RELOCATION POLICY & GUIDELINES

Human Resources April2011

Overview

Section / Quick Link
Policy / Go
Responsibilities / Go
Relevant legislation (inland revenue rules) / Go
Home Owners’ Package / Go
Non Home-Owners’ Package (rented accommodation) / Go
Employees Relocating from Abroad / Go
Additional Leave / Go
Resignation/Termination or employmentduring first 2 Years(Repayment) / Go
Procedures to Claim Expenses / Go
Review Procedure / Go
Monitoring / Go

Related Documents :

  • Relocation Expenses Agreement
  • Application for Payment of Relocation Expenses

Both these documents must be completed to apply for relocation expenses.

Policy

As part of the Council’s policy of promoting Torbay Council as an employer of choice, the relocation policy offers incentives to attract quality candidates from outside the area.

A relocation package may be offered to new employees appointed on SCP 29 and abovewho live more than a 35 mile radius from their main place of work in Torbay.

New employees are free to choose the area of their relocation but must move to within a 20 mile radius away from their normal place of work.

Expenses are normally only paid if the employee relocates within 1 year of taking up employment with the Council, although the Executive Head of Servicemay agree to extend this time limit if there are justifiable circumstances (for example, difficulties in selling a property). Although payment of these relocation expenses will not be dependent upon their choosing to reside in Torbay, employees will be expected to have regard to their travelling time from their workplace.

The relocation package is discretionary and Managers should decidein advance of advertising whether a relocation package is applicable, and the maximum amount to be offered. In all cases where the relocation package is to be offered, the appointment must be for at least 2 years’ duration.

The relocation package will not apply in the following circumstances:

  • If the spouse/partner of the new employee is receiving a relocation package from their employer for the same residence
  • If the employee is moving to the area to join a member of the family/partner already resident here.
  • The employee moved to the Torbay area prior to the job offer being made.

Responsibilities

The Executive Headwill be responsible for agreeing any relocation package, and will seek advice from Human Resources in order to ensure consistency.

Relevant Legislation

The relocation policy operates within the Inland Revenue regulations on relocation which state that, to receive exemption for the benefits provided, a claim must be made before the end of the tax year following the one in which the employee starts their new job – a tax year runs from 6th April one year to 5th April the next.

For example if an employee starts their new job on 18th March 2009, they would have until 5th April 2010 to use their exemption or if the start date was 2nd September 2008, they would have until 5th April 2010.

Under current Inland Revenue rules a maximum of £8,000 can be reimbursed to an individual for relocation purposes before they are liable to pay tax – provided the expenses are spent as set out in the guidelines detailed below.

Relocation Packages

There are two relocation packages available: Home Owners and Non-Home Owners (or those home owners who are not relocating fully).

A) Home Owners’ Package

Relocation Package Allowances
Salary Grade / Policy / Max Amount
SCP 28or below / Not normally entitled to a relocation package. However in exceptional circumstances (for example in difficult to fill posts) and at the discretion of the Executive Headthey may be entitled / £3,000
SCP 29- SCP49 / £5,000
SCP50and above / £8,000
Acceptable Relocation Expenses

Employees who are entitled to the relocation package must provide evidence that their home is up for sale - this can be in the form of sales particulars or a letter from an estate agency or solicitor.

In line with Inland Revenue guidelines, the following are acceptable expenses which may be incurred within the relocation package. All expenses submitted must have VAT receipts attachedwith a full description of the goods or services purchased:

1)Costs of disposing of the existing home, including

  • Legal fees and services
  • Estate Agent’s fees
  • Disconnecting gas, electricity, water and telephone supplies
  • Insurance, maintenance and security once the property is left empty and before it is sold

2)Costs of acquiring the new home

  • Legal fees and services
  • Structural surveys and valuations
  • Connection fees for gas, electricity, water and telephone supplies
  • Relaying carpets
  • Replacing curtains, rails and light fittings

3) Costs of moving household furniture and effects, including:

  • Packing and unpacking
  • Removing and refitting domestic goods eg cooker, washing machine etc
  • The actual removal
  • Temporary storage – if the move is not directly from the ‘old’ residence to the new.
  • Insurance specially taken out to cover goods in transit or in temporary storage

Note: For removal and storage expenses, three competitive written quotations must be obtained, the lowest of which will be paid.

4) As per 3 above, where it is necessary to relocate into temporary accommodation in order to take up an appointment quickly, and a further move within the area occurs when a local property is purchased, three written quotations must be obtained, the lowest of which will be paid.

Note: Where it is anticipated that a second removal will need to take place due to temporary housing being utilized, the total payment may be split in two parts to accommodate this, if the Executive Head agrees.

5) An employee may choose to undertake their own removal and in this case the cost of the van hire and fuel will be reimbursed, provided that three written competitive estimates are obtained demonstrating that self removal is the least costly option.

6) Two separate visits by an employee and family for a total of up to 5 nights’ accommodation including second class rail fare, overnight accommodation and subsistence. Accommodation and meal expenses will only be reimbursed after receipts have been produced to prove that these expenses have been incurred.

