibility to use the funds for interim living and other incidental moving expenses as listed below.
Examples of expenses for which this allowance is provided are as follows:
Receiving the Miscellaneous Relocation Allowance in a lump-sum permits you to manage the amount to your best advantage in paying for such expenses. No amount in addition to this lump-sum (other than specifically called for in other sections of the Relocation Policy) will be provided.
Income Tax Adjustment
Many of the items reimbursed or paid to you under this policy are considered taxable income. The total sum of these items subject to taxation will be determined and that amount will be “grossed-up” at a flat rate of 34%. This adjustment applies toward applicable state and federal payroll taxes.
In addition to the above reimbursable items, the Company has arranged for the following services to be provided to you free of charge: employee information package on the new area, telephone counseling, relocation kits, realtor and rental assistance, home marketing assistance, spousal employment assistance, and assistance in finding other special services (i.e., child care, special medical facilities, elder care, etc.).
Before any reimbursement is made under this policy, you will be required to sign a Promissory Note requiring you to reimburse the Company for any relocation expenses paid if you should voluntarily leave the employment of the Company or be released from employment for cause, including poor performance, within twelve (12) months of relocating.
INSTRUCTIONS FOR COMPLETION OF RELOCATION EXPENSE ESTIMATE FORM
Data Needed for Estimate:
Social Security No.:
Approx. dates of relocation:
Data Needed for Estimate:
Is this move budgeted:
Reprinted with permission from “Exhibit Book of Employee Relocation Policies,” Watson Wyatt Data Services, 2000. For more information, visit www.wwdssurveys.com or call (201) 843-1177 and ask for Customer Service.
Come see what we’re building in the world of predictive employee scheduling, superior labor insights and next-gen employee apps. We’re on a mission to automate workforce management for hourly employees and bring productivity, optimization and engagement to the frontline.
federal law, minimum wage, pay rates, state law, wage law compliance
Staffing Management4 proven steps for tackling employee absenteeism
absence management, Employee scheduling software, predictive scheduling, shift bid, shift swapping
Time and Attendance8 ways to reduce overtime and labor costs
labor costs, overtime, scheduling, time tracking, work hours