Exclusions

Under Inland Revenue rules, the following are excluded from Relocation expense exemptions:

  • Mortgage or housing subsidies
  • Interest payments for the mortgage on the existing home
  • Redirection of mail
  • Council Tax bills
  • Purchase of uniforms for children’s new school
  • Mobile phone
  • Compensation for losses e.g.

-Having to give up a part used season ticket

-Penalty for giving insufficient notice of a child’s withdrawal from school

-The cost of having to join a new sports or social club

Weekly Allowances

In addition to the above (but not exceeding, along with other claims made, the maximum amount payable to an individual), the Council can pay a weekly allowance to anyone eligible for the relocation package who is having to pay rent and mortgage simultaneously. It is important to remember that these weekly payments are deducted from the total relocation package that has been agreed.

This weekly allowance will be the actual cost of the weekly rent being paid or £100, whichever is less, and proof of the rent being paid will be required.

This weekly allowance will be payable for a period of up to 26 weeks. In circumstances where the home remains unsold, the period of payment may be extended by the Executive Head. However, this will be decided upon on an individual basis and is not guaranteed. In these cases, the period of payment will be reviewed every 8 weeks by theExecutive Headconcerned.

Return Visits

In cases where the individual has moved into temporary accommodation in order to take up their duties but their family have not been able to relocate, the Council will pay for the employee to visit their family once every three weeks for a period of up to 24 weeks. These journeys will be reimbursed at the cost of second class rail fare. Again, this amount and other claims made, cannot exceed the maximum amount.

In exceptional circumstances where it has not been possible to sell the family home, this period may be extended at 9 weekly intervals by the Executive Head.

In cases where the employee and their family have moved into temporary accommodation but the family home has not yet been sold, the Council may pay for the employee’s expenses to return to the family home once every eight weeks for a period of up to 24 weeks from the date of leaving the property empty. These journeys will be reimbursed at the cost of second class rail fare only.

B)Non Home Owners’ Package

(Renting/Home Owners not Permanently Relocating)

The full relocation package is not available to non-home owners, i.e. those relocating from furnished or unfurnished rented accommodation or to those employees who own homes but are not relocating fully to the area. However, to help offset costs attributable to a “first move” to Torbay, newly appointed employees may be reimbursed for the following:

Max Amount / For
£750 / Approved costs incurred in replacing soft furnishings such as carpets, curtains and other essential items agreed by the Executive Head. Once approved, VAT receipts must be submitted in support of any claim.
£1,000 / Removal costs. The Executive Headmust approve this and three competitive written quotations must be obtained.
£250 / If a second move within the local area is necessary and approved by the Executive Head. Once approved, VAT receipts must be submitted in support of the claim with a description of the goods or services purchased.

Employees Relocating from Abroad

Foreign nationals moving to take up a post in the UK are eligible for travelling costs.

Additional Leave

Subject to the discretion of the Executive Head, if relocation takes place at the time of, or after, commencing employment with the Council, the employee may be given two days additional paid leave in order to assist with the removal process.

Resignation/Termination of employment during the first 2years of employment

The relocation package will be treated as an interest free loan from Torbay Council to enable the employee to move nearer their place of work. They will be required to sign a Form of Agreement undertaking to repay the loanin accordance with the timescales stated below should they voluntarily leavethe Council‘s employ within 2years of taking up employment. This will also include dismissal e.g. where the employee is dismissed on grounds of misconduct or capability.

Period of service (from date of appointment) / Repayment required
Leaving 0 – 6 months / 100%
Leaving 7 – 12 months / 75%
Leaving 13 – 18 months / 50%
Leaving 19 – 24 months / Reducing from 25% by one-sixth of 25% for each completed month up to 24 months

The employee’s last working day will be the date used for this calculation. The amount will be deducted from salary or any other monies due to the employee from the Council. If the amount is such that the final salary and monies due will not completely pay off the amount, then the employee will receive an account for the balance from Financial Services and be required to settle this before leaving the Council’s employment.

In the event of termination of employment being other than voluntary, repayment will be required in all cases, with the exception of compulsory redundancy or exceptional circumstances, e.g. terminal illness of the employee. In such cases, repayment will not be required.

Procedures on how to claim

Review procedure

The allowances detailed above will be reviewed by the Head of Human Resources annually, at which time the rate of inflation will be noted, together with current Inland Revenue rules.

Monitoring

Human Resources will monitor information on relocation packages to ensure consistency of approach.

Policy Feedback

Should you have any comments regarding this policy, please address them to the HR Policy Feedback mailbox –

History of Policy Changes

This policy was first agreed by members of the Torbay Joint Consultative Committee in August 2007.

Date / Page / Details of Change / Agreed by:
October 2009 / Various / Change job titles – Assistant Director to Executive Head / TJCC 10.12.09
October 2009 / 3 / Update examples, e.g. dates / TJCC 10.12.09
October 2009 / 2 & 3 / Removal of pay-scales, clarification of SCP’s / TJCC 10.12.09
October 2009 / 8 / Amendment to repayment section – removal of discretion for repayment / TJCC 10.12.09
April 2011 / 8 / Update to repayment terms section – change to from employee’s start date / Single Status Group 1.4.11

Policy Review date – April 2014 unless legislation/operational changes require it before this date.

April20111